Aura High Yield

SME Fund

For wholesale investors seeking regular cash income

For wholesale investors seeking regular cash income

Fund Highlights

9.27%

12 month return

Return in the 3 years since inception of fund

34.06%

Months with a positive distribution

100%

As at 31 July 2020 on a net distribution reinvested basis. Inception date: 1 August 2017.

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About The Fund

✓ An open-ended unlisted Fund that invests in non-bank lenders.


✓ Diversified across five tech enabled SME lenders over multiple industries in Australia.


✓ The Fund’s investments are backed by over 400 SME loans.


✓ Monthly distributions. Distributions are not guaranteed and are subject to Fund Performance and/or discretion of the Manager.


✓ Liquidity in this Fund is restricted, with investments in “lock-up” for at least one year.


✓ Minimum investment A$500,000 or A$100,000 for wholesale and sophisticated investors as defined by the Corporations Act 2001.

Graded Very Strong by Australia Ratings. View details.

The Aura High Yield SME Fund has been graded by Australia Ratings* as Very Strong:

'Indicates a very strong conviction that the fund can deliver a risk adjusted return in line with the fund's investment objectives'.

*The Australia Ratings scale reflects a forward-looking opinion aimed to help investors identify funds or investment opportunities that are among “best in class”. This is a current rating and was issued in February 2020.

$134,343.88 AHYSMEF Value - Dist. Reinvested

$103,622.00 ASX 200 (Adjusted Close)

$103,579.78 RBA Cash Rate - Dist. Reinvested

Value of $100,000 Investment

at the Aura High Yield Fund inception*

*Past performance is not an indicator of future performance. (1) Fund inception at August 2017. Equities is a different asset class to debt and has different risks returns.

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News and Insights

The key driver in performance of the Aura High Yield SME Fund.

The Fund Process

Strict Lending Criteria.

In House Expertise.

Diversification.

Over 400 individual loan exposures, across five lenders & exposure spread between multiple industries.

Leveraging Aura Group's experience across both Venture Capital & Credit to assess both the loan originator & their lending practices.

Strict lending criteria is approved by the Fund Manager.

Aura Group is a financial services business providing tailored wealth management, funds management and corporate advisory solutions to clients.


Founded in Australia in 2009, our head office is in Singapore with a significant footprint across the Asia Pacific region including Sydney, Melbourne, Brisbane and Ho Chi Minh City.

About Aura Group

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Fund Performance as at 31 July 2020

Net of fees and expenses. *Past performance is not an indicator of future performance (1) Fund inception at August 2017. Calculated on a net distribution reinvested basis. (2) Fund Benchmark is the RBA Cash Rate plus 5%.


Key Risks

Interest rate Risk:

Market Risk:

Liquidity Risk:

Regulatory Risk:

Credit Risk:

The risk that the capital value or income of an investment may be adversely affected when interest rates rise or fall. The value and income of the Fund’s underlying assets can fluctuate in reaction to large changes in interest rates.

Servicer Risk:

The investment return on a particular asset is typically correlated to the return on other assets from the same market, asset class or geographic location. Market risk is impacted by broad factors such as political changes, investor sentiment and significant external events (e.g. natural disasters).

The Units in the Fund are illiquid and there is no established secondary market in which an investor may sell their Unit interest. Investors will not be able to redeem a Unit for the first year after it is issued. The investments the fund will purchase are also generally illiquid, and will have fixed maturity dates.

The risk that the value or tax treatment of an investment in the Fund or its assets, or the effectiveness of the Fund’s investment strategy, may be adversely affected by changes in government (including taxation) policies, regulations and laws, or changes in generally accepted accounting policies or valuation methods.


Those changes could prompt greater than usual levels of redemptions, which could have adverse effects on the Fund or result in the Fund failing to achieve its investment objectives.

Credit risk relates to the risk of issuers defaulting on their financial obligations. The value of assets within the Fund can change due to changes in the credit quality of the issuer and from changes in the value of similar securities. The value of the assets can also be impacted adversely by the underlying borrower not repaying their loans, which may be caused by a downturn in the economy.

ABS structures generally appoint a servicer to service the underlying loans. Servicer risk refers to the likelihood that the servicer mismanages the pool, or the servicer defaults, resulting in reduced payments and increased defaults to the ABS structure, and subsequently to investors.

Level 24, 52 Martin Place,

Sydney NSW 2000


info@aura.co


+612 9199 8888

Copyright © 2020 Aura Group,

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This report is provided to you for information purposes only by Aura Funds Management Pty Ltd (Aura) (ABN 96 607 158 814, Authorised Representative 1233893 of Aura Capital Pty Ltd AFSL 366 230, ABN 48143700887). Aura is the Trustee of all the funds mentioned 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 objective, 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.