The Aura Core Income Fund (the Fund) aims to preserve capital and provide a stable monthly income through exposure to a diversified pool of Australian private debt assets, predominantly made up of small to medium enterprise loans. The net asset values of the Fund will be determined monthly, and the Fund intends to distribute net income to investors each month.
The Fund aims to achieve a target return of 3.5%–5.5% per annum above the Reserve Bank of Australia (RBA) Cash Rate, net of fees and costs, through the economic cycle. As of 7 November 2023, the RBA Cash Rate is 4.35%, equating to a current target return of 7.85%-9.85%[1] per annum net of fees and costs. The Fund’s total return may rise, or fall based on, amongst other things, performance in the underlying loan assets and on movements in the RBA Cash Rate. The Fund’s target return is only a target, and the actual return of the Fund may differ from the Fund’s target return.
The Fund aims to invest in a diversified pool of Australian private debt investments. Investments will be made via warehouse securitisation deals, notes or other instruments for business and consumer loans, as well as direct lending to businesses. The Fund provides loan finance to platforms that lend small amounts, typically over the short term to thousands of Australian SMEs across Australia. The Fund may invest in high-quality asset-backed SME loans, consumer loans via warehouse securitisation vehicles, mortgage-backed loans, and senior loans, secured against a loan portfolio that provides regular income.
By carefully analysing the merits of businesses requiring short-term loans, deep due diligence can reduce risk while offering an attractive income yield.
[1] The target net return is not guaranteed.
Why Invest
| Style | Income |
| Benchmark | RBA Cash Rate plus 3.5% - 5.5% per annum |
| Fund fact sheet | Download |
| Target Market Determination (TMD) | Download |
Montgomery Investment Management has a Distribution Partnership with Aura Credit Holdings Pty Ltd.
Investment Manager
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.
Continuous Disclosure Notice
From 1 April 2023, Aura Core Income Fund, has over 100 unitholders and is therefore a ‘disclosing entity’ for the purposes of the Corporations Act 2001.
WEBINAR
In this webinar recording Brett Craig introduced private credit as an asset class for investors seeking income. Brett and his team have a proven track record in SME debt strategies, even throughout periods of asset price volatility, preserving investor capital and delivering on the strategy’s monthly income objective. This highlights the key role private credit can play in an investor’s portfolio during uncertain times. You can watch the recording here.
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.
| Jul | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |
| 2022/23 | 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 | 1.00 | 1.00 |
Source: Aura Core Income Fund. The Fund’s inception date is October 2022. Past performance is not a reliable indicator of future performance.
| Inception Date | 4 October 2022 |
| Investment Manager | Aura Funds Management Pty Ltd |
| Objective | The Aura Core Income Fund (the Fund) aims to preserve capital and provide a stable monthly income through exposure to a diversified pool of Australian private debt assets, predominantly made up of small to medium enterprise loans. |
| Benchmark | Reserve Bank of Australia cash rate + 3.5-5.5% |
| Fund Construction | PDS |
| APIR Code | OMF9469AU |
| Recommended Investment Timeframe | 2-5 years |
| Minimum Investment | A$25,000 |
| Minimum Additional Investment | A$1,000 |
| Frequency of Pricing | The Fund is priced monthly |
| Entry Fee | Nil |
| Exit Fee | Nil |
| Buy/Sell Spread | Nil |
| Management Fee | 0.69% per annum |
| Performance Fee | Nil |
| Aura Core Income Fund | RBA cash | |
|---|---|---|
| 1 month | 0.66% | 0.35% |
| 3 months | 1.85% | 1.01% |
| 6 months | 3.75% | 2.06% |
| 12 months | 7.49% | 4.11% |
| Since Inception | 10.90% | 5.73% |
| Compounded Annual Return | 7.19% | 3.81% |
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: 4 October 2022.
Aura Funds Management has distributed the following income since inception:
| Jul | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | |
| 2022/23 | 0.44% | 0.53% | 0.53% | 0.58% | 0.50% | 0.55% | 0.55% | 0.58% | 0.56% | |||
| 2023/24 | 0.60% | 0.63% | 0.62% | 0.62% | 0.61% | 0.62% | 0.57% | 0.62% | 0.66% |
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.
The Aura Core Income Fund (ARSN 658 462 652)(Fund) is issued by One Managed Investment Funds Limited (ACN 117 400 987 | AFSL 297042) (OMIFL) as responsible entity for the Fund. Aura Credit Holdings Pty Ltd (ACN 656 261 200) (ACH) is the investment manager of the Fund and operates as a Corporate Authorised Representative (CAR 1297296) of Aura Capital Pty Ltd (ACN 143 700 887 | AFSL 366230). Montgomery Investment Management Pty Ltd (ACN 139 161 701| AFSL 354564) (Montgomery) is the authorised distributor of the Fund. As authorised distributor, Montgomery is entitled to earn distribution fees paid by the investment manager and, subject to certain conditions being met, may be issued equity in the investment manager or entities associated with the investment manager.
You should obtain and carefully consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the Fund before making any decision about whether to acquire, or continue to hold, an interest in the Fund. Applications for units in the Fund can only be made through a valid paper or online application form accompanying the PDS. The PDS, TMD, continuous disclosure notices and relevant application form are available to download from this page or from the responsible entity: One Managed Investment Funds Limited
Any financial product advice given is of a general nature only. The information has been provided without taking into account the investment objectives, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs.
ACH, Montgomery and OMIFL do not guarantee the performance of the Fund, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report may be based on information provided by third parties that may not have been verified.
Where information provided by Brett Craig, Portfolio Manager of the Fund, consists of General Advice, this is provided as an Authorised Representative (AR No. 001298683) of Montgomery.
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