The IPOX® Strategy Indexes were the main beneficiaries of the big rally in global equities and the drop in global risk during Q1, with the key strategy portfolios significantly beating the benchmarks. With global IPO activity surging, the large number of significant deals demand separate tracking.
Q1 2012 HIGHLIGHTS:
· IPOX Strategy Indexes main beneficiary of the decline in global risk: After trading flat during 2011, Global IPOs and spin-offs pooled in the IPOX Global 50 (IPGL50) outperformed strongly, beating benchmark MSCI World (MXWD) by +605 bps. at similar volatility.
· IPOX Developed Asia-Pacific (IPTA) and IPOX U.S. (ETF: FPX) drive outperformance: The IPOX Asia-Pacific (IPTA) was the best performing IPOX Strategy during Q1, marking an absolute performance gain of +20.84%, beating benchmark MSCI Asia-Pacific (MXPC) by a massive +1068 bps. Runner-up was the AAPL-free IPOX U.S. which gained +19.59%, beating the Russell 3000 (RAY) by +726 bps, its largest relative performance gain since Q2 2008. With 60 trading days in Q1 and most U.S. indexes still out of sight of historic highs, the IPOX U.S. 100 closed at an all-time high on 18 trading days during Q1, underlining the power of the post-IPO/spin-off asset class when tracked with IPOX.
Key IPOX Strategies Returns Q1 2012:
|Return vs. benchmark||Name|
|IPGLC (USD)||+15.40%||+412 bps.||IPOX Global Comp|
|IPGL100||+15.93%||+465 bps.||IPOX Global 100|
|IPGL50||+17.33%||+605 bps.||IPOX Global 50|
|IPGL30||+14.17%||+289 bps.||IPOX Global 30|
|IPXO||+19.58%||+726 bps.||IPOX U.S. 100|
|IPXT||+18.08%||+576 bps.||IPOX U.S. 30|
|IXTE (EUR)||+2.79%||-97 bps.||IPOX Europe 30|
|IPXUJPEU (EUR)||+4.85%||+109 bps.||IPOX Europe 50|
|IPTA||+20.84%||+1068 bps.||IPOX Asia-Pac. 30|
|IPXUEM||+14.80%||+115 bps.||IPOX Emerging Mkts.|
|IPXUBRIC||+14.58%||+105 bps.||IPOX BRIC 25|
|IPXUCHCP||+11.20%||+412 bps.||Chin IPOX Comp.|
|CNI||+9.26%||+216 bps.||China IPOX 20|
|IPXUCAUP||+3.63%||+75 bps.||China IPOX Comp.|
|IPXULATT||+17.37%||+333 bps.||IPOX LatAm 20|
|IPXK30K (KRW)||+0.15%||-1016 bps.||IPOX Korea 30|
|Why chose IPOX to close the IPO/spin-off asset allocation gap?|
|· Proven real-time performance over market cycles|
· Scalable and stable with a clearly defined Philosophy
· Patented Index Technology
· Best-In Practice Research Service and Support
· Emerging Markets IPOs rise but display less relative strength, Europe and Korea weakest link: Chinese IPOs tracked by the IPOX China (IPXUCHCP) finished Q1 +11.20% higher, while IPOX Latin America (IPXULATT) gained +17.37%.
· U.S. IPOs on top of global IPO league: Low risk and strong performance catapulted the U.S. to the top of the (accessible) global IPO league. During March, e.g., 65% of global stock market capitalization addition through IPOs and spin-offs originated from deals with a dedicated U.S. domicile. Ahead of Facebook (FB), the momentum in U.S ECM activity is at a 5-year high.
· Behind the number - Initial pricing and trading sentiment for U.S. IPOs: During March, the median U.S. IPO rose 15%, above the historical median for U.S. IPOs (8%) and IPOs on foreign markets (6%). The broad diversity of deal flow across sectors/size/PE/VC-backing has led to strong market participation for U.S. IPOs. This trend is expected to continue into Q2/Q3 and demands separate tracking.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.