The global financial services firm UBS has told the Sydney Morning Herald its preference for investing in retirement accommodation is in LLC’s over retirement villages because they offer a solution that is relevant to the biggest market segment.
Most baby boomers who retire won’t have enough superannuation to fund their retirement, making their home their only major asset, according to portfolio managers of UBS’ small companies fund, Stephen Wood and Victor Gomes.
“This is a significant problem. So we’re interested in companies that focus on providing retirement solutions for people with some assets but not a lot,” Mr Wood said.
The pair still sees opportunities for investors in the village sector.
“There is huge demand … and in the context of an investment market that’s gotten very skittish about disruption and everything digital, or about outsourcing, this is actually a space that cannot be outsourced, and cannot be disrupted,” Mr Wood said.