European Semester e-Conference on Greece|2020 Financing the Economy Challenges and Key Recovery Accelerators Di Divis ision DD/MM/YY Ju July ly 2020
“Financial Paradox” - Priva rivate Cap apit ital Ra Rais ised (EURbn) ov over r Pas ast 10 10 yea years rs 10,0 10 80 Cumulative 8,9 Equity EUR 36bn 70 Fixed Income EUR 1.5bn 8 60 54,8 50 6 4,7 40 4,7 4,0 4 30 2,1 20 2 0,2 0,7 0,3 10 0,1 0,6 0,5 0,2 0,1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Capital Raised - Equity (xHFSF) (lh) Capital Raised Fixed Income (lh) AVG MKT CAP (€ bn) (rh) Source: ATHEX ATHEX GROUP Page 2
“Financial Paradox” - Lo Low Do Domestic ic AUM vs. s. EU - Insurance Pillar (II&III) Investment Allocation Greece at the lowest end (6%) in Investment in Domestic Equities 4bn 19bn 303bn 968bn 3bn 355bn 16bn 2,707bn 2,440bn 2,267bn 100% 75% 50% 25% 38% 36% 30% 14% 13% 9% 9% 7% 8% 6% 0% Greece Bulgaria Spain Romania Italy Ireland Czech France UK Germany Republic AUM %GDP 80% - Limited AUM Base Greece showcasing just 4% of 60% AUM/GDP vs. 20% for EU 40% 75% periphery. Gap equivalent to 20% 4% 20% c. EUR 30bn 0% EU Avg. EU Periphery Greece Source: European Ins. & Ocii. Pention Auth. - Efama ATHEX GROUP Page 3
“Financial Paradox” Expl plain ined - Inte International Aud udience Cas ash Mar arket Intl Investor Visibility Remains Elevated (as % of total trading activity) Source: ATHEX GROUP , AxiaNumbers publication, May 29 th 2020 ATHEX GROUP Page 4
Fun Funding the the Ga Gap - Lo Low Domestic ic Cap apital l Mkt Pene enetration vs. s. EU Pee eers Greek Capital Markets has significant scope given limited penetration Capitalization to GDP (market capitalization period end / GDP, %) Source: FESE Members, March 31 st 2020 ATHEX GROUP Page 5
Fun Funding the the Initi Initiativ ives - Gr Growth in in Domestic ic AU AUM Impact Suppliers of Capital Strengthening of the domestic capital Pillar 2: Introduce mandatory or market system through improved semi-mandatory Pillar 2 mechanisms performance due to: Pillar 3: Targeted incentivization to Curbing volatility Leading possibly to individuals by the government higher valuations given lower perceived (e.g., institution of tax benefits for risk Pillar 3 schemes) Higher liquidity More liquidity likely to draw additional liquidity, positive “feedback” loop Improved governance Increased domestic (longer term investors) to hold management and BOD accountable for actions Source: FESE Members, March 31 st 2020 ATHEX GROUP Page 6
Fun Funding the the Ga Gap – Init Initia iativ ives - Accelera ration + + De Destin ination Acceleration Destination ΕΝ . Α SME Pre-Listing Support Program Offered by the EBRD in coop with Athex. Multilateral Trading Facility – Support preparation to access capital, but also ‘Alternative Market Operating Rules’ set offer operational, managerial and technical by ATHEX advisory services aimed at creating a value proposition that will support the route to the - Flexible framework for admission to capital market. trading for both equity and fixed income Roots Program - Coverage of fundraising needs for Roots aims to accelerate the growth of growth SMEs as well as early stage SMEs by ensuring their capital market companies readiness and access to financing opportunities. Source: FESE Members, March 31 st 2020 ATHEX GROUP Page 7
Fin Financing the the Economy - Cha hall llenges and and Key ey Rec Recovery Accele lerators rs Thank you ATHEX GROUP Page 8
Recommend
More recommend
