CT – October 7, 2014 – Renaissance Capital LLC, a global IPO investment advisor providing institutional research, investment management and indexing services, announced today the launch of the Renaissance International IPO ETF, an exchange traded product that tracks an index of newly public international companies prior to their inclusion in core global equity portfolios. The Renaissance International IPO ETF began trading today on NYSE Arca under the ticker symbol “IPOS.”
“The launch of the Renaissance International IPO ETF, responds to investor demand for systematic exposure to newly listed IPOs in a low-cost tax- efficient exchange-traded structure,” said Kathleen Smith, Chairman of Renaissance Capital. “When added to core equity holdings, this portfolio of new equities provides investors with unique returns and more complete coverage of the full set of public equities. The Renaissance International IPO ETF when coupled with the Renaissance IPO ETF (NYSE symbol: IPO) provides investors with access to the entire global IPO market.”
The Renaissance International IPO ETF provides investors with access to the most economically significant newly public companies by tracking a rules- based index calculated by FTSE Group and designed by Renaissance Capital’s research team to hold the largest, most liquid newly listed IPOs. Sizable IPOs are included in the ETF on a fast-entry basis on the fifth day of trading, and the rest are added during scheduled quarterly reviews. Companies are removed after two years when they become seasoned equities.
The largest country representation in the index as of September 30, 2014, includes an 18.9% weight in the U.K. and 11.5% in Japan. Emerging markets represent 25.7% of the index including an 8.2% weight in China and 6.0% in Brazil. Top holdings in the index include a 5.1% position in the Bank of Brazil’s insurance group BB Seguridade (BBSE3 BZ), a 3.0% position in Japanese beverage distributor Suntory (2587 JP) and a 2.9% position in European cable operator Altice (ATC NA).