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About Renaissance Capital
About Renaissance Capital
Renaissance Capital was founded with the simple goal of providing Wall Street quality products and services covering the IPO market, an area that Wall Street firms are restricted from serving. Historically, IPOs have represented 30% of all equity capital raised.
When we (William Smith, Kathleen Shelton Smith, and Linda Killian) met in the late 1970s at Wharton Business School while getting our MBAs, we didn’t imagine that, one day, we would be working together. After Wharton, we all went to work on Wall Street doing investment research, portfolio management, investment banking, and helping young companies raise money by doing initial public offerings.
We realized that no one was providing independent research on IPOs. The reason? Wall Street firms involved in an initial public offering are restricted from issuing research reports for a period of time before and after the offering. And, anyway, Wall Street research is invariably biased. We knew that the IPO market was a clubby place ripe for some fresh faces. And so, in 1991, we founded Renaissance Capital. We chose the name Renaissance because it represents a period of intellectual, artistic and technologic revival.
Our extensive professional experience in finance and technology meshed very well with the IPO market. Kathy, while Director of Technology and Emerging Growth Investment Banking at Merrill Lynch, took EMC and Cabletron Systems public. Bill, who holds a BS in Electrical Engineering, completed many complex financial restructuring transactions while at Bear Stearns and Kidder Peabody. Linda had managed a mid-cap fund at Citibank.
We treaded new territory and began researching the IPO market. On February 20, 1992 we published our first IPO research report, it was on Scholastic Corporation. We faxed the report to a list of financial institutions in the hopes of obtaining clients. About an hour after we faxed the Scholastic report, Fidelity called and said, “Sign us up”! And so it went. Renaissance IPO Research was launched and our client list began to grow.
In the mid-1990s, the worldwide web was evolving, and the Internet increasingly became an efficient way to reach investors who were waking up to the potential of IPOs. In 1996, our web site was launched and quickly became the leading source of IPO information.
has been named "Forbes Best of the Web".
In 1997, in response to demand from individual investors, we treaded new territory again and launched the first ever IPO mutual fund, the IPO Plus Fund, (IPOSX). It was a natural extension of our IPO research. We were already analyzing every IPO. As Barron’s referred to the IPO Plus Fund at its inception - this was the first mutual fund that offered retail investors access to IPOs. Now the individual investor with only a $5,000 initial investment could get into IPOs.
With individual investors clamoring to understand IPOs, several book publishers asked us to share our secrets. In February 2001, we published IPOs for Everyone, The Twelve Secrets of Investing in IPOs with John Wiley & Sons. The book shares our years of experience in the IPO market and gives individual investors guidance and understanding on how to profit from the IPO market.
After the IPO market crashed in 2001, Wall Street was found guilty of issuing favorable research on their IPOs in return for being awarded investment banking business. Renaissance Capital's research was selected by many of the Wall Street firms to provide the independent research on their newly public companies required to balance their research opinions. Clients of a major brokerage firms such as Citigroup, Credit Suisse Securities, Goldman Sachs, JP Morgan Chase and Morgan Stanley now have access to our work.
Tracking performance of the IPO market relative to major indices has always been a challenge. Most look at a simple average of performance of IPOs issued over a given period ignoring float-weighting and timing of inclusion. In 2007, after several years of data analysis, we introduced the Renaissance IPO Index, a float-weighted benchmark of IPO performance. Now, investors can judge the performance of unseasoned IPOs relative to seasoned equities. In 2009, the FTSE Renaissance IPO Index was selected as a finalist for the William F. Sharpe "Most Innovative Index" award.
Renaissance Capital is the leader in IPO research and investment management. Our institutional client base represents the "Who's Who" of the major institutional IPO investors. Our analysts all have top academic credentials and are specially trained in Renaissance’s proprietary research methodology. We analyze and develop an opinion on every single IPO – the good as well as the not so good. Our research ideas and proprietary data are the basis for our asset management and index expertise.
Today, when you think about IPOs, you think Renaissance Capital.
ETF Express Award:
ETFExpress awards are based on a 'peer review system' whereby readers - including institutional and high net worth investors as well as managers and other industry professionals at fund administrators, brokers, custodians and advisers - are invited to elect a 'best in class' in a series of categories via an online survey. In each category, the firms with the most votes at the end of the voting period are subject to a final review by ETFExpress's Senior Editorial team.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
As stated in the Prospectus, the total annual operating expenses for the Fund was 3.48%. The Adviser has contractually agreed to keep net expenses from exceeding 2.50% of the Fund's average daily net assets for at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual re-approval of the agreement by the Board of Trustees.
An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Definitions: Net Asset Value (NAV) of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding. Market Price is current value at which an asset or service can be bought or sold. Premium/Discount is provided to show the comparison of the daily net asset value (NAV) and the midpoint of the closing bid/ask for each of the funds.
Renaissance IPO Index® (IPOUSA)
is a stock market index based upon a portfolio of U.S.-listed newly public companies that includes securities prior to their inclusion in core U.S. equity portfolios.
Renaissance International IPO Index® (IPOXUS)
is a stock market index based upon a portfolio of newly public companies listed on non-U.S. exchanges.
The S&P 500® Index (SPX) is a stock market index which includes 500 U.S. listed companies and seeks to capture approximately 80% coverage of available U.S. market capitalization.
Risk Disclosure: Investments in the
Renaissance IPO ETF, symbol "IPO"
Renaissance International IPO ETF, symbol "IPOS"
(the "ETFs"), and the
Global IPO Fund, symbol "IPOSX"
(the "Mutual Fund") are subject to investment risk, including possible loss of the principal amounts invested. The ETFs and the Mutual Fund (the "Funds") invest in companies that have recently completed initial public offerings. These stocks are unseasoned equities lacking trading history, a track record of reporting to investors and widely available research coverage which many result in extreme price volatility. Due to a greater number of IPOs in certain segments, the Funds may also be subject to information technology and financial sector risk, small and mid-capitalization company risk, and, for the Renaissance International IPO ETF, emerging markets risk. The Funds may hold securities in the form of Depository Receipts, REITs, and Partnership Units which have greater risks than common shares. The strategies have high portfolio turnover and securities lending risks. The returns of the ETFs may not match the return of the respective indices. The ETFs are classified as non-diversified investment companies subject to concentration risk.
Prospectus: Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus and/or summary prospectus with this and other information, please visit
. Read the prospectus carefully before investing. Renaissance Capital Investments, Inc., distributor for the Mutual Fund. Foreside Fund Services, LLC, distributor for the ETFs, 1-866-486-6645.
Definitions: The Renaissance IPO Index® is a stock market index based upon a portfolio of U.S.-listed newly public companies that includes securities prior to their inclusion in core U.S. equity portfolios. The S&P 500® Index is a stock market index based on the market capitalizations of 500 large companies whose common stock is publicly traded on the NYSE or Nasdaq.
The information contained herein is proprietary and copyrighted. The media is welcome to use our information and ideas, provided that the following sourcing is included: Renaissance Capital - manager of IPO-focused ETFs.
The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO), the Renaissance International IPO ETF (symbol: IPOS), or the Global IPO Fund (symbol: IPOSX), may have investments in securities of companies mentioned.
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Renaissance Capital LLC is an SEC-registered investment adviser.
Renaissance Capital Investments, Inc. is a
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