A quick and easy guide to this emerging income asset class

Livewire Exclusive

Livewire Markets

Investors who have taken a balanced approach to income investing face a bittersweet outlook. On the one hand, the key Australian fixed interest benchmark is up 3.21% year-to-date as RBA rate cuts and pandemic-induced volatility lifted bond prices. Meanwhile equities have tumbled 15% with the additional bugbear of steep dividend cuts. The reality for both asset classes is that yields are going to be lower for some time given the outlook for monetary and economic outlook.

In our latest Expert Insights interview we put the spotlight on an alternative asset class that can be considered for high yield: small-to-medium (SME) business loans. Brett Craig of Aura Group specialises in this sector and targets annualised returns of 10-12% while seeking to preserve capital. Here, he introduces SME debt capital and the opportunity on hand to generate income.

The Aura High Yield SME Fund aims to provide stable monthly income from a diversified portfolio of debt securities, principally issued by lenders to SME businesses in Australia. 

Find out more here

Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 contributor mentioned

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.