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Aura, Montgomery ink distribution deal

Montgomery Investment Management will now distribute the Aura High Yield SME Fund on behalf of Aura Funds Management.

The fund, which will be offered to wholesale investors, is a diversified portfolio of SME loans, 36% of which are in the agricultural sector. The weighted average loan is just shy of $145,000 with an average duration of four months.

Since launching in August 2017, it has delivered a compound annual return of 9.75%, after expenses and assuming distribution reinvestment. The average monthly distribution has been 0.78% each month.

Aura Funds Management director Brett Craig is the portfolio manager for the fund, which currently has about $91 million in funds under management.

"We are excited to commence the distribution partnership with Montgomery. We have spent a considerable amount of time with the team and are impressed with the client relationships that have been developed over the last decade, and the distribution capability within Montgomery," Craig said.

"We look forward to providing a high-quality income solution to the Montgomery clients."

The fund is available on Macquarie Wrap and has a minimum investment of $100,000. An investment of $100,000 at the fund's inception is worth $154,000 today, the firms said.

Montgomery Investment Management said it is also working with Aura on bringing a second credit income offer to market later this year for retail investors.

Read more: Montgomery Investment ManagementAura Funds ManagementAura High Yield SME FundBrett CraigMacquarie Wrap