The aches and pains of aged care: Low rates and high pressure

Aged-care-whitepaper
Scott Hawker

Scott Hawker

National Manager, Not-for-Profit Endowments

AGED CARE INVESTMENT WHITE PAPER

The aches and pains of aged care: Low rates and high pressure

Aged care operators have been having a tough time lately. As well as a drop in occupancy due to the softening housing market, rapid and substantial regulatory change and looming outcomes from the Royal Commission into Aged Care Quality and Safety, they are also facing increasing financial pressure due to low interest rates.

When it comes to investing, many aged care operators have a conservative strategy, prioritising safety and liquidity over returns. But with interest rates at record lows, and likely to stay that way for some time, these conservative strategies are likely to deliver diminishing returns. It’s time for CEOs, CFOs and boards to look beyond term deposits to ease the pressure on their balance sheets.

This white paper examines the current disruption in the aged care sector and the external forces which are likely to continue placing increasing pressure on the sector’s profitability. It then provides strategies for aged care executives, boards and finance teams on how to increase revenue from investments, while minimising risk.


If you would like to discuss your organisation’s investment needs contact the white paper’s author, Scott Hawker, Perpetual’s National Manager for Not-for-Profit Endowments.
E: scott.hawker@perpetual.com.au
T: 02 9229 9319


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This paper has been prepared by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643 for aged care providers only. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial or professional adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

The information in this paper is believed to be accurate at the time of compilation and is provided in good faith. This paper may contain information contributed by third parties. PTCo does not warrant the accuracy or completeness of any information 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.

No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any product or the return of an investor’s capital. Past performance is not indicative of future performance.

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