The EnterNext PEA-PME 150 index tracks companies eligible for the French government’s PEA-PME savings accounts, which encourage investment of savings in shares and are intended to help SMEs gain access to the capital they need. It is the latest in a line of SME-focused products.
EnterNext was launched to specifially promote and grow the market for SMEs. This new index is a response to industry demand for new benchmarks for midcaps. The wide range of sectors it covers gives investors an overview of France’s most liquid small and mid-caps.
The index consists of 150 French companies listed on Euronext and Alternext markets in Paris; all count among the 80 percent most liquid shares eligible for PEA-PME accounts. Shares are ranked by the size of their float; weighting of each is capped at 2.5 percent, with a 20 percent limit per sector.
Anthony Attia, CEO of Euronext Paris, said: “The new EnterNext PEA-PME 150 index is part of our ongoing efforts to help SMEs secure financing and our strategy of developing Euronext as a place to raise capital. We hope this new tool will shine a fresh light on French SMEs and support the development of PEA-PME savings accounts.”
Eric Forest, Chairman and CEO of EnterNext, added: “This index was developed in close collaboration with asset management companies and offers investors a benchmark for assessing the performance of French companies eligible for PEA-PME savings accounts. It will also help raise the profile of these 150 French companies—all covered by EnterNext—with the investment community.
The index will be revised once a year and its weighting will be reviewed every quarter.