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
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more
Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more
Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more
Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more
Commodity
Morrison’s technology roadmap slammed
The latest Coalition energy initiative has been slammed by a union body, which claimed that it is a substitute for a coherent national energy climate policy. ...Read more
Commodity
What’s so precious about metal?
As countries continue to battle the COVID-19 health pandemic, investors are turning to the safe havens of precious metals — a trend that’s likely to continue, according to an expert. ...Read more
Commodity
Global chocolate consumption melts on COVID-19 outbreak
The COVID-19 crisis has taken a bite out of chocolate sales, collapsing the price of cocoa, according to new research. ...Read more
Commodity
What’s up with the price of gold?
In today’s negative yield environment, buying gold to diversify and decrease market volatility “has never been so favourable” – and it’s why the price of gold is peaking, according to a mark...Read more
Commodity
2021 to kick off 3-year-long investor heaven, property investors predict
Property investors unanimously agree that 2021 will kick off a three-year favourable investor environment with strong price growth. ...Read more
Commodity
Joining the buyers club: How to build a hefty passive income in your 20s or 70s?
“2021 is going to be the year of low stock levels, low interest rates, increased confidence and the chase for yield as people look to replace their incomes.” ...Read more
Commodity
How this investor entered the market 4 years after the last boom
Although he looked to capitalise on Sydney’s property boom a decade ago, luck would have it that Rizul Makkar would only begin to build his property portfolio four years later. ...Read more
Commodity
Electricity price hikes are coming, expert warns
The opening of Santos’ Narrabri gas pipeline will likely see consumers pay a higher price for gas, an expert has said. ...Read more
Commodity
Morrison’s technology roadmap slammed
The latest Coalition energy initiative has been slammed by a union body, which claimed that it is a substitute for a coherent national energy climate policy. ...Read more
Commodity
What’s so precious about metal?
As countries continue to battle the COVID-19 health pandemic, investors are turning to the safe havens of precious metals — a trend that’s likely to continue, according to an expert. ...Read more
Commodity
Global chocolate consumption melts on COVID-19 outbreak
The COVID-19 crisis has taken a bite out of chocolate sales, collapsing the price of cocoa, according to new research. ...Read more
Commodity
What’s up with the price of gold?
In today’s negative yield environment, buying gold to diversify and decrease market volatility “has never been so favourable” – and it’s why the price of gold is peaking, according to a mark...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
