The budget was reasonably benign when it came to stock market impacts as the government was leading into an election. Some of those most impacted were the aged care providers such as Regis Healthcare, Estia Health and Japara Healthcare as the government looked to impose tighter funding criteria to slow down the growth in expenditure on aged care. Even this though was a slowing in growth rather than outright cuts to funding. We have had a positive view towards the sector as the ageing population continues to drive demand. However, there has been some strong share price appreciation recently, and the reliance on the government for funding cannot be dismissed as an ongoing risk. We are neutral towards the space with a preference for Regis as exposure. (Sean Fenton, Portfolio Manager, Tribeca Investment Partners)
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