Aura Group | News and Insights

Aura High Yield SME Fund Celebrates Five Years

Written by Brett Craig | Jul 30, 2022 11:59:00 PM

This month marked the fifth anniversary of the Aura High Yield SME Fund, which launched in August 2017. 

We are particularly proud of how the Fund has been able to navigate the last two years, while the Australian economy weathered the effects of rising interest rates, conflicts in Eastern Europe, inflation led by supply chain constraints, and Covid-19 lockdowns.

Aura High Yield SME Fund is a wholesale Fund that invests in pools of Australian SME business loans, originated by tech-enabled non-bank lenders. In the five years since inception, we've produced consistent monthly positive returns and Assets Under Management have grown more than 100% on an annualised basis. For 100% months since inception, our net asset value has remained steady at a dollar—achieving returns ranging anywhere from 60 bps up to 92 bps per month with a positive correlation to the RBA Cash Rate. Consistency and capital preservation are core objectives of the fund.

We focus on funding Australian businesses because they employ over 70% of the Australian workforce. In our view, there are several foregone opportunities within the Australian SME lending market due to a lack of capital availability.

The Fund has been rated by both Foresight and Evergreen, sitting at the second top level on both of those scales. We’ve maintained these ratings, particularly with Foresight, since we started the Fund. Evergreen has been rating us for over three years and we’ve maintained a strong level throughout that time.

Read more about the Aura High Yield SME Fund

 

Important information

This information is for accredited, qualified, institutional, wholesale or sophisticated investors only and is provided by Aura Group and related entities and is only for information and general news purposes.  It does not constitute an offer or invitation of any sort in any jurisdiction. Moreover, the information in this document will not affect Aura Group’s investment strategy for any funds in any way. The information and opinions in this document have been derived from or reached from sources believed in good faith to be reliable but have not been independently verified. Aura Group makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or liability for the accuracy or completeness of this information. No reliance should be placed on any assumptions, forecasts, projections, estimates or prospects contained within this document. You should not construe any such information or any material, as legal, tax, investment, financial, or other advice. This information is intended for distribution only in those jurisdictions and to those persons where and to whom it may be lawfully distributed. All information is of a general nature and does not address the personal circumstances of any particular individual or entity. The views and opinions expressed in this material are those of the author as of the date indicated and any such views are subject to change at any time based upon market or other conditions. The information may contain certain statements deemed to be forward-looking statements, including statements that address results or developments that Aura expects or anticipates may occur in the future. Any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected in the forward-looking statements. This information is for the use of only those persons to whom it is given. If you are not the intended recipient, you must not disclose, redistribute or use the information in any way.

Aura Group subsidiaries issuing this information include Aura Group (Singapore) Pte Ltd (Registration No. 201537140R) which is regulated by the Monetary Authority of Singapore as a holder of a Capital Markets Services Licence, and Aura Capital Pty Ltd (ACN 143 700 887) Australian Financial Services Licence 366230 holder in Australia.