Lack of diversification and the value of Maori fisheries assets

Cameron Day and David Emanuel

New Zealand Economic Papers, 2010, vol. 44, issue 1, 61-73

Abstract: A company called Aotearoa Fisheries Limited (AFL) was established under the Maori Fisheries Act 2004 to own shares in various fisheries assets that were transferred to Maori tribes as part of the Treaty of Waitangi Fisheries Settlement. The shares may only be owned by 'mandated iwi organisations'. This limitation results in a significant cost as risk-averse investors require a premium when they cannot diversify freely. By comparing required returns of well-diversified owners and less well-diversified owners, we provide an illustration of the (potential) value discount of these fisheries assets relative to 'fair market value'.

Keywords: Maori fisheries; diversification (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1080/00779951003614073

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