Two years ago the London Stock Exchange (LSE) launched the
Specialist Fund Market (SFM), its first new market since Aim
back in 1995. The SFM was set up and touted as the first public
capital market specifically designed for specialist investment
vehicles, in the belief that there was a gap in the market for
a trading platform that properly accommodated the needs of the
investment fund industry.
Unfortunately, this coincided with a severe recession that
saw capital markets grind to a virtual halt. Like all other
markets, the SFM has suffered, with only five funds being
admitted to trading by September 30 2009. The question is
whether its failure to attract more is down to market
conditions, strong competition from other markets or a
fundamental flaw in its structure.
Recent flurry Although there was little activity on the SFM
in its first two years, there has been a flurry of