BR report 2018

56 57 INDUSTRY ANALYSIS OVERALL MARKET CHANGES AND DEVELOPMENTS There were seven new BR offers that opened in 2017/18. ‘Historical offers’ refer to BR offers opened before April 2017. ‘2017/18 offers’ refers to new offers open between April 2017 and March 2018. Where the term ‘capital preservation’ is used, this refers to the way providers describe their offers in their marketing literature. MARKET COMPOSITION BY INVESTMENT STRATEGY MARKET COMPOSITION BY INVESTEE COMPANY TYPE Although the total composition of AIM quoted companies currently stands at nearly 51% of the market, when it comes to new offers opened in 2017/18, AIM only accounts for just under 29% of the market - this is lower than the proportion of AIM quoted historical offers (52.4%). In recent years, there has been a significant rise in the amount of AIM quoted BR offers. However, the rate of growth in this area appears to be slowing down somewhat. AIM shares were eligible to be held in an ISA since 2013, but the initial excitement surrounding tax-free earnings on these securities may be plateauing. CAPITAL PRESERVATION & INCOME CAPITAL PRESERVATION & GROWTH GROWTH GROWTH & INCOME 2017/18 OPEN OFFERS HISTORICAL OFFERS 2017/18 OFFERS 17% 17% 33% 33% HISTORICAL OFFERS 11% 22% 34% 33% AIM LISTED ASSET-BACKED SEED/EARLY/ LATER STAGE LATER STAGE 20% 0% 40% 60% 80% 100% 1.6% 1.6% 71% 52% 29% 44% Managers of 83% of 2017/18 offers state that their offering has a Growth element to its strategy. This applies to 89% of historical offers, which is a slight increase on last year’s figures.. Last year, all new offers were dominated by either pure Growth or Growth and Income strategies. This year there has been an increase in asset backing, with five out of the seven new offers applying this strategy - which is more in line with historical offers.