Investors on the Alternative Investment Market (Aim) are suffering a crisis of confidence, says Danny Fortson in The Independent on Sunday. The Aim All-Share index has fallen by 25% since May, as a glut of new listings led many to re-evaluate their position in the market. "The quality isn't there," says one anonymous market source, while Andy Smith, manager of biotech fund SV Life Sciences, is more blunt: "Investors are participating in a bloodbath waiting to happen."
The issue for investors is one of over-supply and under-scrutiny. Some 1,500 companies have listed on the Aim since its inception in 1995. Most recently, US firms, frustrated by stringent compliance requirements in their home market, have fallen over themselves to list in London instead. But with new issues doubling in the last three years, investors are becoming increasingly demanding, says Yvette Essen in The Daily Telegraph.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
What is a trust – and should you use it to avoid inheritance tax?Trusts are surging in popularity as a way to avoid inheritance tax, according to financial advisers on the frontline of estate planning. We look at what trusts are and if they are right for you.
-
What will be the consequences of Donald Trump’s "One Big Beautiful Bill"?The US president’s "One Big Beautiful Bill", an extraordinary mix of tax cuts and spending plans, has made it through both houses of the US Congress. What will be the consequences?
