AIM report hands

As the political machinations of Brexit rumble on, one area that might offer a surprising level of stability is the Alternative Investment Market, our latest Industry Report has found.

While the London Stock Exchange’s junior market is generally seen to be volatile, those investors who look at the index over the long term can find a resilient market that can offer good growth opportunities, if the right stocks are picked. 

With uncertainty the watcword emanating from Westminster and spreading across the UK, our 2019 AIM Industry Report has shown that the market faced a similarly difficult period in late-2018, when global stocks suffered a series of downturns and a number of factors combined to hit AIM particularly hard. However, it bounced back over the first half of 2019, demonstrating the underlying resilience in the market and the potential for it to grow even further once the Brexit debates are out of the way.

Furthermore, the adviser survey carried out as part of the report revealed that 98% of advisers expect their use of AIM to either increase or remain the same over the next two years, suggesting that they recognise the market’s potential.

Part of the reason for this could be down to another of the report’s findings: there is significant geographical diversification, with over half of AIM quoted companies having substantial overseas operations, meaning that these companies are well-placed to ride out the current Brexit-induced storms.

Indeed, the breadth of the AIM market, both in terms of its companies’ geographic reach and the types of business that they are engaged in, is another significant strength. As Marcus Stuttard, Head of AIM at London Stock Exchange, put it in the report’s Opening Statement:

“Success stories come from a wide variety of sectors.”

And as for picking the winners, the good news for financial advisers is that our analysis of Business Relief offers suggests that the majority of managers in this area have consistently  outperformed the overall AIM market over the past three years. 

To find out more about the AIM market and to get a clear snapshot of what has been going on in this area over the past 12 months, simply click here to download our AIM Industry Report 2019 free of charge.


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