Interim Management Statement

AURORA INVESTMENT TRUST Plc

Interim Management Statement 31st December 2008


Directors:

Alex Hammond-Chambers (Chairman); James Barstow FCA; David H. Hunter;
Richard Robinson

Fund Manager:

James Barstow of Mars Asset Management Ltd

Year End:    28th February

Dividend:     Final only. Latest dividend 3.15p.  Payment 11th July
2008

Benchmark:   All-Share Index

Objective:

Capital Appreciation through investments listed mainly on the London
Stock Exchange.

Policy (Summary)

To invest primarily in equities but with some exposure also to  Fixed
Interest.  In  general the  portfolio will  be weighted  towards  the
larger rather than smaller capitalised stocks.  A distinctive feature
is an emphasis on investments in companies with exposure to economies
growing at a faster rate than the UK.



Largest Holdings    31st December 2008


                                £ 000's   %
BTG                              1662   10.2
Scottish & Southern Electricity  1507    9.3
AVIVA                            1365    8.4
BP                               1182    7.3
ARRIVA                           1052    6.5
Barclays 9.75% Ccv               1010    6.2
Prudential                        830    5.1
BG Group                          717    4.4
HSBC                              662    4.1
Venture Production                637    3.9

                                 Total  65.4%


Sector Analysis


                                     £ 000's    %

AIM                                      442  2.7
Banks Retail                           2,053 12.6
Electricity/Water                      2,268 13.9
Financials(other)                        378  2.4
Fixed Interest                           814  5.0
Information Technology                   396  2.4
Insurance                              2,202 13.6

Mining                                 1,191  7.3
Oil & Gas Exploration and Production   3,033 18.6
Aerospace                                353  2.2
Software                                 424  2.6
Pharmaceuticals                        1,662 10.2
Transport                              1,052  6.5


Performance


                         NAV (ex income)   FTSE All-Share
                                       %                %
Since Launch to 31/12/08           +23.4             +2.5
5 years to 31/12/08                -30.9             -0.1
3 years to 31/12/08               -45.8             -22.4
1 year to 31/12//08                -43.8           - 32.8
4 months to 31/12/08               -36.5           - 23.0



            29/08/08   31/12/08

Share price  156.25p     87.75p
Discount       17.8%      27.3%



Review

The four month period under review witnessed unprecedented levels  of
turmoil in financial markets with turbulence moving globally  through
credit, equity, commodity and currency markets. In brief, the  period
encompassed probably  the  most rapid  synchronised  global  economic
contraction that has ever occurred, aided  by the collapse of a  host
of erstwhile well respected financial institutions.

The FTSE All-Share continued to  fall relentlessly from the start  of
the period  until late  November,  when it  began  to make  a  slight
recovery from such a deeply oversold position towards the end of  the
year. Such  adverse  conditions  proved  a  most  harsh  and  testing
environment for  a  Growth  oriented investment  trust  in  which  to
operate.  As  the  intensity  of   fear  rose  so  sentiment   turned
increasingly negative; investors became ever more defensive. The FTSE
All-Share fell by 23.0% and the NAV by 36.5%.

In brief,  the  main objective  behind  the transactions  during  the
period was  to reduce  the  portfolio's exposure  to the  UK  banking
sector in  the light  of its  parlous finances,  replacing them  with
holdings in companies  such as Aviva  and Prudential, whose  dividend
paying ability was less  impaired. The heavy  exposure to the  mining
sector was  also severely  reduced  on account  of the  dramatic  and
unexpected slow-down in the Chinese and other BRIC economies.

Outlook

Interest rates around the world  have been slashed in recent  months,
in particular by the Federal Reserve Board of the USA and the Bank of
England along with the creation of bailout packages by governments in
an attempt to mitigate the impact of the recession. Further  measures
are  almost  inevitable  in  the  light  of  the  rapid  increase  in
unemployment which is still accelerating.

The imminent  start  of  the corporate  reporting  season  will  show
falling profitability  and  increase pressure  on  dividend  payouts.
Against such a  background it  is unlikely that  market indices  will
make much progress until the outlook becomes clearer.

Meanwhile, the company aims to generate sufficient dividend income in
order  to  maintain  a   progressive  dividend  policy  while   still
supporting growth companies  which can  survive and  even prosper  in
such adverse conditions.

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