AIM for the future

by Eric Bright
AIM for the future

During 2017 we saw our AIM IHT Portfolio perform very well and despite the recent dip in global equity markets, the AIM market has continued to perform well compared to its larger cousins. At the time of writing, the FTSE 100 has fallen around 8% this year with the AIM market falling around 3%.

We have previously reported that AIM is perhaps a fairer barometer for UK companies and we can take positives from its recent performance even though it is in the red. AIM companies are predominately UK focused, with the majority of their operations taking place here. Even the successful foreign exporters (see Fevertree Drinks) are prospering with their very British brand.  Therefore, we see recent performance as a sign that there is continued confidence in UK companies, particularly from institutional investors who have the ability to really move markets.

In our previous newsletter we discussed the merits of Eckoh, a safe payments technology firm.  However, we have seen some of our more old-fashioned firms performing well in recent months. Take Michelmersh Brick, a specialist brick manufacturer, for example. They are thriving on the growing demand for their high-quality bricks and are a sign of the growing confidence in UK manufacturing. At Reyker, we are keen to explore this trend and hope to utilise some investment opportunities in our portfolios in the coming months.

As always, we encourage investors to remember that AIM shares can be volatile and share prices can change quickly. A long-term view is essential. Investors must have faith in the companies they are investing in and be able to ride out swings in valuation. Those brave enough to ride out the AIM market’s 10% fall at the start of 2016 would be comfortably richer by now. Our message to investors, as always, is to keep calm and carry on and think of our AIM service when looking to invest your ISA allowance.

Please see our brochure.