The compounding power of healthcare ecosystems

The economy is a key driver for a lot of things, but not for the healthcare sector. The key driver for the healthcare sector is Australia's growing and ageing population.

Since 2004 the volatility in the healthcare sector has been one of the lowest across all asset classes and the risk-adjusted returns that have been achieved have been due to three main areas.

• Healthcare expenditure is largely non-discretionary.
• It's very well-funded by both the state and federal government
• There are huge capital costs for the anchor tenants in these buildings and the services they offer, including pathology, radiology, physio, dental, and a chemist, which together forms a healthcare ecosystem.

Elanor Investor Group is a real estate funds management business listed on the Australian stock exchange, with in excess of two billion dollars, worth of assets under management, concentrating on four key market sectors: Office, healthcare, retail, hotel, tourism, and leisure. 

Watch the video below to learn how their investment in 5 key healthcare ecosystems has won a return of 7.4% per annum since inception.