Asset AllocatorJun 5 2025

Can anything save the Aim?

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Can anything save the Aim?
© REUTERS

The Aim turns 30 this month and, much like everybody else who passes that milestone, there’s some serious reflection to be done on its life choices — and its future.

The UK’s junior market, in which the smallest listed companies reside, has had a torrid few years and some we’ve come across a staggering new statistic which suggests it’s only getting worse for British micro-caps.

61 companies have announced plans to leave the Aim over the coming months, according to the number-crunchers at Aberdeen — representing more than £12bn of lost market capitalisation.

If all moves go ahead, they suggest the market itself will shrink by one-fifth — yikes.

The reasons for the exodus are threefold: some are moving to London’s main market, others are delisting as it’s too expensive while the rest have been bought up.

Things have become so dire, in fact, that fund managers are speaking out against the decline.

“When thinking about the health of London’s junior market, it is a very ominous sign,” said Abby Glennie, co-manager of the Aberdeen UK Smaller Companies fund.

“Eventually we will be left with a tiny, illiquid market.”

She added that without large-scale institutional backing, there will be no pipeline to nurture the large-cap companies of tomorrow.

As mentioned above, a popular choice for companies is choosing to list on the main market through the FTSE 250 — a sort of promotion to the big leagues, if you like.

But when we spoke to City Asset Management’s Aim head David Willcox not long ago, who took issue with the notion that making this move automatically leads to an immediate shift in fortunes for the firm.

“I’m quite sceptical that there’s a wall of additional capital that’s going to come to you as a FTSE 250 stock at the bottom that isn’t available to you already, because your investor base is going to be broadly the same,” he said.