There’s more to being truly healthy in life than good health. It’s argued that financial security can be just as important for your overall wellbeing as physical health and while knowing that your money is safe may not buy you good health, it will certainly help you feel more relaxed and allow you to get on with the business of living.
In these uncertain economic times many of us are feeling the stress of the global financial crisis. The question of the moment is: where is the best place to invest our money? The sharemarket is still volatile and domestic housing prices are falling in many areas, so it’s important to stay informed about investments and the industries that pose the least amount of risk during these tough economic times.
Healthcare – hospitals, doctors and health clinics – is one of the main industries that is unlikely to be affected by a bad economy.
“The healthcare sector is very immune to changes in discretionary spending,” says Chris Smith, portfolio manager of the Australian Unity Healthcare Property Trust.
“For example, if unemployment increases, the economy will feel the tension, and so will businesses in general, as there is less money to go around. But healthcare is essential, so the sector is less likely to be affected by changes in the economy.”
In other words, while people might cut back on holidays or luxury items, everyone still needs healthcare services. Over the next decade there is likely to be an increasing demand for health services in Australia as people live longer and the population ages.
How can I invest in healthcare?
The Healthcare Property Trust combines investment in property and the healthcare industry. Through the Trust you can invest in properties in the health industry, which are collectively worth over $400 million (as at 31 May 2009). The Trust owns over 20 properties across Australia including hospitals, GP clinics, nursing homes, day surgeries, consulting rooms, rehabilitation units, radiology and pathology centres.
The Trust selects properties that are leaders in their city, town or region and then manages them to ensure ongoing rental income in the long term. Between 75 and 100 percent of the Trust’s assets are in direct healthcare property, with the remainder held in listed and unlisted property investments and cash.
How did the Trust start?
The Healthcare Property Trust was established in 1999 and was the first healthcare property trust in Australia. Today it is the largest trust of its kind in the market.
“Our Trust is strongly diversified, with investments in a range of areas,” says Chris. “This provides investors with a lower level of risk.”
Diversification means the properties held in the Trust are located in a wide range of locations, from Queensland and South Australia to New South Wales and Victoria. There is also diversity in the range of services provided at each property – from hospitals to medical clinics to allied health services, with a range of tenants and different lease terms.
How can I invest in the Trust?
You can invest in the Healthcare Property Trust with a minimum investment of $1000 for retail units or $25,000 for wholesale units. Income distributions are paid quarterly, and the Trust currently provides periodic withdrawal opportunities. The Trust may also act as a diversifier in an investment portfolio and provides a stabiliser against more volatile assets like shares.
Australian Unity Investments has also recently introduced a new category of units – Class A units – in the Trust.
If you’re looking for a way to diversify your investments during this time of current economic uncertainty, the Australian Unity Healthcare Property Trust provides an investment opportunity with a proven performance track record. Whatever happens to the economy, people will always need healthcare – after all, there’s nothing more important.
Important information
This information has been prepared by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No 234454 (issuer of the Australian Unity Healthcare Property Trust). It contains general information only and does not take into account your individual objectives, personal circumstances, financial situation or needs. Decisions relating to a financial investment should only be based upon a consideration of your overall objectives, current and anticipated situation or needs, and should not be influenced by historical data such as past performance. While every care has been taken in the preparation of this information, we reserve the right to make corrections. You should read the relevant, current Product Disclosure Statement (PDS) before deciding whether to acquire or to continue to hold a product. You can obtain a copy of the current PDS by contacting 1800 649 033 or by visiting our website at www.australianunityinvestments.com.au
JUNE 2009