The vast majority of financial advisers and wealth managers expect to increase their clients’ exposure to the AIM market over the next 12 months, new research by TIME Investments has revealed.
The other 10% expect allocations to stay the same.
Almost all respondents (94%) believe that AIM listed companies and SMEs will be important to the country’s economic growth over the next two years.
Just 4% said they will become less important and 2% said they won’t be important at all.
TIME Investments head of equity funds Raymond Greaves said: “Our research shows that advisers and wealth managers have a positive outlook for AIM and recognise the renewed opportunity it presents after a tough couple of years.
“We believe that stabilising UK inflation and interest rates could be the catalyst for market recovery and renewed appreciation for some of the excellent smaller companies based and listed in the UK.”
The three most important reasons for the positive sentiment towards AIM is primarily because advisers believe it offers investors unrivalled access to exciting smaller companies with new technologies and new business models.
This is followed by the increasing support growing businesses critical to the UK economy receive from the government and thirdly, advisors believe that AIM-listed businesses could become acquisition targets by larger firms.
Other reasons cited by respondents included the fact that some businesses qualify for business relief, that AIM shares are exempt from stamp duty and that less analyst coverage offers more untapped investment opportunities.
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