Amsterdam, Brussels, Lisbon, London, Paris – 2 June 2014 – Reflecting its ongoing programme of initiatives in support of companies, EnterNext, the Euronext subsidiary dedicated to promoting and growing the market for SMEs, today announced two measures to increase equity research focusing on mid-size companies. They apply to companies covered by EnterNext.
Agreement to license Morningstar’s quantitative equity ratings on TMT stocks
EnterNext is teaming up with Morningstar, a leading provider of independent investment research, in a new initiative dedicated to SMEs.
This will initially focus on the 220 TMT shares listed on Euronext’s four European markets - Amsterdam, Brussels, Lisbon and Paris - representing €27 billion in market capitalisation.
Over 40% of these shares are currently not followed by any analysts at all. The initiative should thus raise the sector’s visibility at a pan-European level and expand the pool of potential investors.
Under the agreement, Morningstar’s quantitative equity ratings, quantitative equity reports, and a quarterly sector review will be available later this year through its websites and via third-party providers for individual investors across Europe. Investors may also download the reports from EnterNext’s website.
Commenting on the programme promoting TMT sector shares, Jean-François Bay, General Manager of Morningstar France, said: “In a period where Europe can be seen anew as a region offering investment opportunities, we’re glad to work with EnterNext for better visibility of SMEs/SMIs among professional investors as well as among individuals. Our collaboration with EnterNext expands the availability of our independent quantitative equity ratings and our unique methodology. By providing Morningstar’s quantitative ratings for these equities, we can provide information that is important to investors so they can make better decisions.”
Programme targeting brokers covering mid-caps
Starting 2 June, brokers that regularly publish equity research focusing on mid-caps will qualify for a significant reduction in trading fees for these shares, along with greater visibility since a list of the SMEs they cover will be published on EnterNext’s website (www.euronext.com/enternext/equity-research).
Both of these initiatives are a natural extension of EnterNext’s drive to forge stronger ties between listed SMEs and investors. As practical moves, they fit in perfectly with the strategy of assisting small and mid-size companies that EnterNext has pursued since its founding in May 2013.
Today SMEs’ genuine momentum and appeal is visible in their strong market performances, the vigorous pace of IPOs, investor favours for the segment as a whole and the launch of PEA-PME savings accounts—gains that deserve continued support.
Eric Forest, Chairman and CEO of EnterNext said, “These two programmes result from a year of meetings and discussions with company leaders and investors. Their deployment underscores our commitment to meeting market needs and expectations, with equity research a vital factor driving growth. Together they will also shine a spotlight on companies in the fast-growing TMT sector, which we want to develop.”