WEEKLY Summary: The IPOX® Indexes rose towards month-end, driven by momentum-buying into the broad-based benchmarks, lower equity risk (VIX: -5.34%) and more gains for China-linked stocks (CNI: +4.11%). Declines in U.S. social networker Snap (SNAP US: -28.70%) after reporting mixed quarterly numbers dented strong sentiment into the weekend. In the U.S., e.g., the IPOX 100 U.S. (FPX US) added +0.28% to +10.10% YTD, lagging the U.S. benchmarks. Non-U.S. domiciled exposure tracked in the IPOX® International (FPXI US) performed better when compared to the U.S. counterpart, adding +1.83% to -2.96% YTD. We note big strength in the IPOX® Europe (FPXE US). Driven by gains in select Nordic-domiciled portfolio holdings, the index added +2.98% to +12.46% YTD, +237 bps. ahead of the European market. In IPOX®-linked ETF product news, we are pleased to highlight the 3-year live anniversary of the NASDAQ-listed IPOX® Europe ETF (FPXE US). According to Bloomberg, the “FPXE” ETF has gained +71.64% since it’s October 2018 launch, a massive +3770 bps. ahead of the Vanguard FTSE Europe ETF (VGK US), key gauge for European stocks. In addition, companies pursuing IPO M&A pooled in the IPOX® Growth Infusion Index (GNDX) continued to outperform, adding +2.99% last week.
IPOX® Europe ETF (FPXE) doubles return of benchmarks since 2018
IPOX® Portfolio Holdings: Amid earnings, returns diverged sharply. In the U.S., e.g., top of the leaderboard ranked direct listing application software maker Asana (ASAN US: +15.48%), hard-hit health care service provider Oak Street Health (OSH US: +13.97%), biotech Maravai LifeSciences (MRVI US: +13.24%) and perceived Paypal (PYPL US: -10.49%) takeover target social networker Pinterest (PINS US: +10.23%). Abroad, Israel-based integrated shipping services provider ZIM (ZIM US: +12.73%), German Covid vaccine maker BioNTech (BNTX US: +12.38%) and Sweden-based private equity firm EQT (EQT SS: +11.31%), recreational goods maker Thule Group (THULE SS: +11.30%) and online casino software provider Evolution (EVO SS: +10.30%) stood out. Currency weakness amid big macro growth concerns continued to weigh on exposure across Latin America, such as Brazil Fintech XP (XP US: -8.36%) and Pet Center Comerico (PETZ3 BS: -17.80%).
|Select IPOX® Indexes Price Returns||2020||Last WEEK||YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global Super Liquid (IPGL50) (USD)||66.63||1.59||1.15|
|IPOX® International (IPXI) (USD) (ETF: FPXI)||72.15||1.83||-2.96|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||47.32||0.28||10.10|
|IPOX® GINDEX™ (GNDX) (USD)||n/a||2.99||n/a|
|IPOX® ESG (IPXT) (USD)||42.29||0.60||13.04|
|IPOX® SPAC (SPAC) (USD)||48.52||1.50||-8.98|
|IPOX® Indexes: Europe/Nordic|
|IPOX® Europe (IPOE) * (USD) (ETF: FPXE)||35.14||2.98||12.46|
|IPOX® Nordic Core (IPND) (EUR)||59.89||3.78||25.44|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||47.50||0.08||-1.79|
|IPOX® China Core (CNI) (USD)||88.02||4.11||-28.54|
|IPOX® Japan (IPJP) (JPY)||25.75||-1.70||9.66|
* Basis for CME-traded e-mini IPOX® 100 U.S. Futures (IPOZ1). *also available In UCITS format in Europe in EUR (EFPX IM,), USD (IPXE LN), and GBP (FPX LN).
IPOX® SPAC INDEX (SPAC): The Index added +1.50% to -8.98% YTD and +35.20% since its 7/30/20 launch. SPAC news include: 1) Only 1 SPAC Announced Merger Agreement as Digital World Acquisition (DWAC US: +842.37%) skyrocketed on its merger with former U.S. President’s Donald Trump social media platform Trump Media & Technology Group. 2) 5 SPACs Approved Business Combinations include: a) BowX Acquisition with workspace shared company WeWork (WE US: +29.51%); b) Seaport Global Acquisition with movie rental company Redbox (RDBX US: 10/25) and c) GS Acquisition II with radiation detection provider Mirion Technologies (MIR US: +0.79%). 3) SPACs reportedly in talks include a) Ares Acquisition with luxury gym operator Equinox and b) SVF Investment 3 with Walmart-backed robotics and automation company Symbotic. 4) 18 new SPACs launched last week In the U.S.
GLOBAL Deal-flow Review and Outlook: At least 26 IPOs launched across the accessible global regions last week with the average equally weighted IPO adding +18.97% based on the difference between the final offering price and Friday’s close, respectively. Notable offerings included Norway’s warehouse robotics firm Oslo-traded AutoStore (AUTO NO: +18.65%), Chicago-based upscale burger chain Portillo’s (PTLO US: +87.15%) and Coconut water brand Vita Coco (COCO US: -7.00%). Significant deals lined towards month-end include Swedish auto maker Volvo Cars (VOCARB SS), Mubadala-backed chip maker GlobalFoundries (GFS US), investment boutique Pacific Current Group (PAC AU: +1.96%)-backed GQG Partners (GQG AU), data management software developer Informatica (INFA US), ADNOC and OCI joint venture nitrogen fertilizer supplier Fertiglobe (FERTIGLB UH), clean energy storage firm Fluence (FLNC US), online courses provider Udemy (UDMY US) and designer apparel e-commerce platform operator Rent the Runway (RENT US).
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