David French | 29/11/2010 12:30:33 PM

This article was first published in The Morning Bulletin under the heading Income Returns dated 18 September 2010.

Jim Pearce’s fly-in, fly-out (FIFO) comments in last Saturday’s Morning Bulletin, echo the feelings of many in Central Queensland. The fact is however, FIFO is a symptom of a bigger problem, and consequently the complaints against it really amount to populist spruiking. The bigger problem is that of developing a well-balanced community in remote areas. Even with the best of intentions company built towns will never have the facilities and opportunities offered by capital cities, or even large regional centres. Children not wanting to pursue mining work generally have to move away, and those that stay are subject to the vagaries of commodity markets. Ghost towns develop if resources dwindle or become uneconomic to exploit. Unless the mining companies own all of the houses, and provide all the infrastructure, these risks fall to the workers.

The future growth in our region is not in mining or in oil and gas per se, but in servicing and making investments in those growth industries. This is Rockhampton’s history. There are many reasons to choose Central Queensland as home, but unless the thinking changes, notwithstanding the resources boom, our communities will fall further and further behind. In a fly-in, fly-out environment, much better commuter transport links between employee residences and the “coal face” are key to Rockhampton and the Capricorn Coast becoming a viable alternative to Brisbane for mining workers.

While futile debates rage, many businesses in the region are stepping up to the plate. My own business, Capricorn Investment Partners Limited has just launched a managed fund which, amongst other things, gives residents of Central Queensland the opportunity to participate financially in the region’s growth. The fund has no entry of exit fees, and a management expense about 20 per cent lower than comparable retail funds. It will hold a diversified portfolio of assets ranging from shares, property and bonds, and will actively look to participate in investment opportunities thrown up throughout the region. The fund is targeting an income return of 8 per cent per annum, and additional capital growth. Over the last 10 years, CIPL’s growth is testimony that it is possible to run a sophisticated financial services business from Central Queensland. Unlike the magnesium, tanning or galvanising plants, CIPL never made the front page of the paper – we have just got on with building a business. After 2 years of very hard work, CQ now has a new industry to boot.

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.

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• Capricorn Diversified Investment Fund