Mixed Asset Portfolios or Asset Diversification
At some point the Directors of an AHC or its MIO representatives will need to consider the question of whether to restrict their business to fisheries only investments, or whether they would be willing to broaden their investment base into non-fisheries investments such as properties, equities etc...
Diversification of investment is about spreading risk across a range of investments. The theory is that should one investment do badly other investment classes, being different in nature, will continue to perform. Simply put, diversification is about not having all your eggs in one basket.
What is Strategic Governance?
The Maori Fisheries Act 2004 contains a unique provision that requires the trustees or representatives of a MIO to exercise “strategic governance” over the AHC and where relevant, any Subsidiary AHC, Fishing Company or Joint Venture.