Theformer head of Australian Unity Funds Management, Craig Dunstan, is setting up his own boutique fund management operation in Melbourne.
MacarthurCook Investment Managers will specialise in property and mortgage assets when it commences operation in October.
Dunstan says he is working with the Australian Securities and Investments Commission (ASIC) on a licence and is also negotiating on the acquisition of a couple of property and mortgage funds.
“Our aim is to have a profitable level of funds under management in the first year and achieve consistent first and second quartile performance,” he says.
“Property and mortgage assets are relatively neglected among institutional asset managers.”
He says the company aims to bring a disciplined investment approach to these asset classes. The target market will be older investors looking for retirement income stream-type products.
The initial products will be property syndicates, mortgage trusts and the management of healthcare property.
Dunstan says the aim is to create a long-term business with $600 million of funds under management by 2005.
MacarthurCook is seeking alliances with companies that can provide back-office support and distribution. Dunstan says he will be targeting both wholesale and retail clients through advisers and mater trusts.
“Currently, MacarthurCook is discussing with a number of institutions about the prospect of them acquiring up to a 25 per cent stake in the business,” he says.
“These firms will assist with the distribution of the company’s products.”
Future staff will also be shareholders in the company, Dunstan says.
