The Aura Private Credit Income Fund (previously known as the Aura High Yield SME Fund) aims to provide attractive monthly income with target returns of 9%-12% per annum from a broadly diversified portfolio of loans to businesses in Australia. The Fund invests in a select group of 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 businesses represent the majority (80%) of the portfolio. The average loan size is around $122.600 with an average term of 3-6 months. The remaining 20% is invested in a portfolio of 13,554 business loans. This generally means any single borrower defaulting should have a negligible impact on the overall portfolio return.
Why Invest
| Number of loans | 13,554 loans 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.
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 Private Credit Income 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 2025. It is privately owned by staff members and strategic investors.
Aura Private Credit Income 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 Private Credit Income 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.
Previously known as the Aura High Yield SME Fund.
Roger Montgomery is joined by Brett Craig from Aura Credit Holdings in this update to celebrate the seventh anniversary of the Aura Private Credit Income Fund (previously known as the Aura High Yield SME Fund). They highlight the Fund’s track record of outperforming the stock market with no volatility and consistently providing stable monthly income, even through challenges like COVID. Brett Craig emphasises the Fund's structure, offering a well-diversified loan portfolio, and additional protection through warehouse structures.
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. Please note that the video refers to the Aura High Yield SME Fund, which is now known as the Aura Private Credit Income Fund.
| 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 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2024/25 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| 2025/26 | 1.00 | 1.00 | 1.00 | 1.00 |
Source: Aura Private Credit Income Fund Performance Update, July 2022. The Fund’s inception date is August 2017. Past performance is not a reliable indicator of future performance.
| Inception Date | 1 August 2017 |
| Investment Manager | Aura Funds Management Pty Ltd |
| Objective | The Fund aims to provide stable monthly income returns from a diversified portfolio of debt securities including asset backed SME loans, director guaranteed SME loans, and senior loans to AltFi lenders secured against a loan portfolio that provide regular income and capital stability. |
| Benchmark | Reserve Bank of Australia cash rate + 5.0% per annum |
| Fund Construction | Information Memorandum |
| APIR Code | ARF3849AU |
| Recommended Investment Timeframe | 2-5 years |
| Minimum Investment | A$100,000 |
| 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 | 1.25% per annum |
| Performance Fee | 20% of the total return of The Fund that is in excess of the benchmark |
| Aura Private Credit Income Fund | RBA cash rate plus 5% p.a. (Benchmark) | RBA cash rate | Out/Under Performance | |
|---|---|---|---|---|
| 1 month | 0.65% | 0.73% | 0.31% | -0.08% |
| 3 months | 1.95% | 2.18% | 0.91% | -0.23% |
| 6 months | 4.03% | 4.48% | 1.89% | -0.45% |
| 12 months | 8.53% | 9.35% | 4.05% | -0.82% |
| 2 years (p.a) | 9.16% | 9.56% | 4.24% | -0.39% |
| 3 years (p.a) | 9.27% | 9.38% | 4.07% | -0.11% |
| 5 years (p.a) | 9.01% | 7.85% | 2.61% | 1.16% |
| 7 years (p.a) | 9.20% | 7.32% | 2.11% | 1.87% |
| Since Inception | 111.49% | 77.87% | 17.92% | 33.62% |
| Compounded Annual Return | 9.50% | 7.23% | 2.02% | 2.27% |
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% | 0.81% | 0.78% | 0.81% | 0.75% |
| 2024/25 | 0.79% | 0.76% | 0.78% | 0.76% | 0.74% | 0.77% | 0.73% | 0.65% | 0.75% | 0.62% | 0.68% | 0.67% |
| 2025/26 | 0.67% | 0.67% | 0.62% | 0.65% |
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 Private Credit Income 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.
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