Aura Private Credit Funds

Aims to provide investors with attractive and reliable monthly income and capital stability from a diversified portfolio of small and medium sized business loans.

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Why Private Credit?

Target returns

The Aura High Yield SME Fund targets a net return of the RBA Cash Rate plus 5% p.a.*
The Aura Core Income Fund targets a net return of the RBA Cash Rate plus 3.5% to 5.5% p.a.*

*net of fees and costs.

Reduced market volatility

Private credit has little correlation to public markets. The Aura High Yield SME Fund (for wholesale investors) has demonstrated that the small and medium-sized enterprise (SME) loan asset class can deliver reliable income to investors through disruptive market conditions.

High governance

Extensive credit assessments are undertaken on the businesses seeking funding. Selection of quality lenders and credit seniority all provide a level of protection of investors' capital. Since inception, there has been no volatility or loss of investors’ capital**.

** Funds do not guarantee the return of capital and past performance is not a reliable indicator of future performance.

How do investors receive regular income?

Investor invests in the fund

The investor makes an investment in the Aura High Yield SME Fund (for wholesale investors) or the Aura Core Income Fund.

Aura provides funds to non-bank lenders

The Funds invest in a rigorously selected panel of high quality, specialist, non-bank lenders that provide small, short-term corporate loans across a diverse range of Australian industries.

Companies borrow

The Funds and our non-bank lenders only provide loans as growth capital. The Funds do not lend to distressed companies.

Funds distribute income

Regular monthly income is distributed to investors from the principal and interest charged to our corporate borrowers in a highly diversified portfolio of secured loans.

About the funds

Aura High Yield SME Fund

(For wholesale investors only)

 An open-ended, unlisted, monthly distributing private credit fund 
An impressive performance track record after all fees and expenses of 9.63% p.a. since its inception in August 2017.
 Diversified across a select group of specialist non-bank lenders across various industries.
 Minimum investment of A$100,000 for wholesale and sophisticated investors as defined by the Corporations Act 2001.
The Fund’s investments are backed by over 13,080 secured SME loans.
 Since its inception, there has been no volatility or loss of investors’ capital.
 Monthly distributions. 

*Returns as at 30/04/24. Past performance is not a reliable indicator of future performance.

About the Aura Core Income Fund

(For retail investors)

 An open-ended, unlisted credit income fund 
✓ A performance track record after all fees and expenses of 11.62% in the 19 months since its launch in October 2022.
 Diversified across a select group of online lenders across various industries.
 Available for retail investors with a minimum investment of $25,000.
The Fund’s investments are backed by over 8,836 secured SME loans.
 Since its inception, there has been no volatility or loss of investors’ capital 
 Monthly distributions. 
✓ Exposure to the private credit asset class, that individual retail investors cannot easily access on their own.

*Returns as at 30/04/24. Past performance is not a reliable indicator of future performance.

Please complete the form via the below link to receive full documentation on the Aura High Yield SME Fund.

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Please complete the form via the below link to receive full documentation on the Aura Core Income Fund. 

 

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Fund highlights

Aura High Yield SME Fund

9.63%

Annualised net return after fees*

0.77%

Average monthly return

100%

Months outperformed the benchmark

Since inception (August 2017). Net returns as at 30 April 2024 and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance.

Aura Core Income Fund

11.62%

(since 4 October 2022)
Net return after fees

0.58%

Average monthly return

100%

Months outperformed the benchmark

Net returns as at 30 April 2024 and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance.

How to invest

After reading the Product Disclosure Statement and the Target Market Determination for the Aura Core Income Fund or the Information Memorandum for the Aura High Yield SME Fund:

1

Complete the online application form and ID verification online on the Olivia123 platform (approx. 10 minutes)

2

Submit the completed application form to the Administrator online

3

Transfer the funds and an investment confirmation will be issued by the Administrator

Aura High Yield SME Fund

Aura Core Income Fund

Not ready to invest yet? Contact us

Fund Performance

Aura High Yield SME Fund

[["Date","AHYSMEF - Cash Dist.","AHYSMEF Value - Dist. Reinvested","RBA Cash Rate - Dist. Reinvested","Benchmark - Dist. Reinvested","S&P Australia High Yield Corporate Bond Index","ASX 200 (Adjusted Close)"],["Jul-17",100000,100000,100000,100000,100000,100000],["Aug-17",100839.6,100839.6,100127.4,100552.05,100570.78,99893.37],["Sep-17",101712.7,101720.03,100250.84,101089.25,101079.86,99318.26],["Oct-17",102622.7,102645.68,100378.56,101647.32,101532.37,103293.36],["Nov-17",103516.2,103562.82,100502.31,102190.37,102005.45,104357.93],["Dec-17",104443.8,104523.47,100630.35,102754.51,102545.38,106022.1],["Jan-18",105374.3,105496.06,100758.55,103321.77,103270.43,105543.13],["Feb-18",106217.5,106385.6,100874.49,103836.97,103733.22,105163.79],["Mar-18",107146.9,107374.35,101003,104410.2,103980.05,100678.25],["Apr-18",108006.9,108297.77,101127.53,104968.01,104391.42,104581.69],["May-18",108924.9,109291.95,101256.36,105547.49,104617.68,105092.12],["Jun-18",109804.9,110253.71,101381.2,106111.38,105157.61,108285.85],["Jul-18",110714.9,111257.02,101510.35,106697.17,106844.24,109782.19],["Aug-18",111614.9,112258.34,101639.68,107286.2,107816.12,110469.18],["Sep-18",112489.3,113239.92,101764.99,107859.37,108428.04,108513.09],["Oct-18",113389.3,114259.08,101894.63,108454.81,108823.98,101917.63],["Nov-18",114251.3,115244,102020.25,109034.23,109554.17,99066.53],["Dec-18",115151.3,116281.19,102150.23,109636.16,110320.36,98702.93],["Jan-19",115971.3,117234.7,102280.36,110241.41,110778.01,102518.97],["Feb-19",116761.3,118160.85,102398.05,110791.11,111616.19,107838.34],["Mar-19",117606.7,119159.78,102528.51,111402.73,112809.17,108042.87],["Apr-19",118396.7,120101.15,102654.91,111997.9,113883.89,110574.07],["May-19",119236.7,121110,102785.69,112616.19,114588.37,111822.18],["Jun-19",120064.74,122112.83,102891.29,113194.7,116789.22,115701.15],["Jul-19",120814.74,123028.68,102978.68,113771.52,118275.31,119088.91],["Aug-19",121556.6,123941.38,103066.14,114351.29,119062.07,115445.94],["Sep-19",122297.6,124859.79,103150.85,114915.22,120645.86,116916.05],["Oct-19",123077.6,125833.69,103216.56,115476.41,120532.73,116480.79],["Nov-19",123801.42,126744.5,103280.19,116022.16,119087.78,119672.76],["Dec-19",124521.42,127657.06,103345.97,116588.76,119206.05,116842.64],["Jan-20",125251.42,128588.96,103411.8,117158.13,120321.9,122665.46],["Feb-20",125981.42,129527.66,103471.3,117674.91,119941.38,112596.58],["Mar-20",126731.42,130499.12,103493.27,118199.61,111744.74,88745.94],["Apr-20",127451.42,131438.71,103514.54,118709.65,83380.47,96535.33],["May-20",128181.42,132398.21,103536.52,119238.96,83159.36,100613.57],["Jun-20",128901.42,133351.48,103557.79,119753.49,83210.78,103099.33],["Jul-20",129645.62,134343.88,103579.78,120287.45,84115.8,103622],["Aug-20",130405.62,135364.9,103601.77,120823.8,84259.78,105941.68],["Sep-20",131157.28,136382.38,103623.06,121345.17,85391.06,101665.91],["Oct-20",131895.8,137389.59,103645.06,121886.23,86476.06,103618.5],["Nov-20",132615.8,138378.79,103653.58,122397.15,88003.29,113935.6],["Dec-20",133355.8,139402.8,103662.38,122927.32,88363.24,115147.01],["Jan-21",134105.8,140448.32,103671.19,123459.78,88548.36,115501.87],["Feb-21",134775.8,141389.32,103679.14,123942.79,87874.74,116653.85],["Mar-21",135515.8,142435.6,103687.95,124479.65,88455.8,118706.08],["Apr-21",136245.8,143475.38,103696.47,125001.44,90744.07,122815.79],["May-21",136985.8,144537.1,103705.28,125542.89,90970.33,125189.67],["Jun-21",137635.8,145476.59,103713.8,126069.14,92682.68,127836.24],["Jul-21",138385.8,146567.67,103722.61,126615.21,94420.73,129227.7],["Aug-21",139105.8,147622.95,103731.42,127163.64,94981.23,131715.2],["Sep-21",139815.8,148671.08,103739.94,127696.68,93993.93,128171.87],["Oct-21",140525.8,149726.64,103748.75,128249.8,91433.13,128023.28],["Nov-21",141235.8,150789.7,103757.28,128787.4,92291.87,126839.84],["Dec-21",141895.8,151784.91,103766.09,129345.24,92934.64,130136.7],["Jan-22",142625.8,152892.94,103774.91,129905.5,92605.54,118721.81],["Feb-22",143255.8,153856.17,103782.87,130413.73,91829.07,122326.33],["Mar-22",143875.8,154810.08,103791.68,130978.62,89695.07,131098.14],["Apr-22",144515.8,155800.86,103800.21,131527.66,88625.49,129968.88],["May-22",145115.8,156735.67,103831.07,132125.3,88898.03,126056.71],["Jun-22",145725.8,157691.75,103903.61,132760.58,86064.69,114814.88],["Jul-22",146395.8,158748.29,104066.87,133532.96,88697.49,121406.85],["Aug-22",147065.8,159811.9,104230.38,134309.83,87293.67,122128.65],["Sep-22",147745.8,160898.62,104431.7,135121.21,87314.24,113169.09],["Oct-22",148445.8,162024.91,104662.31,135993.39,87082.84,119973.36],["Nov-22",149123.22,163122.5,104907.48,136870.82,87519.93,127327.38],["Dec-22",149823.22,164264.36,104974.3,137539.24,86877.15,123036.38],["Jan-23",150643.22,165611.37,105460.62,138760.49,88964.88,130779.33],["Feb-23",151323.22,166737.53,105731.64,139649.32,89268.27,126876.92],["Mar-23",152115.8,168059.06,106009.95,140609.94,90286.42,125467.15],["Apr-23",152855.8,169302.7,106323.62,141603.84,91314.86,127764.03],["May-23",153575.03,170520.38,106671.29,142668.2,90440.68,123956.18],["Jun-23",154427.84,171974.71,107030.76,143735.28,91818.79,125913.77],["Jul-23",155233.82,173360.8,108101.67,145783.93,92009.05,129534.23],["Aug-23",156029.89,174740.86,107777.46,145965.66,91407.42,127564.75],["Sep-23",156822.78,176126.37,108140.65,147057.4,91551.4,123210.31],["Oct-23",157588.48,177474.98,108945.81,148776.85,91983.34,118526.37],["Nov-23",158357.8,178840.32,109312.94,149889.62,93310.02,123886.61],["Dec-23",159169.63,180292.2,109693.59,151048.08,95125.21,132687.62],["Jan-24",159949.46,181698.18,110075.57,152215.49,96899.26,134259.07],["Feb-24",160720.02,183098.27,110421.78,153278.08,97207.8,134573.37],["Mar-24",161532.31,184585.55,110806.29,154462.73,97943.13,138037.2],["Apr-24",162315.21,186030.7,111179.69,155618.03,98184.81,133968.03],["",null,null,null,null,null,null]]

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

Aura Core Income Fund

[["Date","Aura Core Income Fund Reinvested","Aura Core Income Fund Cash Distribution","RBA Cash"],["Sep-22",100000,100000,100000],["Oct-22",100440,100440,100220],["Nov-22",100972.33,100970,100450.51],["Dec-22",101507.49,101500,100711.68],["Jan-23",102096.23,102080,100973.53],["Feb-23",102606.71,102580,101236.06],["Mar-23",103171,103130,101550],["Apr-23",103738.49,103680,101864.7],["May-23",104340.17,104260,102187.87],["Jun-23",104925.82,104821.29,102532.23],["Jul-23",105554.02,105420,102889.27],["Aug-23",106232.75,106050,103247.55],["Sep-23",106889.31,106681.04,103595.48],["Oct-23",107555.44,107304.24,103956.22],["Nov-23",108211.41,107914.13,104306.54],["Dec-23",108881.22,108533.12,104669.75],["Jan-24",109503.44,109104.58,105034.23],["Feb-24",110178.44,109721,105364.59],["Mar-24",110900.94,110376.76,105731.49],["Apr-24",111623.83,111028.59,106087.79],["",null,null,null]]

Meet our people

Roger Montgomery

Founder and Chairman, Montgomery Investment Management

Roger Montgomery founded Montgomery Investment Management in 2010. He has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. 

Roger is the author of best-selling investment book, Value.able. He is a regular contributor to LiveWire and appears on television and radio, and in the press, including ABC’s Statewide Drive radio program, The Australian and Ausbiz.

Brett Craig

Director Private Credit, Aura Credit Holdings

Brett is responsible for portfolio management and asset origination for both the Aura High Yield SME Fund and the Aura Core Income Fund.

Prior to joining Aura Group, Brett held a number of roles at Macquarie Group over an 11 year period including Vice President within the Debt Markets business where he focused on originating, structuring and distributing debt products primarily in the Australian market.

Brett is supported by a team of investment analysts.

Ratings

Both the Aura High Yield SME Fund and the Aura Core Income Fund have been graded by Foresight Analytics as Very Strong.

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The Aura High Yield SME Fund has received a Commended rating from Evergreen Ratings.

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About the fund

 

Introducing private credit

In this video, Brett Craig and Roger Montgomery introduce private credit, the opportunity it offers for stable monthly income while preserving capital, why SMEs seek funding outside of the main banks, where the Aura Core Income Fund invests and how it makes a return for investors.

 

Banks have left a $240 billion gap, now savvy investors are seeing opportunity

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.

About the Montgomery and Aura Credit Holdings partnership

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  • Founded by Roger Montgomery in 2010, Montgomery Investment Management (MIM) is an Australian boutique investment manager which looks after investments on behalf of individuals, families and their advisers. 
  • MIM partners with expert investment managers from Australia and around the world to provide investors with access to quality investment opportunities across Australian and New Zealand equities, global equities and credit income. Learn more here: Montgomery and Aura partnership
  • MIM has a partnership with Aura Credit Holdings to distribute the Aura High Yield SME Fund and the Aura Core Income Fund to Australian investors and advisers.  
  • MIM partnered with the team at Aura Credit Holdings due to their expertise in Private Credit, highly disciplined investment and due diligence approach, successful performance track-record, proven ability to navigate rising interest rates, and the quality of businesses for which they provide lending. 
  • Aura Group is a financial services business which provides wealth, funds management and corporate advisory solutions to clients. Established in 2009, it has over $1 billion under advice and management and 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.

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Insights

November 27, 2023

Insights from the Australian Securitisation Forum

By Brett Craig

Last week the team attended the Australian Securitisation Forum. The event is held annually and brings together the leading industry bodies, representing participants in the securitisation and covered bonds markets. We had the opportunity to hear from a wide range of market leaders and competition. Each provided valuable insights into their own current views and outlook on the market.
November 7, 2023

Private Credit: Where collateral is king

By Dean Curnow

Private credit, in your author’s opinion, will feature in the top ten most used investment phrases for 2023. My BBQ conversations on weekends this year have gone from penny stock recommendations to weird and wonderful ways to get exposure to private markets, notably through credit.
November 6, 2023

Pressure from the IMF to raise rates further

By Brett Craig

The International Monetary Fund (IMF) have called on the Reserve Bank of Australia (RBA) to raise interest rates further.  ​ The IMF is concerned with the persistent rate of inflation. Whilst they are confident in assuming that inflation has peaked, the rate of decline is too slow and core inflation remains firm.

Disclaimer

This information is provided by Montgomery Investment Management Pty Ltd (ACN 139 161 701 | AFSL 354564) (Montgomery) as authorised distributor of the Aura Core Income Fund and Aura High Yield SME Fund.

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 Aura Core Income 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 may be obtained from www.oneinvestment.com.au/auracoreincomefund or from Montgomery. 

The Aura High Yield SME Fund is an unregistered managed investment scheme for wholesale clients only and is issued under an Information Memorandum by Aura Funds Management Pty Ltd (ABN 96 607 158 814, Authorised Representative No. 1233893 of Aura Capital Pty Ltd AFSL No. 366 230, ABN 48 143 700 887). 

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.  

Montgomery, ACH and OMIFL do not guarantee the performance of the Funds, 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 provided may be based on information provided by third parties that may not have been verified. 

Aura Group has entered into a Distribution Partner Agreement (Distribution Agreement) with Montgomery Investment Management to distribute the Aura High Yield SME Fund and the Aura Core Income Fund, to its client base. Montgomery may receive a share of the fees you pay Aura Funds Management and Aura Credit Holdings Pty Ltd 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.

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.

Funds

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