Investment strategy for aged care providers


Perpetual Impact

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Providers in the aged care sector have much to think about. In addition to the day-to-day challenges of caring for their clients and managing the concerns of clients’ families, they also have strategic issues to consider. Aged care providers are facing a more competitive environment, have rising compliance costs, a need to expand quality infrastructure, and are seeking to invest more in their staff.

All this takes money – and herein lies another challenge. The investment strategies that underpin their services need to be appropriate for their operations and meet ever-stricter regulatory hurdles. The Royal Commission into Aged Care Quality and Safety established in October 2018 makes this task even more important.

Scott Hawker is Perpetual’s National Manager, Not for Profit Endowments. In this video interview he talks about:

The need for aged care providers to balance liquidity and long-term returns

This is the trade-off all investors face between easy access to cash and the need to earn a rate of return that will help them fund expenses that grow over time.

The importance of a clear investment philosophy

Key to success is the Board and C-Suite agreeing a clear investment philosophy that meets the unique needs of the organisation. For many organisations this will mean balancing short and long-term needs, cashflow management and the always important issue of risk versus return. Larger not-for-profit aged care providers have a substantial ‘float’ of investable funds, and a long horizon that may suit growth-orientated portfolios. Smaller operations are more likely to meet critical mass issues and prefer a more conservative approach.

The importance of investment strategy governance

It’s not enough to have a great investment strategy – it must be documented and adhered to through the market cycle. This layer of committed governance is what helps an organisation manage major policy decisions (such as whether to divest an asset and what to do with the proceeds). In addition to policy and investment rigour, a good governance model provides the transparency that is critical when the Royal Commission is placing every aspect of aged care management under scrutiny.

Looking for advice regarding your organisation’s investment strategy?

If you’d like to learn more about the services Perpetual provides to the Aged Care sector, call Scott Hawker on 02 9229 9319 or



If you’re in Sydney or Melbourne, come along to our Aged Care Investment Strategy events in September, specifically designed for CFOs, finance executives and board members of aged care organisations.   

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Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This publication has been prepared by PTCo and may contain information contributed by third parties. It contains general information only and is not intended to provide you with advice or take into account your personal objectives, financial situation or needs. The information is believed to be accurate at the time of compilation and is provided by PTCo in good faith. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. PTCo does not warrant the accuracy or completeness of any wording in this document which was contributed by a third party. Any views expressed in this document are opinions of the author at the time of writing and do not constitute a recommendation to act. Past performance is not indicative of future performance.