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In this week’s video insight, I discuss how private credit funds can be an effective strategy for Australians, especially during the current cost–of–living crisis. I delve into why these funds might be a helpful addition to your investment portfolio, particularly in these challenging economic times. I provide a general overview of private credit as an asset class and explore its potential benefits, including the potential for regular income generation and risk management.   continue…

by Roger Montgomery Posted in Aura Group, Editor's Pick, Video Insights.

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Recent data from the Reserve Bank of Australia (RBA) on the Australian non-bank financing sector alluded to the fact that businesses are continuing to turn to non-bank providers for funding. As evidenced in the graph below, the non-bank share of business credit is trending upwards. Businesses are actively turning to non-bank lenders for bespoke lending solutions and quicker access to capital, in order to maintain momentum and assist with achieving growth. The banking sector continues to be the dominant lender within the residential mortgage-backed securities (RMBS) market, as the capital requirements enforced by the regulatory framework have favoured this style of lending for the banks. continue…

by Brett Craig Posted in Aura Group, Economics.

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The long-awaited quarterly consumer price index (CPI) figure was reported last week. Over the March quarter, CPI rose by 1.0 per cent, which follows the previous 0.6 per cent December quarter increase. Over the 12 months to March 2024, CPI rose by 3.6 per cent. Whilst the annual rate of inflation is trending downwards, the quarterly figure increased by 0.4 per cent and poses ongoing challenges. continue…

by Brett Craig Posted in Aura Group.

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In a constantly evolving investment landscape, private credit stands out as an important opportunity, especially for those seeking alternatives to traditional income solutions and volatile public markets. Private credit is an option for investing that, for example, can generate potentially superior income streams to those from owning bank shares, but without the risk to capital that comes with the stock market.  continue…

by Roger Montgomery Posted in Aura Group.

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The monthly household spending indicator released by the Australian Bureau of Statistics (ABS) last week, is an additional data point crucial to the Reserve Bank of Australia’s (RBA’s) ongoing monitoring and decision making. Household spending was 3.6 per cent higher than this time last year. This follows a slight dip we saw in December 2023. The ABS reported a 1.2 per cent increase in December 2023 and 2.9 per cent increase in January 2024.   continue…

by Brett Craig Posted in Aura Group, Economics.

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The Australian Bureau of Statistics (ABS) last week, released the monthly Consumer Price Index (CPI) figures for February. The consumer price index is a measure of inflation published by the Australian Bureau of Statistics. The monthly CPI read came in at 3.4 per cent in the 12 months to February 2024. The rate has now remained unchanged for three consecutive months. When excluding the volatile items, which included fuel, fruit and vegetables, and holiday travel, the CPI level was 3.9 per cent. This is a downward revision from the 4.1 per cent reported in January.  continue…

by Brett Craig Posted in Aura Group, Economics, Editor's Pick.

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The Reserve Bank of Australia (RBA) board left the cash rate on hold at 4.35 per cent last week, in line with market expectations. The decision was made off the basis that “inflation continues to moderate, but remains high.” continue…

by Brett Craig Posted in Aura Group, Economics.

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Investors in the Aura High Yield SME Fund (for wholesale investors) have experienced returns of 9.61 per cent per annum, since inception, earning monthly cash income with no negative months nor loss of capital. *

In a world where the interest rate tide has been rising, savvy investors are sailing towards more stable horizons. The Aura High Yield SME Fund, designed for wholesale investors, has emerged as a beacon of consistent returns, offering a compelling case for investors looking to diversify their portfolios away from volatile seas. continue…

by Roger Montgomery Posted in Aura Group.

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The latest monthly consumer price index (CPI) read released last week, came in unexpectedly lower than anticipated, at 4.9 per cent in the 12 months to October. This follows the previous read of 5.6 per cent in September. With the 8.4 per cent peak recorded in December, inflation is continuing to follow a downward trend off the back of the Reserve Bank of Australia’s (RBA) best efforts to raise interest rates in order to achieve a slowdown in inflation. continue…

by Brett Craig Posted in Aura Group.

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On the day of the Melbourne Cup, the Reserve Bank of Australia (RBA) announced an increase of the official cash rate to 4.35 per cent. Interestingly, the term deposit rates offered by my friendly bank remained the same as the previous week. This suggested an unwillingness of the bank to increase interest rates on deposits, despite the 13^th RBA official cash rate hike in the past 18 months. continue…

by David Buckland Posted in Aura Group, Market commentary.

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