We take a closer look at the five best AIM performers from the past five years.
Chancellor George Osborne moved to revive interest in AIM stocks when he scrapped the 0.5% stamp duty levied on growth market shares in his recent Budget.
Even though the tax was small, managers already tapping the Alternative Investment Market welcomed the news, as some also saw it as a move towards greater relaxation of the rules around growth market investing.
“It is a start. Hopefully, in the Autumn Statement, the government’s review of allowing AIM stocks in to ISAs will go ahead. It could be very beneficial,” said Andrew Hough-Smith, investment manager at WH Ireland.
The five stocks you should have owned
But which AIM stocks should have featured in your portfolio? We take a look at the five best performers from the last five years.
Investment managers are rarely the most fashion conscious bunch, so this online clothing store may well have slipped under the radar.
Initially begun as a website for celebrity fans to find items they had seen worn by the stars in films, ‘As Seen On Screen’ has become a dominant player in online retail, shipping to 230 countries and has local websites in Germany and France.
So important is its presence that high street brands allow their products to be stocked on the site alongside niche designers and ASOS’ own brand ranges.
Listed on AIM in 2001, its share price has had a phenomenal run over the last five years. Shares traded at 299p in October 2008 and peaked at £33.47 in early April, as ASOS unveiled plans to launch own-language websites in China and Russia.
2 Mobile Streams
For a stock that was priced at 2.2p in 2008, online entertainment provider Mobile Streams has done incredibly well. Its share price has risen to trade around 86.5p in March this year after it trebled sales.
The company provides entertainment for mobile phones, such as apps, games and e-books and has contracts with companies around the world. Mobile Streams has been particularly popular in Latin America and the company has a solid subscriber base in Argentina, Mexico and Colombia.
Theme parks are not an obvious place to find investment opportunities but Lo-Q, which provides queue jumping technology, has made a return of around 2,175% over the last few years.
Its queue jumping system is popular at theme parks as it allows customers to log their place in the queue and return when they are close to the front of the line.
The system has been of real benefit to theme park operators, since customers’ main gripe is the length of time spent waiting for a ride. Moreover, if park-goers are not waiting in line, they are likely to be wandering the park spending money.
Lo-Q's share price has slumped in recent weeks. Nevertheless, over the last five years its price has risen from just 26p in early 2008 to 667.5p on 18 March.
The Aviva Investors Multi-asset Funds (MAF) target equity risk rather than absolute volatility. Thomas Wells, Multi-asset Fund Manager, explains that while absolute volatility varies significantly over time, the inherent risk of investing in equities remains relatively constant.
Will remain until completion of OM's managed separation
Dispute over structure of combined group
Financial Guidance and Claims Bill
Favorable tax treatment