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 March 2023, the RBA Cash Rate is 3.60%, equating to a current target return of 7.10%-9.10% 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.
 The target net return is not guaranteed.
- Aims to deliver stable and consistent monthly income.
- Aims to perform through the economic cycle. The Aura SME High Yield Fund has demonstrated that the SME loan asset class can deliver reliable income to investors through disruptive market conditions.
- Returns are earned from interest generally charged at a floating rate above the RBA Cash Rate.
- Low volatility and little correlation to public markets.
- Exposure to the private debt asset class, that individual retail investors cannot easily access on their own.
- Access to the investment expertise behind the highly successful wholesale-only Aura High Yield SME Fund (currently available to wholesale clients only).
- A diversified portfolio of credit exposures across industries and geographies.