Fund Profile

Disclaimer

Disclosure – Independent Investment Research

This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.

Overview
A new version of this profile is available. View Latest
Overview

Aurora Investment Trust is a highly-concentrated portfolio of UK-listed companies run with a clear bottom-up, value style. It has been run by Phoenix Asset Management since January 2016, which has marked a significant change of fortunes with net assets rising from only £15m to £125m, largely through share issuance.

The managers seek to invest in UK-listed businesses of all sizes to deliver strong absolute and relative returns, although they are able to invest up to 20% overseas, and up to 10% in unlisted securities. They interpret the work of Warren Buffett etc, and look to buy companies at valuations which they think are fundamentally undervalued by the market. They are both classic “value” investors, but also aim to work with some companies in the portfolio actively to help engineer a turnaround.

Their stock-picking focus is entirely bottom-up led, and a hallmark of their process is to run highly-concentrated portfolios (as of the end of March 2019, they hold just 16 stocks). They place great emphasis on doing their own homework on businesses, including meeting company management, customers and competitors and aim to own companies that are deeply out of favour. The team claim that they won’t buy shares unless a company is trading at less than half what they consider its intrinsic value is.

This focus on value is clearly highlighted by the Morningstar style analysis, with zero percent of the portfolio in what they identify as “growth”. This is the lowest weighting of any of the UK All Company trusts. Perhaps unsurprisingly therefore, the portfolio is currently packed with domestic economically-sensitive stocks such as Lloyds, Tesco, Morrisons and Sports Direct. The managers topped-up holdings in UK housebuilders during the sell-off in the latter part of 2018.

The managers' long-term track record on their open-ended, offshore Phoenix UK fund, is very strong, having delivered a net return of 509.8% between May 1998 to 31st March 2019, compared to a return of 186% from the FTSE All Share, representing outperformance of 323.7%. Since taking the reins of Aurora, the trust has marginally underperformed relative to the FTSE All Share, but beaten its average peer in the UK All Companies investment trust and open-ended sectors. However, it is worth noting that most of the relative underperformance was generated during the managers’ first six months in the Brexit vote induced sell-off.

When Phoenix took over management of the trust, the share price rating significantly improved, and has consistently traded on a premium since then. The board has been very active in issuing shares, which means the trust now has net assets of £125m.

Continue to Portfolio

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.