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The best and worst small company funds

Kit Klarenberg
Written By:
Kit Klarenberg

The Alternative Investment Market (AIM) turns 20 today. FE Trustnet looks at the best and worst performing UK smaller companies funds over the past five years.

Two decades on from its launch, this sub-market has churned out thousands of companies looking to raise equity but without the rigours of a full listing.

The market has supported over 3,500 AIM companies over the past twenty years, some of which have moved on to the main market.

For investors looking for exposure to AIM shares but without the worries of DIY stock picking and the relative safety of an asset manager who knows the market, considering small company funds is one option.

But as is the case with most things in life – not all small cap funds are created and run equal, especially as the difference between the best performer and the worst is a notable 250 per cent.

The best performer over the past 5-years has been FE Alpha manager, Alex Wright’s Fidelity UK Smaller Companies fund, awarded 5 FE crown ratings. The fund has consistently outperformed its sector the IA UK Smaller Companies since 2012. The fund is currently 20 per cent invested in AIM.

The IA UK Small Caps sector has returned around 112 per cent over the same period, FE Trustnet data shows.

The worst performer, on the other hand, has underperformed its sector by 77 per cent. The SF Webb Capital Smaller Companies Growth fund has shed 52 per cent over the past 5-years. The unit price of the fund has shed around 1.9 per cent in May alone. Just under 80 per cent of this fund is invested in AIM.

TM Progressive UK Smaller Companies, Majedie UK Smaller Companies and C

FIC Octopus UK Micro Cap Growth fund all join the worst performer in the bottom of the pile.

Best Performing

Fidelity UK Smaller Companies A Acc in GB 193.94
Livingbridge VC LLP Wood Street Microcap Investment in GB 182.90
Schroder UK Dynamic Smaller Companies A in GB 179.34
AXA Framlington UK Smaller Cos R Acc in GB 178.02
R&M UK Equity Smaller Companies A Inc TR in GB 176.19

Worst Performers

SF Webb Capital Smaller Companies Growth A in GB -52.26
TM Progressive UK Smaller Companies B TR in GB 72.09
Octopus Investments CFIC Octopus UK Micro Cap Growth A Acc in GB 81.23
Ignis Smaller Companies A Inc TR in GB 82.68
Henderson UK & Irish Smaller Companies A Acc in GB 93.42

Source: FE trustnet