2016 pan-European study of small and mid caps
The ageing of the European “equities” universe confirmed
For the second consecutive year, the pan-European study on small and mid caps produced by the MiddleNext Research Institute and La Financière de l’Echiquier (LFDE) analyses major trends of the European stock exchange ecosystem, its dynamics and challenges.
After the 2015 study that demonstrated, among other things, the critical importance of small and mid caps for the vitality of the European stock exchange ecosystem, the 2016 study offers several key findings:
- the significant economic and financial market overperformance of small and mid caps in relation to large caps is clearly established,
- over the last three years, volatility levels for small / mid caps and large caps has been reversed, an unprecedented development,
- while the downtrend of listed companies over the last two years has come to a halt, the microcap stock segment is continuing to contract,
- there have never been so many large cap stocks and their total market capitalisation has never been so high (10 trillion euros), whereas the overall market structure will continue to favour large caps,
- the risk of the gradual decline in flows between market segments remains unchanged over the long-term as long as there is not a more significant resumption in the trend for IPOs in the micro/small cap segment.
“The support of the stock exchange ecosystem with respect to its start-ups continues to deteriorate even though this support has never been so vital. The market environment is far from propitious to IPOs which are nevertheless crucial, explains Caroline Weber, General Manager of MiddleNext. For that reason it would be judicious to lighten the burden imposed on small and mid caps and create more favourable conditions for going public.”
“The ageing of securities listings is a reality and the narrowing of its base is not good news as long as small and mid caps constitute the source of wealth for financial markets, investors and savers. It is absolutely necessary to propose concrete and simple solutions designed once again to redirect the flow of European savings towards small and mid caps. The creation of a long-term European retirement savings vehicle would contribute significantly to this goal”, concluded Didier Le Menestrel, Chairman of La Financière de l’Echiquier.
To consult the complete study, click here.
– Laurent Sécheret / email@example.com / +33 (0)1 53 23 87 48
– Géraldine Fanara / firstname.lastname@example.org / +33 (0)1 47 23 98 12
– Anne-Charlotte Créac’h / email@example.com / +33 (0)53 70 94 21
– Caroline Weber / firstname.lastname@example.org / + 33 (0) 6 80 21 64 68
About lfde – www.lfde.com
Created in 1991, LFDE is one of the leading French independent asset management companies with more than €7.5 billion assets under management and a team of 100 employees. It is wholly-owned by its management and employees. Its business: managing savings and financial investments for retail customers, wealth management advisors and institutional customers.
About MiddleNext – www.middleNext.com
MiddleNext is the independent French association representing listed SMEs and midcaps from sectors listed on Euronext and Alternext. MiddleNext was founded in 1987 and represents and defends the interests of its member companies, assists listed companies through its training institute and contributes to the development of knowledge about mid caps through its research institute. MiddleNext co-chairs the Smaller Issuers Committee of European Issuers, the leading European association promoting the interests of companies listed on stock exchanges. European Issuers is present in 15 countries and represents nearly 9,200 listed companies with a total market capitalisation of approximately €8,500 billion.
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