AIM market performance beats mainstream indices
AIM market performance has much to commend it. As AIM hits its 25th anniversary, Oliver Brown of fund managers RC Brown assesses how the market has developed and is performing.
The AIM market, as with all equity markets, has had a volatile year. On the face of it, the AIM market performance might seem surprising, as during a market crash, investors typically expect smaller companies to see the sharpest falls as many head for the safer haven of large caps, which often have broader and more internationally diversified businesses. In 2008 the AIM market fell 62%, significantly underperforming the FTSE All Share which fell 30%. Investors dumped smaller, less developed businesses, scared that the banking crisis would wipe them out.