Aura High Yield SME Fund
The Aura High Yield SME Fund aims to provide attractive and reliable monthly income with target returns of 9%-12% per annum from a broadly diversified portfolio of loans to small and medium-sized businesses (SMEs) in Australia.
NAV per unit as at 31 March 2024: $1.00 and has been maintained over the life of the Fund.
About the Fund
The Aura High Yield SME Fund (the Fund) is an open-ended unlisted fund that provides funding to non-bank lenders that specialise in providing finance to small-to-medium enterprises (SMEs) in Australia.
The Fund invests in diversified pools of SME loans via a select group of online lenders across various industries capturing the higher interest rate premium of SME loans. This provides a layer of diversification 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.
0.81%
9.63%
84.59%
100%
Overview
The March ’24 distribution was the 80th since the inception of the Fund. We have delivered annual compound returns of 9.78% in the last 12 months, and annualised returns since inception of 9.63%, net of fees and expenses on a distribution reinvestment basis.
The Fund has outperformed the ASX200 and S&P Australia High Yield Corporate Bond Index on a cumulative returns basis, with stability in the return profile.
Fund Performance (as at 31 March 2024)
| 1-Month | 3-Month | 6-Month | 1-Year | 2-Year | 3-Year | 5-Year | Since Inc. (p.a.) | Since Inc. (cum)1 | |
| AHYSMEF | 0.81% | 2.38% | 4.80% | 9.78% | 9.16% | 9.02% | 9.15% | 9.63% | 84.59% |
| Benchmark2 | 0.77% | 2.26% | 4.62% | 9.47% | 8.60% | 7.46% | 6.75% | 6.74% | 54.46% |
| RBA Cash Rate | 0.35% | 1.01% | 2.06% | 4.16% | 3.32% | 2.24% | 1.56% | 1.55% | 10.81% |
| Outperformance | 0.04% | 0.12% | 0.18% | 0.32% | 0.56% | 1.56% | 2.39% | 2.89% | 30.12% |
*Performance net of fees and expenses (1) Inception date 1-Aug-17, (2) RBA cash rate plus 5% p.a.
**Returns assume reinvestment of all distributions. Past performance is not an indication of future performance.
Distribution History (%)
| Jul | Aug | Sep | 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% |
Unique Access to SME debt capital
Strong Track Record and Risk-Adjusted Returns
Inflation Buffer and Reduced Volitality
Alternative Diversification to Complement Equity and Property Portfolios
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Eligible Investors
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Type, Frequency & Target Return
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Minimum Funds & Investment Period
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Fees
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Benchmark
Wholesale clients as defined by the Corporations Act who have an accountant’s certificate confirming a gross income of over $250,000 p.a. in each of the previous two years and or net assets of at least $2.5 million. Alternatively, you may qualify without an accountant’s certificate if you invest $500,000 or more.
The Aura High Yield SME Fund is an open-ended fund that provides monthly distributions with a target return of 9-12% p.a. net of fees and expenses.
Aura Group Funds have a minimum investment of A$500,000, however, investments of $100,000 and above will be considered. Each Unit must be on issue for one month before it is eligible for redemption. A Unit on issue for less than one month is called a Redemption Locked Unit.
The following fees apply:
- Management Fees: 1.25% p.a. plus ordinary Fund expenses
- Performance Fees: 20% of returns in excess of the benchmark.
Fees show are exclusive of GST.
RBA Cash Rate + 5.0% p.a.
How to Apply
Thank you for your interest in the Aura High Yield SME Fund.
Aura Group Funds have a minimum investment of A$500,000. If you meet the criteria for wholesale and sophisticated clients as defined by the Corporations Act 2001, we will consider a minimum investment of A$100,000.
Before making an application for units in the Fund, please read the Information Memorandum.
Is this Fund suitable for me?
The Fund has a medium-term (2-5 years) objective suitable for wholesale clients seeking a reliable 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.
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.
What is the Fund's investment objective?
The Fund aims to provide a 9%-12% yield, distributed as a reliable monthly income from a diversified portfolio of online lending businesses that offer small short-term loans to small and medium enterprises.
Where does the Fund invest?
The portfolio invests across a select group of online 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 online 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.
What is the minimum initial investment?
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.
How often is income paid?
Since its inception, the Fund has paid a monthly distribution every month. It is intended that the Fund will continue to make monthly income distributions to investors.