Alternative Investments - Long Term Care

It is 70 years since the NHS, the UK public healthcare system was launched.

One of the major problems that has become more and more apparent is that the need to fill gaps with private investing is now paramount to deliver services to an ageing population.

Analysts have predicted a 30% increase in the over 65s in the next few years, and priority need for care in the over 80s becoming critical.

*Piers Sword, a partner at Montreux Capital Management, a boutique investment firm specialising in the UK care market, says more people are living with learning difficulties, mental health issues, and physical injuries. “Within that there is a duty of responsibility, particularly in learning disabilities and mental health, which falls on the government,” he says. “It does not have the most appropriate or the most effective infrastructure with which to provide care. This is where the private sector steps in.”

Most investment groups focus on three areas, retirement living, GP surgeries and care/nursing homes. With the larger groups having upwards of £1.5bn of assets. Over the past few decades many large pension funds have started investing into these types of Alternative funds as returns from Hedge Funds and Bonds have fallen.

Investors looking for steady and unspectacular returns can achieve around 7-9% year on year within the last cycle. These returns have been achieved with minimal volatility and have significantly outperformed Hedge and Bond funds especially over the last few years.

Companies like Montreux have built up a good reputation by providing investors with good returns and minimal volatility by investing in the Long Term Care sector.

Astraasia use the Montreux Care Home Fund for clients looking for secure low volatility funds as they have historically provided consistent and steady returns.

Article written by: David Derbyshire @ Bondal Shore

*Piers Sword is a partner, and board member of MCM UK. His quote is reproduced from IPE Real Assets magazine.*

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