Aura Private Credit Income Fund
The Aura Private Credit Income Fund (formerly the Aura High Yield SME Fund) is a credit income fund offering attractive monthly income from a well-diversified portfolio of debt securities including business loans.
Investment Highlights
| For more information on the Fund click here |
The Aura Private Credit Income Fund (APCIF) aims to provide monthly income returns from a diversified portfolio of debt securities including asset backed business loans, director guaranteed business loans, and senior loans to non-bank lenders secured against a loan portfolio that provide regular income and capital stability.
The Fund benefits include:
- The Fund has generated attractive compound returns since inception (1 August 2017), and since then there has been no loss of capital in the Fund.
- Aims to provide monthly income through the economic cycle and protection against inflation through a widely diversified portfolio of borrowers with an average loan duration of typically between 3-6 months.
- The SME loan asset class continued to deliver regular income to investors through volatile economic conditions during 2020, 2021,2022 and 2023.
- The business loan asset class has a low correlation to equities and property and complements existing portfolios invested in these asset classes.
- A well-diversified portfolio of business loans. The Fund lends against the income, working capital or assets of a business.
- Traditional lenders (e.g., banks) are increasingly focused on lending to large business customers, leaving a niche opportunity for individuals, their families and family entities to provide funding to SMEs and generate returns previously earned by traditional lenders.
The Aura Private Credit Income Fund aims to provide monthly income above the Fund’s benchmark which is the RBA cash rate +5% per annum (as at 31 January the benchmark is 9.35%) from a broadly diversified portfolio of business loans in Australia.
The Fund invests in a select group of online 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 mitigate risk while offering an attractive income yield. Since its inception, there has been no loss of capital in the Fund.
Click here to view our latest Fund Performance.
Montgomery Investment Management is the distribution partner. For all enquiries, please contact investor@montinvest.com
Natasha Parker
Head of Marketing and Communications
Montgomery Investment Management Pty Limited
This information is for accredited, qualified, institutional, wholesale or sophisticated investors only and is provided 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). Aura Funds Management Pty Ltd is the Trustee of the Fund and a subsidiary of Aura Group Pty Ltd.
Any financial product advice given in this report 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. Aura does not guarantee the performance of its 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 in this report is based on the information provided to Aura by third parties that may not have been verified. Aura believes that the information is reliable but does not guarantee its accuracy or completeness. Aura is not able to give tax advice and accordingly investors should obtain independent advice from an accountant and/or lawyer before making any decision based on the tax treatment of its investors. You must read the Fund Fact Sheet or Information Memorandum and seek professional advice before making a decision to invest in any of the funds.
Aura Credit Holdings Pty Ltd (ACH) is the private credit division of Aura Group.
Aura Group is a financial services business that provides wealth, funds management, and corporate advisory solutions to wholesale and sophisticated investors and institutional investors. Established in 2009, the group has over $1.5 billion (as of 31 December 2023) under advice and management and employs staff across Australia and Southeast Asia. It is privately owned by its staff members and strategic investors.
Aura Credit Holdings has a partnership with Montgomery Investment Management to distribute the Aura Private Credit Income Funds (APCIF) to Australian investors and advisers.
About Montgomery Investment Management
Montgomery Investment Management has a partnership with Aura Credit Holdings to distribute the Aura Private Credit Income Fund to Australian investors and advisers.
Founded by Roger Montgomery in 2010, Montgomery Investment Management is an Australian boutique investment manager which looks after investments on behalf of individuals, families and their advisers. Montgomery's goal is to deliver superior long-term investment outcomes for clients and their advisers - in the form of capital preservation, income and growth.
Brett joined Aura Group in 2016 as a Director and the Portfolio Manager of the Fund.
Prior to joining Aura Group, Brett held several roles at Macquarie Group, Australia’s largest investment bank over an 11-year period including a Vice President role within the Debt Markets business where he focused on originating, structuring and distributing debt products primarily in the Australian market.
Brett is known as the first portfolio manager to originate, structure, negotiate and execute an Australian bank debt facility for an Australian alternative finance lender lender.
As a member the Investment Committee for the Aura Private Credit Funds, Brett spends a considerable amount of his time assessing transactions and potential investment opportunities.
Brett is a member of the Investment Committee of the Fund and will spend a considerable amount of his time assessing transactions and potential investment opportunities.
Brett holds a B. Comm from The University of Wollongong and is also a Chartered Accountant.
Brett is supported by a team of investment analysts – Brian Ho, James Chapman and Natalie Kolenda.
Montgomery Investment Management has a partnership with Aura Group to distribute the Aura Private Credit Income Fund to Australian investors and advisers.
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 the best-selling investment book, Valuable. He is a regular contributor to LiveWire and also appears on television and radio, and in the press, including ABC’s Statewide Drive radio program, The Australian and Ausbiz.
Click here to view the latest Fund Insights.
Click here to view our latest Performance Report.
The Fund has a medium-term (2-5 years) objective suitable for wholesale clients seeking a regular monthly income solution.
Investment in the Fund can only be made by persons who are wholesale clients as defined in Section 761G and Section 761GA of the Corporations Act. View wholesale client definition
The Fund is offered under an Information Memorandum and is an open-ended unit trust that is not registered with ASIC as a managed investment scheme.
The Fund aims to provide monthly income returns from a diversified portfolio of debt securities including asset backed business loans, director guaranteed business loans, and senior loans to non-bank lenders secured against a loan portfolio that provide regular income and capital stability.
The portfolio invests across a select group of non-bank lenders that provide small, short-term loans to small and medium enterprises (SMEs) across various industries. The Fund invests in high-quality asset-backed SME loans, director guaranteed SME loans, senior loans to financial technology and alternative finance companies.
The Fund invests in non-bank lenders that satisfy the following criteria:
- There is an underlying exposure to SMEs;
- There are processes for robust credit assessments of the underlying SME borrowers;
- The lender has a scalable business model with a robust medium-term outlook to ensure the debts will be serviced to a high standard to maturity; and
- The lender’s management team has a proven track record.
The Fund will also invest in other forms of debt with underlying exposures to SMEs, including senior debt, asset-backed securities such as notes, and bonds issued by securitisation trusts (including covered bonds) and loans made via peer-to-peer lending platforms.
Please refer to Section 4: Investment Plan on page 12 of the IM for further information on the Fund's investment plan.
The minimum investment and minimum wholesale client balance are $100,000.
You may also add to your initial investment through a lump sum additional investment. Additional investments are accepted every month and will be processed on the first business day of each month (provided an application is made before 5 pm on the last business day of the preceding month and the application monies are received by the issue date.)
The Fund’s net asset value is determined on the last business day of the preceding month before processing an application.
Since its inception, the Fund has paid a monthly distribution every month. View distribution history. It is intended that the Fund will continue to make monthly income distributions to investor
Yes, you can elect to take distributions as follows:
- Direct deposit to a bank account in the name of the entity investing; or
- Reinvestment in the Distribution Reinvestment Plan 'DRP'. If no election is made on your application form when you invest, then distributions will automatically be reinvested in the DRP
To access your investment online please visit the client portal by clicking on the button below. If you are logging in for the first time, please create an account and add your investment with your account number or investment profile ID.
To redeem your holding, fill out the Redemption Request Form and have it signed by the authorised signatories on the account. Please download the Redemption Request Form here.
An investor may make a redemption request for any Units held by the investor which have been on issue for at least one month. Provided there is available cash to do so. Valid redemption requests will be processed at the redemption date in each month and will generally be paid on the date which is ten days after the relevant redemption date. There is no guarantee that there will be any available cash for redemption.
A valid redemption request is one received between 30 and 45 days before the relevant redemption date. There will typically be a redemption date on the first business day of each month.
The Fund has had a very low rate of defaults within underlying loans, lending vehicles or late payments. No defaults of underlying loans have led to capital losses within the Fund.
Montgomery Investment Management are the distribution partner. For all enquiries, please contact investor@montinvest.com
Natasha Parker
Head of Marketing and Communications
Montgomery Investment Management Pty Limited
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This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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