Invest
Achieving portfolio diversification through an island
Investors are well-versed in the importance of diversification, but one investor has taken this a step further and achieved diversification through the purchase of an Australian icon.
Achieving portfolio diversification through an island
Investors are well-versed in the importance of diversification, but one investor has taken this a step further and achieved diversification through the purchase of an Australian icon.

Investment fund Mayfair 101 recently announced its purchase of former tourism hotspot Dunk Island as well as entering a contract to purchase properties on the mainland as a way to diversify itself into the area of unlisted assets.
In a conversation with nestegg, managing direct of Mayfair 101 James Mawhinney has explained how he is achieving diversification and the extra benefits of the investment that will see wide-reaching impacts on the region.
“From personal experience many years ago, I made the mistake of not diversifying and putting all my eggs in one basket,” Mr Mawhinney prefaced.
“Admittedly, I learnt the hard way [that] diversification, regardless of how bullish you are about a particular investment, is needed.”

Despite having a portfolio spread across 10 countries, 10 sectors, five major currencies, and also investing in businesses at various stages in the life cycle, Mr Mawhinney’s investment team made the decision to move capital into unlisted assets.
“It’s part of our diversification strategy. We already have international real estate; we have fintech companies and businesses in emerging markets,” he said.
“Australian real estate and hospitality is just part of our strategy.”
Creating a ‘tourism Mecca’
Not only does the purchase of unlisted assets allow Mr Mawhinney to diversify Mayfair 101’s assets, it will allow the fund an opportunity for strong growth in the sector.
Mr Mawhinney believes his purchase of Dunk Island and Mission Beach will create a “tourism Mecca”, becoming a central hub in Asia Pacific.
To make it into the tourism Mecca, “you attract architects, restaurants, retail outlets and create a service level they can’t get elsewhere in Australia,” Mr Mawhinney said.
He’s compared it with Bali and Mykonos, where Australians go to avoid the winter.
For Mr Mawhinney, far north Queensland could offer a similar experience with stronger natural beauty.
Impact on the region
The fund finally noted the new assets not only benefit Mayfair 101 and its clients, but also the broader Australian economy.
It will allow for an Australian asset to remain in the hands of Australian business, while creating employment opportunities in the region.
An independent report has considered the flow-on effects of rejuvenating the closest island to the Great Barrier Reef would create $1.6 billion in investments as well as add 10,000 jobs to the area over the next decade.
nestegg has previously reported on Mayfair 101’s acquisition of Mission Beach assets and Dunk Island.
About the author

About the author


Commodity
Is crypto getting the shaft for a big gold re-polish?
While the spotlight shines on trendy cryptocurrencies, investors evidently haven’t lost interest in traditional and tangible commodities like precious metals. Read more

Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery planRead more

Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. Read more

Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. Read more

Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led economic ...Read more

Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. Read more

Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. Read more

Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from ...Read more

Commodity
Is crypto getting the shaft for a big gold re-polish?
While the spotlight shines on trendy cryptocurrencies, investors evidently haven’t lost interest in traditional and tangible commodities like precious metals. Read more

Commodity
Morrison’s gas-led recovery sees manufacturers ‘held to ransom’ by gas cartel
Australia’s manufacturing sector and its workers are being ‘held to ransom’ by the gas cartel, despite the Morrison government promising cheap gas as a key policy in the COVID-19 recovery planRead more

Commodity
‘Investors should take note’: Gas-led recovery to lead to stranded assets
Australia’s gas-led economic recovery could be relying on inaccurate financial assumptions, new research has revealed. Read more

Commodity
Credibility up in flames as government opens 21 new gas and oil exploration sites
Climate groups are saying the Morrison government lacks any credibility when it comes to climate change after it announced 21 new gas and oil exploration areas. Read more

Commodity
Morrison urged to drop gas-led recovery after new global warning
The International Energy Agency has found that countries like Australia need to transition their energy grid within 14 years to reach net zero, defying Prime Minister Scott Morrison’s gas-led economic ...Read more

Commodity
Taxpayers to bear brunt of Morrison’s $2bn pledge to oil refineries
Taxpayers are set to be on the hook for up to $2 billion over the next decade as the government commits to protecting two oil refineries. Read more

Commodity
Government unveils $1bn energy deal
The Morrison government has announced a $1.1 billion energy and emissions agreement between the federal and South Australian state government. Read more

Commodity
Australia can get rid of coal without prices skyrocketing
Australia’s transition to renewable energy is unlikely to create unaffordable electricity prices or come at the risk to reliability, with policymakers urged to generate the majority of power from ...Read more