The Alternative Investment Market (AIM) is turning 20 today and to celebrate FE Trustnet is looking at the top and worst performing UK smaller companies funds over the past 5-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 stockpicking and the relative safety of an asset manager who knows the market, considering funds with exposure to smaller companies 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%. 

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% invested in AIM. 

The IA UK Small Caps sector has returned around 112% over the same period, FE Trustnet data shows. The worst performer, on the other hand, has underperformed its sector by 77%. The SF Webb Capital Smaller Companies Growth fund has shed 52% over the past 5-years. The unit price of the fund has shed around 1.9% in May alone. Just under 80% of this fund is invested in AIM. 

TM Progressive UK Smaller Companies, Majedie UK Smaller Companies and CFIC Octopus UK Micro Cap Growth fund all join the worst performer in the bottom of the pile.