Published 26 February 2021
LGIAsuper’s investment in a $750 million healthcare property trust has defied volatile market conditions and delivered solid returns for LGIAsuper members.
The Barwon Institutional Healthcare Property Fund (BIHPF) of private hospitals, pathology labs, mental health clinics and day surgeries has maintained an average annual return of 6.8% since its inception in 2016 and has outperformed many property investments during 2020, with latest available figures indicating a return of nearly 7% in the 12 months to 31 December 2020.
LGIAsuper’s Chief Investment Officer, Troy Rieck, said the decision to invest in BIHPF in 2016 reflected the fund’s commitment to seizing market opportunities early to deliver profitable results for members.
“While we couldn’t have foreseen the pandemic, LGIAsuper has long appreciated the important role healthcare assets play in a diversified portfolio,” Mr Rieck said. “Our portfolios are carefully constructed and diversified across a range of asset classes such as Australian shares, international shares, property, infrastructure, agricultural and alternative investments. Diversifying our investment portfolios reduces the exposure to any one particular asset and helps to minimise risk.”
The BIHPF has 17 investment properties in healthcare assets across six states and territories around Australia, including Victoria, New South Wales, Queensland (including Mackay, Townsville, Beenleigh and North Lakes) and the Australian Capital Territory.
Mr Rieck said the investment success was a testament to the profit-for-member super fund’s ability to access geographically diverse, niche markets and make substantial investments that deliver for members over the long term.
“As LGIAsuper is a boutique sized superannuation fund, we still retain our strong member focus and a nimbleness in the investment strategy. Investing into smaller assets with attractive risk-adjusted returns is a clear benefit for members of investing with LGIAsuper,” he said.
For more information on LGIAsuper and to seek advice on what investment option may be appropriate for you please call 1800 444 396 or visit lgiasuper.com.au.