A 3,500pc rise or a 96pc fall: the ideal and worst Aim shares

One year soon after investors had been permitted to hold shares listed on the junior market in an Isa we name the very best and worst-performing Aim shares


Final August a lengthy-awaited rule adjust permitted investors to put shares in firms listed on London’s junior stock marketplace in Isas for the very first time.

These firms, listed on a stock industry referred to as Aim, are generally little companies and as a result much riskier than the massive blue-chip firms located in the FTSE a hundred. To encourage investors to back fledgling businesses, Aim shares held for two years are exempt from inheritance tax.

Allowing Aim shares in Isas, so they could also be exempt from income and capital gains taxes, was expected lead to a surge in demand from investors and in accordance to brokers this is exactly what has took place.

Interactive Investor, the fund store, referred to as the degree of demand for Aim shares “significant”. It explained it had noticed a 43pc improve in Aim trading above the previous 12 months.

Because the rule modify the common share on the Aim marketplace is up by 7pc, with elevated trading action driving share charges greater. This outstrips the FTSE 100’s return in excess of the identical period – the blue-chip index has posted a tiny reduction.

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But as the tables below display, the variation in returns among the best and worst performers is enormous.

Uncommon Earth Minerals has noticed its shares rise by more than 3,000pc in other phrases a saver would have manufactured at least thirty occasions their money if they bought in a 12 months in the past.

Other shares in the prime 10 have produced enormous gains the second ideal performer is Alpha Returns, an investment organization that buys shares listed in Asia, although in third area is Crawshaw Group, which owns a chain of butcher’s stores in Britain.

Leading doing Aim shares

Share value functionality in excess of one particular yr (from August five 2013)

Uncommon Earth Minerals


Alpha Returns


Crawshaw Group


GW Pharmaceuticals


Rose Petroleum


Trakm8 Holdings


Frontier IP Group


Kennedy Ventures


Falanx Group


Leni Gas &amp Oil


At the other end of the table, nevertheless, there are some shares that have posted massive losses. Shares in Leyshon Sources, the gold miner, have shed 96pc. This hefty fall would have virtually wiped out an investor who had purchased shares in the firm a 12 months ago.

All of the shares in the bottom 10 have lost much more than 80pc of their value, highlighting the dangers of investing in stock marketplace minnows. The bulk of the shares are pharmaceutical or vitality companies.

But the most recognisable identify in the bottom ten is “cloud” technology company Outsourcery, which is owned by Dragons’ Den star Piers Linney. Speaking to The Agenciesin June Mr Linney blamed his company’s lagging share value on the spate of overpriced engineering flotations in current months.

Since its inception on January two 1996, the FTSE Aim All Share index has fallen by 22pc. The difficultly of selecting out winners has led some commentators to call Aim the Wild West of the stock marketplace.

Danny Cox of Hargreaves Lansdown, the broker, explained: “The distinction amongst the ideal and worst-doing shares demonstrates the volatility and speculative nature of investing in Aim, with assets, vitality and wellness care becoming dominant themes. Investors need to restrict their publicity to no a lot more than 5pc to 10pc of their portfolio.”

One more issue to view out for is that as effectively as becoming riskier, these small shares are more difficult to promote as there are fewer consumers in the industry for these shares.

The worst executing Aim shares

Share value performance over 1 12 months (from August 5 2013)

Leyshon Assets




Wildhorse Power


Optibiotix Wellness




YOLO Leisure And Technological innovation


Premaitha Wellness


Hightex Group




Beacon Hill Resources


Source: Hargreaves Lansdown

Additional reporting by Jenner Sheldrake

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