The Aura High Yield SME Fund aims to provide attractive and reliable monthly income with target returns of 9%-12% per annum from a broadly diversified portfolio of loans to small and medium-sized businesses (SMEs) in Australia. The Fund invests in a select group of online lenders across various industries, providing a layer of diversification regarding the loans' characteristics in the portfolio and the borrower industry. By carefully analysing the merits of businesses requiring short term loans, deep due diligence can reduce risk while offering an attractive income yield. Since its inception, there has been no loss of capital in the Fund.
Four hundred individual loans to SME businesses represent the majority (80%) of the portfolio. The average loan size is around $104,104 with an average term of 3-6 months. The remaining 20% is invested in a portfolio of over 10,000 SME loans. This generally means any single borrower defaulting should have a negligible impact on the overall portfolio return.
Why Invest
| Number of loans | 12,700 SME borrowers via seven lending platforms |
| Style | Income |
| Benchmark | RBA Cash rate plus 5% |
| Fund fact sheet | Download |
Montgomery Investment Management has a Distribution Partnership with Aura Credit Holdings Pty Ltd, a subsidiary of Aura Group.
Investment Manager: Aura Credit Holdings Pty Ltd (ACH)
Brett Craig, Director Private Credit, ACH, is responsible for portfolio management and asset origination for both the Aura High Yield SME Fund and the Aura Core Income Fund.
ACH is the private credit division of Aura Group. ACH is owned by Brett Craig, Director Private Credit, Aura Credit Holdings, Aura Group and Montgomery Investment Management.
Founded in Australia in 2009, Aura Group has more than 1 billion under advice and management as of 31 January 2024. It is privately owned by staff members and strategic investors.
Aura High Yield SME Fund wins best fixed interest fund second year running at the HFM Asian performance awards
We're thrilled to share the exciting news that the Aura High Yield SME Fund has won the fixed income fund of the year award at the prestigious 2023 HFM Asian performance awards!
This marks an incredible second consecutive win for the private credit fund, highlighting its consistent excellence.
In this video Brett Craig explains the emergence of SME debt capital as an emerging asset class for investors seeking income and returns that have little to no correlation with public markets. Whilst SMEs in Australia continue to make a significant contribution to the economy, they have not been well supported by the banking sector.
Brett Craig spoke with James Marlay from Livewire as part of their 2023 Income Series to share his views on the drivers for this income opportunity, how the current economic environment is impacting various sectors of the economy and where he is seeing opportunities to generate stable income.
The Aura High Yield SME Fund has been graded by Foresight Analytics as Very Strong.
The Aura High Yield SME fund has received a Commended rating from Evergreen Ratings.
Source: ASX 200 (^AXJO) Adjusted Close Historical Data
Source: S&P Global - S&P Australia High Yield Corporate Bond Index Historical Data
*Past performance is not an indication of future performance
| Jul | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |
| 2017/18 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
| 2018/19 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2019/20 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2020/21 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2021/22 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2022/23 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2023/24 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Source: Aura High Yield SME Fund Performance Update, July 2022. The Fund’s inception date is August 2017. Past performance is not a reliable indicator of future performance.
| Aura High Yield SME Fund | RBA cash rate plus 5% p.a. (Benchmark) | RBA cash | Out/Under Performance | |
|---|---|---|---|---|
| 1 month | 0.77% |
0.70% |
0.31% |
0.07% |
| 3 months | 2.38% |
2.26% |
1.01% |
0.12% |
| 6 months | 4.78% |
4.60% |
2.05% |
0.18% |
| 12 months | 9.76% |
9.47% |
4.16% |
0.29% |
| 2 years (p.a) | 9.05% |
8.41% |
3.15% |
0.64% |
| 3 years (p.a) | 9.00% |
7.34% |
2.12% |
1.66% |
| 5 years (p.a) | 9.16% |
6.71% |
1.52% |
2.45% |
| Since Inception | 83.10% |
53.28% |
10.42% |
29.82% |
| Compounded Annual Return | 9.62% |
6.70% |
1.52% |
2.92% |
Note: Performance net of fees and expenses. Returns assume reinvestment of all distributions. Past performance is not an indicator of future performance.
The cumulative return is the total return since inception and assumes reinvestment of all distributions.
1. Inception date: 1 August 2017.
2. The Benchmark is the RBA Cash Rate plus 5% p.a.
Aura Funds Management has distributed the following income since inception:
| Jul | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |
| 2017/18 | 0.84% | 0.87% | 0.91% | 0.89% | 0.93% | 0.93% | 0.84% | 0.93% | 0.86% | 0.92% | 0.88% | |
| 2018/19 | 0.91% | 0.90% | 0.87% | 0.90% | 0.86% | 0.90% | 0.82% | 0.79% | 0.85% | 0.79% | 0.84% | 0.83% |
| 2019/20 | 0.75% | 0.74% | 0.75% | 0.78% | 0.72% | 0.72% | 0.73% | 0.73% | 0.75% | 0.72% | 0.73% | 0.72% |
| 2020/21 | 0.74% | 0.76% | 0.74% | 0.73% | 0.72% | 0.74% | 0.75% | 0.67% | 0.74% | 0.73% | 0.74% | 0.65% |
| 2021/22 | 0.75% | 0.72% | 0.71% | 0.71% | 0.71% | 0.66% | 0.73% | 0.63% | 0.62% | 0.64% | 0.60% | 0.61% |
| 2022/23 | 0.67% | 0.67% | 0.68% | 0.70% | 0.68% | 0.73% | 0.79% | 0.68% | 0.79% | 0.74% | 0.75% | 0.78% |
| 2023/24 | 0.81% | 0.80% | 0.79% | 0.77% | 0.77% | 0.81% | 0.78% | 0.77% |
Aura Funds Management may also notify investors from time to time that investors may participate in an arrangement to re-invest their distributions into new Units of the Fund. There may be periods when net income could be negative, and no distribution is made.
You should read the Information Memorandum (IM) before deciding to acquire units in the product.
Units in the Aura High Yield SME Fund (Fund) are issued by Aura Funds Management Pty Ltd (ABN 96 607 158 814, Authorised Representative No. 1233893 of Aura Capital Pty Ltd (ABN 48 143 700 887, AFSL No. 366 230)) (Aura). Aura is the trustee of the Fund and a subsidiary of Aura Group Pty Ltd.
This information is for wholesale or sophisticated investors only and is provided by Montgomery Investment Management Pty Ltd (ABN 73 139 161 701, AFSL No. 354 564) as the authorised distributor of the Fund.
An investment in the Fund must be through a valid paper or online application form accompanying the Information Memorandum.
The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. Before making an investment decision you should read the Information Memorandum and (if appropriate) seek professional advice from a licensed financial advisor to determine whether the investment is suitable for you.
The investment returns or repayment of capital of the Fund are not guaranteed.
The value of an investment may rise or fall and you may risk losing some or all of your capital. Past performance is not a reliable indicator of future performance.
The underlying investment philosophy of Aura Credit Holdings is to drive active strategies that provide strong regular income. The team maintains a focus on capital preservation through counterparty selection, deal structuring, asset security, diversification, and portfolio construction. The investment team comprises of seasoned professionals with skills and experience to deliver opportunities across the risk spectrum, driving risk-adjusted returns for our investors.
Brett Craig is the Portfolio Manager of the Aura High Yield SME Fund and the Aura Core Income Fund and is supported by a team of investment analysts, Brian Ho, James Chapman and Natalie Kolenda.
Brett Craig leads the daily management of the Fund.
After accessing the Information Memorandum and reading in full the investment objectives and risks of investing in the Aura High Yield SME Fund:
Complete the online application form at Olivia 123 and ID verification online (approx. 10 minutes)
Submit the completed application form to the Administrator online
Transfer the funds and an investment confirmation will be issued by the Administrator
If you wish to make an additional investment (top-up) an existing investment in the Aura High Yield SME Fund, please see the instructions here.
Download the fund information pack or if you would prefer to talk it over, call David Buckland or Toby Roberts on 02 8046 5000 to discuss the Aura High Yield SME Fund in more detail.
Our partnership with industry-leading superannuation provider, netwealth, can help.
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