| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 126.62 | -54 |
| Intrinsic value (DCF) | 94.40 | -65 |
| Graham-Dodd Method | 2.09 | -99 |
| Graham Formula | 14.04 | -95 |
Aurora Investment Trust plc (ARR.L) is a UK-based open-ended equity mutual fund managed by Phoenix Asset Management Partners and launched by Mars Asset Management Limited. Focused on the UK public equity markets, the fund invests primarily in large-cap stocks listed on the London Stock Exchange, with additional exposure to companies benefiting from faster-growing economies outside the UK. The fund maintains a diversified sector approach while benchmarking its performance against the FTSE All-Share Index. Established in 1997, Aurora Investment Trust combines equity securities with selective fixed-income investments, aiming for long-term capital growth. With a market cap of approximately £284 million, it appeals to investors seeking UK-centric exposure with a growth-oriented tilt. The fund’s strategy emphasizes stability through large-cap holdings while targeting incremental returns from high-growth economic regions.
Aurora Investment Trust plc presents a mixed investment case. Its focus on UK large-cap equities provides stability, but the fund’s negative revenue and net income in recent reporting periods raise concerns about short-term performance. The fund’s beta of 1.74 suggests higher volatility compared to the broader market, which may deter risk-averse investors. However, its dividend yield (3p per share) and exposure to growth-oriented economies could appeal to income-focused investors with a longer-term horizon. The absence of debt and a cash position of £17 million offer some financial flexibility. Investors should weigh the fund’s underperformance against its strategic positioning in recovering UK markets and its potential to capitalize on global growth trends.
Aurora Investment Trust operates in a competitive UK investment trust landscape, where its primary differentiator is its hybrid focus on UK large-caps and growth economies. The fund’s benchmark alignment with the FTSE All-Share Index positions it as a core UK equity holding, but its active management approach under Phoenix Asset Management adds a layer of selectivity. Competitors often specialize either in pure UK equity exposure or global diversification, whereas Aurora’s dual emphasis attempts to balance stability and growth. Its lack of leverage is a conservative strength but may limit returns in bullish markets compared to geared peers. The fund’s negative recent earnings highlight challenges in stock selection or sector allocation, suggesting room for strategic refinement. While its large-cap focus reduces idiosyncratic risk, the fund’s performance hinges heavily on the UK market’s recovery and Phoenix Asset Management’s ability to identify outperforming growth-linked equities.