Sydney, 22 March 2022 – Foresight Analytics reaffirms its investment ratings of AURA High Yield SME Fund
Foresight Analytics has completed a ratings assessment of Aura High Yield SME Fund (the Fund). The Aura High Yield SME Fund has been assigned a VERY STRONG investment rating. A Foresight Complexity Indicator of COMPLEX has been assigned to the fund.
Aura High Yield SME Fund is managed by AURA Funds Management Pty Ltd, a Sydney-based investment management firm.
The Fund is an open-ended, unlisted fund that invests in online (non-bank) lenders which specialise in providing finance to small-to-medium sized businesses (SMEs) in Australia.
The Fund offers a monthly income, targeting 9% to 12% per annum return (net of management fees) with a low level of expected capital loss, provided that the Australian economy does not slow significantly. The Fund’s investments are backed by diversified pools of SME loans.
The investment rating of VERY STRONG is the second-highest rating on the scale used by Foresight Analytics and reflects a very strong level of confidence that the Fund can deliver a risk-adjusted return in line with its objectives given the current growth rate of online lending in Australia. The investment manager’s support for this strategy is experienced and well-resourced.
The Foresight Complexity Indicator designation as COMPLEX indicates that the investment manager will seek to outperform their chosen specialist market sector, in this case, the Australian SME loan market. A key risk is Aura’s ability to identify and validate non-bank lenders with experience in the SME sector and superior loan underwriting and servicing standards.
Foresight Analytics’ analyst, Maggie Callinan, says “the Aura High Yield SME Fund offers access to an attractive investment, on a risk-return basis, that captures the higher interest rate premium of SME loans. In addition, the Fund provides well-researched, diversified exposure to SME debt through fast growing online lenders. We believe the experience of the investment team and resources from the broad Aura Group will continue to underpin consistent performance going forward”.
The full report is available to registered users of the Foresight 360 digital research platform
Find out more about Foresight Analytics’ Investment Ratings by visiting www.foresight-analytics.com.
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About Foresight Analytics
Foresight Analytics, an independent Sydney based firm, provides investment diligence, data analytics, and advisory solutions to leading investment management companies, superannuation funds and wealth groups across the Asia Pacific. Foresight’s innovative, evidence-based approach blends both human and forensic insights to provide a range of analytical, predictive and market intelligence solutions to investors. Foresight Analytics was founded in 2015 by Jay Kumar, a former executive of Morningstar, Optimix Investment Management, ANZ Wealth & Private Bank and the Reserve Bank of Fiji.
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