Cutting-Edge Tools to Navigate Global IPO Markets
Founded in 2004, IPOX Schuster LLC is the creator of the family of IPOX Global Indexes (patent pending). Our philosophy is to classify IPOs and spin-offs into a separate asset class for a limited, but substantial period of time after “going public” because IPOs and spin-offs share unique long-run empirical dynamics. At the same time, our mission is to bring the concept of “Average IPO Investing” and “IPO Indexing” to the global marketplace. The IPOX Global Indexes characterize the aftermarket performance of IPOs and spin-offs more accurately and comprehensively than any other index group. The profile of the respective IPOX Global Index truly reflects equity capital markets activity and the growth and innovativeness of the respective economy. The IPOX Global Indexes are an ideal vehicle to capture the reported ASSET ALLOCATION BENEFITS of IPOs via a scaleable, semi-passive and transparent index vehicle.
IPOX Global Indexes
The IPOX Global indexes are value-weighted indexes that measure the average performance of IPO and spin-off companies in calendar time which satisfy certain quantitative entrance requirements. The IPOX sub-indexes, such as the IPOX-100 Global Indexes or IPOX Latin America 20 Index, are a subset of the IPOX Global Composite Index, which represents the global universe of IPO and spin-off activity in the respective equity capital market. This index has historically captured around 2300 companies and around USD 2 trillion of free float.
IPOX Index Fact Sheets
The link to the IPOX Global Indexes weekly updates provides index definitions, capitalization statistics, sector diversification and historical performance, all updated weekly.
How the IPOX Global Indexes are constructed
Index Constituents to the Global IPOX Indexes are chosen based on unbiased and purely quantitative entrance and exit rules. IPOs and spin-offs enter the IPOX Global Composite Index on the 7th trading day of aftermarket trading if certain quantitative entrance requirements are met. Subject to satisfying size, float and certain initial trading characteristics, the announcement of whether the applicable IPO will be an index constituent is made at the close of the companies first trading day. IPOX Index Constituents automatically exit the IPOX Indexes after the predetermined period of 1000 trading days or approximately four years. The series of IPOX Global Indexes maintain a totally consistent index methodology.
All-Cap Momentum Exposure
With over USD 2bn worth of products launched since 2005, IPOX Schuster LLC is the first and foremost provider of a comprehensive series of IPO indexes for the global marketplace which meet regulatory requirements over a long period of time. These indexes have been the outcome of a decade of academic and professional research on international IPO markets in the Financial Markets Group (FMG) at the London School of Economics (LSE). Because of the time-varying change in the average profile of IPO companies around the globe — a reflection of equity capital market trends and the growth and innovativeness of the global economy — the IPOX Global Indexes do not make a distinction between size, value, style or growth.
While the IPOX Global Composite Index is dynamically reconstituted to accurately reflect IPO and spin-off activity, the IPOX Sub-Indexes are adjusted quarterly. In the quarterly reconstitution, the market capitalization of each IPOX constituent is re-ranked as of the close of every second Wednesday in the quarter and adjusted for liquidity. The newly adjusted index membership takes effect on the Monday following the third Friday of every quarter until the next quarterly reconstitution process. While there is no minimum constituent’s weight in the IPOX Global Composite Index, the weighting of the largest constituents stocks in IPOX sub-indexes is capped at 10%. This insures that regulatory diversification and RIC requirements are met.