Assirt rates MacarthurCook but issues warning
Boutique property fund manager MacarthurCook Investment Managers has been given an encouraging assessment by ,Assirtbut the research house raises concerns over the risks facing property and mortgage managers at this point in the investment cycle.
Assirt, which awarded MacarthurCook’s direct property and mortgage offerings competent and strong ratings respectively, says that while it is conscious some members of the investment team have not worked together in the past it is comfortable each member has carefully considered their decision to join the firm and are individually committed to its success.
Given MacarthurCook’s relatively quick expansion Assirt believes the number of existing staff is adequate.
“However we believe the team will require continued growth, especially on the direct property side, as more assets are acquired,” the research house states.
Despite the review, Assirt believes there is risk in launching a property and mortgage manager at the current point in the investment cycle.
“While property and mortgages are important long-term asset classes, we question how much longer these sectors will run for. It is possible that MacarthurCook is launching near the top of the market cycle, which may subsequently impact their ability to achieve short-term organic business growth.”
Meanwhile Assirt also states that MacarthurCook has significant shareholder support from businesses that understand funds management, and ensures shareholder expectation of business growth and actual growth are aligned.
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