Foresight Analytics & Ratings has assigned Aura Funds Management's Aura Core Income Fund (ACIF) a very strong rating, which indicates a strong conviction that the fund can deliver a risk-adjusted return in line with its investment objectives.
The fund was launched in September 2022 and provides funding to select non-bank lenders specialising in providing finance to small-to-medium businesses via of warehouse financing structures.
Foresight said the investment manager's support for this strategy is experienced and well-resourced. It also added that it's Product Complexity Indicator (PCI) for the product was complex.
"The ACIF aims to provide stable monthly income returns from a diversified portfolio of debt securities including asset-backed SME loans, director guaranteed SME loans as well as senior and subordinated loans to non-bank lenders secured against a loan portfolio that provides regular income and capability stability," Foresight Analytics' analyst Rodney Lay said.
"Though recently launched, the ACIF already provides funding to 3 warehouse financing structures that, in turn, provide funding to 3 niche SME lenders, providing access to a portfolio of close to 9,000 loans. This rapid investment was achieved by leveraging the investment due diligence the Manager had previously undertaken for the higher-risk Aura High Yield SME Fund."