We've returned 9.6%* pa to investors without sacrificing on security. Here's how we do it
In this period of heightened volatility, above-target inflation, and rising interest rates, you need investments that aim to protect your capital as well as grow it. Quality private credit is one way of achieving this. And unlike equities, the cash rate, or other asset classes, you're not wed to the economic cycle.
At Aura Group, we focus our attention on the local small and medium enterprise (SME) market. SMEs are always in need of fresh credit and financing avenues. And with banks shifting their attention toward mortgages, non-bank lenders are stepping up to fill the gap of providing loans to the engine of Australia's economy - a gap that could be as large as $450 billion.
To mitigate risk for investors we make sure that the Fund’s portfolios are well-diversified and focused on lending to businesses with low probabilities of default with additional asset security and equity protection to mitigate losses, should defaults occur. This allows us to pay you regular monthly income that has little correlation (and therefore, little spill over effect) from public markets.
In this Fund in Focus, I'll share how we run the Aura Private Credit Funds - the Aura Core Income Fund and the Aura High Yield SME Fund (for wholesale investors). I'll explain how we have generated outsized returns while providing two levels of security for our investors. Finally, I'll share with you our impressive track record - which includes zero down months in the six years we have run our operation.
Timestamps
- 0:00 - The SME credit opportunity
- 1:10 - The key advantages of private credit
- 2:24 - Our highly diversified portfolio
- 4:24 - How we use the payment "waterfall" to protect investor capital
- 6:08 - The benefits of investing with Aura Credit Holdings
- 7:54 - Our performance (Aura High Yield SME Fund)
- 10:15 - Fund summaries
- 11:57 - Our performance (Aura Core Income Fund)
Find out more
Learn more about the Aura Private Credit Funds or contact Montgomery Investment Management on (02) 8046 5000 or investor@montinvest.com
Join us for a free, 45-minute live webinar ‘Private Credit Explained’ - 1pm Wednesday 19 July 2023. Register here.
* Net returns for the Aura High Yield SME Fund
(for wholesale investors only) as at 31 May 2023. Performance assumes
reinvestment of distributions since inception in August 2017. Past performance
is not a reliable indicator of future performance.
3 topics
2 funds mentioned