First Trust IPOX Index ETF Turns 6; 5 IPOs Set For This Week

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U.S./Europe recovered as a positive FED and U.S earnings outweighed weakness in Asia/Emerging Markets. With the IPOX Strategies mixed and IPOX U.S. celebrating its 6th anniversary with top returns, a large number of IPOs went public. More IPOs of U.S. private equity firms in the pipeline.


· IPOX Strategies mixed, ex-Asia rises:Contrary to last week, relative weakness amongst China-linked (IPXUCHCP) and developed Asia-Pacific (IPTA) exposure was mitigated by strength in IPOX U.S. and IPOX Europe. On the global level, the IPOX Global 50 (IPGL50) rose +0.20% to +18.25% YTD, underperforming benchmark MSCI World (MXWD) by 93 bps., remaining +831 bps. ahead YTD.

The regional IPOX Strategies diverged sharply: After celebrating the ETFs 6th anniversary, the IPOX-linked U.S. IPO and spin-off ETF (NYSEARCA:FPX) gained +1.85% to +19.77% YTD. The ETF has a five star Morningstar rating, and ranks within the top 10% of best performing ETFs YTD and on a 1,3 and 5-year basis according to Bloomberg.

New all-time highs in the hedge-fund heavy members including Philip Morris International (NYSE:PM), Rackspace (NYSE:RAX) and Visa International (NYSE:V) contributed to the good showing. Recent non-IPOX stocks in "hot" sectors suffered, including U.S. social gamer Zynga (NASDAQ:ZNGA) after earnings. The IPOX Europe Universe bounced against weak European benchmarks with the IPOX Europe 30 (IXTE) gaining +2.27% with Spain's Amadeus IT Holdings (AMS SM) reaching an all-time high. The IPOX Strategies focusing on Developed Asia-Pacific (IPTA) fell by -1.20% to +21.59% YTD. Weakness in 2010 IPO Japanese Financial Dai-Ichi Life (8750 JP) contributed to the decline. Notable is the big divergence in the Macau-based casino operators: While Wynn Macau (1128 HK) closed near post-IPO highs, Sands China (1928 HK) slumped on weak earnings. Against weakness in U.S. gamer Zynga, Japanese gamer and 12/2011 IPO Nexon (3659 JP) closed the week near a new post-IPO high.

Key IPOX Strategies Returns YTD 2012:

Ticker (BBG/Reuters) Return


YTD 2012 Name
IPGLC (USD) 0.77 14.33 IPOX Global Comp
IPGL100 1.11 14.66 IPOX Global 100
IPGL50 0.20 18.25 IPOX Global 50
IPGL30 0.13 15.80 IPOX Global 30
IPXO 1.85 19.26 IPOX U.S. 100
IPXT 1.69 17.93 IPOX U.S. 30
IXTE (EUR) 2.27 1.94 IPOX Europe 30
IPXUJPEU (EUR) 1.87 4.83 IPOX Europe 50
IPXUEM -0.33 14.63 IPOX Emerging Mkts.
IPTA -1.20 21.59 IPOX Asia-Pacific 30
IPXUBRIC 0.04 13.25 IPOX BRIC 25
IPXUCHCP -1.16 13.96 Chin IPOX Comp.
CNI 0.02 13.01 China IPOX 20
IPXUCAUP 0.37 12.58 China IPOX Comp.
IPXULATT 1.33 13.41 IPOX LatAm 20
IPXK30K (KRW) -2.04 -4.83 IPOX Korea 30
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Why choose IPOX to close the IPO/spin-off asset allocation gap?
§ Proven: Real-time performance over market cycles

§ Scalable and Stable: Clearly defined Philosophy

§ Patented: Index Technology

§ Best in Practice: Support and Research

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· Most significant IPOs launched (Week 04/24/12):

Company Ticker Return / IPO (%)
Acquity Group Ltd AQ US -4.17%
Alpek SAB de CV ALPEKA MM 4.47%
Branding China Group Ltd 8219 HK 4.04%
Brunello Cucinelli SpA BC IM 49.68%
BTG Pactual Participations Ltd BBTG11 BZ 0.00%
Charm Care Corp KK 6062 JP 26.32%
China Zhongsheng Resources 2623 HK 0.00%
Cia de Locacao das Americas LCAM3 BZ -0.67%
ClearSign Combustion Corp CLIR US 7.00%
Edgen Group Inc EDG US -13.64%
Envivio Inc ENVI US 2.22%
Ginko International Co Ltd 8406 TT 12.88%
Haitong Securities Co Ltd 6837 HK 0.00% Co Ltd 603000 CH 73.60%
UNICASA Industria de Moveis UCAS3 BZ 9.71%
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During the busiest ECM week YTD, the average (median) IPO gained +10.48% (+3.4%) based on the difference between the week's close and the final offering price. Amongst the accessible deals, upside focus was on Italian Luxury fashion maker big-brand Brunello Cucinelli (BC IM). Brazilian Investment bank BTG Pactual, a BSBR-like unit offering, had a disappointing debut. U.S. IPOs started mixed to lower with no love for China-linked IPOs in the U.S. (NYSEMKT:AQ). In the powerful A-Share IPO market, People.Cn (603000 CH), the website of the website of the China Communist Party newspaper The People's Daily, surged in huge volume

· The Week ahead - U.S. IPOs back to dominate:

Company Code Country Lead Manager
Carlyle Group CG US U.S.A. GS, CITI, UBS
EverBank Fin. EVER US U.S.A. BAML, CS
Pacific Coast Oil ROYT US U.S.A. BAML, CITI
PetroLogistics LP PDH US U.S.A. CITI, UBSINV
Tilly's Inc TLYS US U.S.A. GS, BAML, PJC
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IPOs of U.S. domiciled deals are back in the spotlight during the upcoming week: Carlyle Group (NASDAQ:CG), the U.S. private equity firm, offers non-voting units to the masses. It follows incumbents Blackstone (NYSE:BX), Fortress Investment Group (NYSE:FIG), recent OakTree Capital (OAK: -7.42%), Apollo Global (NYSE:APO) or Och-Ziff (NYSE:OZM). With no proceeds going to growth, apparel maker/distributor Tilly's Inc. (TLSY) pursues a capital structure event by selling a big 29.63% of the firm. Terms imply a valuation of 0.75-0.91 of 12-month sales, a 12-25% discount to listed Abercombie&Fitch (NYSE:ANF).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.