Baker said: “A move to the Main List can result in a period of outperformance by companies’ shares as Index Funds, not present on the Aim market, build up their exposures.
"Recent examples of this phenomenon include Alpha Group International, which moved to the Main List in March, coinciding with a period of strong outperformance, and more recently Gamma Communications proposed move to the Main List.
"Alpha accompanied their announcement with a share buyback to help soak up any IHT portfolio outflows, and many of the AIM holdings in the MI Chelverton UK Equity Growth Fund have the balance sheet capacity to do something similar.”
James Henderson, who runs the Lowland investment trust and other mandates at Janus Henderson Global Investors, said: "The AIM market has lots of dynamic businesses and a few charlatans, you do need to go into it with your eyes open. But it performs a positive role in the economy as it allows earlier stage companies to have a listing without the long and onerous process of going on to the main market. But many of the companies there now could be on the main market, they have the governance and are proper businesses. It allows businesses such as those to raise capital, and that is important for the economy. I think more broadly, the AIM market has faced a perfect storm in recent years, with political uncertainty and pori economic outlook, and now the threat to the inheritance tax reliefs in the budget. But it has created a situation where there is extraordinary value on that market."
david.thorpe@ft.com
