A listing on Euronext Dublin ("Euronext") offers a number of advantages, including most importantly increasing distribution capacity. Euronext offers issuers a choice of two markets depending on their requirements, the Main Securities Market ("MSM"), an EU regulated market, and the Global Exchange Market ("GEM"), an exchange regulated market and multi-lateral trading facility, with equivalent rules and transparency, but outside the scope of certain EU Directives applicable to the MSM.
A listing on a "regulated market" such as the MSM allows promoters to market their fund to UCITS, pension funds and institutional investors who may require the securities in which they invest to be listed on a regulated market. A listing on wither the MSM or GEM is also advantageous in countries where the relevant authorities require or provide exemptions for investment in listed securities. A Euronext listing increases transparency and allows a promoter to profile the listed fund, the Investment Manager and fund performance on the Euronext professional investor portal "FundHub".
Advantages of a Euronext listing:
- Distribution – Classification as "a security listed or traded on a regulated market" where listed on the MSM for pension funds, institutional investors and UCITS, or as a listed security for GEM listings;
- Profile of the fund, Investment Manager and fund performance on Euronexts professional investor portal Fundhub;
- Transparency - All NAVs, financial reports and announcements of ongoing operational changes and other relevant market notifications made by listed funds are disseminated through Euronexts data feed to information vendors;
- Cost benefits. Low cost listing which also provides independent publication of NAVs for listed securities at no extra charge. Fees structured based on number of sub-funds rather than securities listed or capitalization;
- For ETF issuers – a passport to trading on the London Stock Exchange;
- A comprehensive set of listing rules;
- A commitment to aggressive timings on processing listing applications;
- Flexible and approachable listing regime;
- Provides a "stamp of regulation" for funds which may be domiciled in unregulated jurisdictions. The level of scrutiny imposed by Euronext on an initial and ongoing basis provides the market with a significant level of transparency and investor protection;
- A significant element of prestige and visibility, particularly as Ireland is a member of both the OECD and the EU; and
- Enables the security to be marked to market, i.e. to allow investors to refer to a quoted market price for their securities.
Euronext operates a discretionary portal for investment managers and professional investors. The site allows Investment Managers provide a targeted professional investor audience with additional information on their listed funds including profile of the investment management company, fund documentation such as the Prospectus/Supplements, KIIDS, reports, etc. The site automatically performs analytics and peer performance based on NAV history and ongoing pricing.
The site is closed to the public and available only to registered professional investors. It is carefully constructed that there is no direct link between the site and any fund or Investment Manager.
There is a minimal annual fee for FundHub.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.