What's big in SMID Europe: Adding Canal+ to the SMID Cap Europe Best Ideas List

Research evidence excerpt

What's big in SMID Europe: Adding Canal+ to the SMID Cap Europe Best Ideas List

SMID Cap Europe Best Ideas List

The SMID Cap Europe Best Ideas List (the “List”) represents a list of small and mid-cap

stocks (including depositary receipts) with a market capitalization when first added to

the List of under EUR12 billion, which the SMID Cap Europe Best Ideas Committee (the

“Committee”) believe will outperform the MSCI Europe Mid Cap Index (MXEUMC) over

the next 12 months based on robust well-proven business models with a clear track

record of growth and value creation. The List must be comprised of at least 15 stocks

chosen from the universe of stocks (including depositary receipts) covered and rated

“Buy” by BofA Fundamental EMEA Equity Research Analysts. In constructing this List,

the Committee will canvass the views of our EMEA fundamental equity analysts to

identify stocks for inclusion in the List.

Once selected, it is the intention that a stock will remain on the List for approximately

12 months, unless the Committee removes the stock in accordance with its Charter,

including removal if the stock is no longer rated a “Buy” or if there are other

circumstances likely to affect the performance or desirability of the stock on the List. If

the firm ceases to maintain a fundamental recommendation on a stock, that stock may

be removed from the List in accordance with the Committee’s Charter without

necessarily being replaced. If there are any changes to the List during the year, a note

will be published promptly setting out the change. The Committee meets regularly to

monitor the market and the performance of current stocks on the List as well as to

consider the addition of any new stocks which may proposed by individual analysts in