Fund managers oppose the London Stock Exchange's plans to launch Techmark – a separate market for growth companies. A survey shows 72.5% of smaller company fund managers do not believe the city needs a dedicated market for growth companies.
“We only need one market which makes it clear where things lie. The market can adapt to growth companies”, was a typical fund manager view in the survey by investment bank Granville. The survey involved 40 fund managers investing in smaller-cap stocks and 30 quoted IT companies.
Fund managers thought difficulties facing growth companies should be addressed through change within the LSE itself. Nearly all of them were negative about AIM and this made them sceptical about the success of Techmark. They also felt a specialist growth market would be too volatile.
However, 63% of IT companies favour such a market, the survey found.