THE PERFORMANCE OF PROPERTY COMPANIES ON THE AIM STOCKMARKET

The Alternative Investment Market (AIM) in the UK was establised in 1995 and has developed into the world's leading stockmarket for smaller, growth companies for both UK and international companies. At November 2009, the AIM stockmarket comprised 1322 companies with a total market cap of 57 billion pounds. This included 84 property companies with a market cap of 5.4 billion pounds. The purpose of this paper is to assess the performance of the property company sector on the AIM stockmarket over July 2005-December 2009. The risk-adjusted performance and portfolio diversification benefits of property companies on the AIM stockmarket will be assessed against the overall AIM stockmarket,other AIM sub-sectors and related asset classes. The impact of the Global Financial Crisis on the performance of property companies on AIM will also be assessed.