Montgomery Investment Management
now offers an income strategy through
a partnership with Aura Funds Management

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Aura Funds Management

Montgomery Investment Management has a Distribution Partnership with Aura Funds Management, a subsidiary of Aura Group. 

Aura Group was established in 2009 and has $1.04 billion under advice and management, employs 100 staff across the Asia-Pacific region and is privately owned by staff members and strategic investors.

Aura Funds Management has a track record of successful investment in online lenders who provide small short-term loans to small to medium enterprises (SMEs). The Aura High Yield SME Fund was established in August 2017 and was named in the top three performing Asia-Pacific-Based Credit Strategies by Preqin Pro in 2020. 

Brett Craig is both Portfolio Manager and a Director of Aura Funds Management. Hear Roger Montgomery and Brett Craig explain the partnership with Montgomery and introduce the Aura High Yield SME Fund.

 

 

Investment approach

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 Portfolio Manager, Brett Craig identified a market gap left by the banks, in the provision of funding to SMEs. With SMEs searching for alternative sources of credit beyond the major Australian banks, investors are afforded a niche opportunity to provide funding with a professional manager filtering the opportunities and assessing the risks.

The Fund invests in a select group of online lenders across various industries, providing an additional 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. As of 30 April 2022 and since inception, there has been no loss of capital in the Fund.

Credit income funds lend against the income, working capital or assets of a business. The Fund may invest in senior loan debt securities that are asset-backed SMEs, director guaranteed SME loans, and senior loans to Alternative Finance lenders.

Since its inception in August 2017, the Fund has delivered a 9.72% p.a. net return to investors in monthly income for 57 months.

Learn more about Montgomery’s partnership with Aura Funds Management and Brett Craig in this series of videos.
Watch our videos

Aura Funds Management has entered into a Distribution Partner Agreement (Distribution Agreement) with Montgomery Investment Management to distribute the Aura High Yield SME Fund, to its client base. Montgomery may receive a share of the fees you pay Aura Funds Management as well as potential equity in Aura Credit Holdings Pty Ltd ACN 656 261 200 (Aura Credit Holdings), a newly formed company within the Aura Group. Under the Distribution Agreement, the role of the Investment Manager of the Aura High Yield SME Fund will transition to Aura Credit Holdings once certain funds under management and revenue hurdles are met. This change will not trigger any changes to the trustee or the investment strategy of the Fund.

 

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