Dixon Advisory
 | |
| Founded | 1986 |
|---|---|
| Founders | Daryl Dixon and Kate Dixon |
| Defunct | 2022 |
| Fate | Voluntary insolvancy |
| Parent | Evans Dixon |
| Website | www |
Dixon Advisory was the fourth largest self-managed superfund provider in Australia, and a subsidiary of Evans Dixon.[1] Founded in 1986, the company filed for voluntary administration in 2022.
History
[edit]Founding and growth
[edit]Dixon Advisory was established by Daryl Dixon[2] and his wife Kate Dixon in 1986[3] and served as executive chairman of the company.[4] By 2000 the firm had grown to 350 employees.[5] Dixon Advisory was the fourth largest self-managed super fund provider in Australia.[6] In 2012, Daryl Dixon's son, Alan Dixon, assumed leadership of the company.[7][8]
By 2015 the company had 4500 SMSFs under management, worth about $5 billion, and had around 8000 SMSF members.[2] Dixon Advisory officials have also discussed national financial issues in the Australian media.[9]
In 2017 the company merged with Evans & Partners into the company Evans Dixon, which became Dixon Advisory's parent company.[10] The resulting company was a combined $18 billion wealth advisor firm.[11] In 2018, its parent company was listed on the Australian Stock Exchange, raising $170 million in its IPO. After its first day of trading, the company had a $580.2 million market capitalization.[12]
Investment in U.S. property market
[edit]In the mid 2010s, Dixon Advisory began operating its own investments for the first time, including creating and running United States-invested property funds.[8] Many of its properties were located in Jersey City, New Jersey and, according to Jacobin, it was landlord to "scores of Jersey City renters".[13][14]
The Dixon investments in the U.S. property market ultimately crashed, with some funds losing up to 90 percent of their value and the firm's investors claiming to have lost more than $350 million.[8][15]
Political activity
[edit]The firm donated heavily to the political campaigns of Jersey City mayor Steven Fulop, including a $200,000 donation to a Fulop-aligned Super PAC.[16][13] Fulop subsequently cancelled property value reassessments that threatened to raise taxes on Dixon Advisory-owned properties.[13] The firm also helped renovate both the mayor's primary residence and his Rhode Island beach home for what one local real estate website estimated was almost at-cost.[13][17] In a separate deal, Fulop arranged to purchase a "trophy" property from Dixon Advisory for his personal use that was never advertised to the public.[13]
Insolvency
[edit]Alan Dixon stepped down from the company in 2019 and, in 2020, the Australian Securities and Investments Commission, initiated action in the Federal Court of Australia against the company, leading to a $7.2 million penalty against the firm for not acting in the best interest of its clients.[8][18] In 2021, a class action lawsuit was filed against Dixon Advisory by investors who alleged they had lost significant sums of money due to its advice.[19]
In 2022, it was announced that Dixon Advisory had filed for voluntary administration, with the company facing an increasing number of claims and potential liabilities.[20] The company's former clients were expected to recoup their losses at four cents on the dollar after the liquidation of its assets.[21]
US business
[edit]In the United States, the company operated under the name Dixon Advisory USA. Investments included the purchase and renovation of residential property in New York City. Dixon Advisory USA has since been closed.[22] The department previously oversaw a $590 million US Residential Masters Property fund.[23]
References
[edit]- ^ Reporter (14 May 2018). "Parent company of Dixon Advisory lists on ASX".
- ^ a b Danckert, Sarah (4 August 2015). "Dixon Advisory fined for SMSF ads". The Sydney Morning Herald.
- ^ "Evans Dixon merger sealed on the golf course". 28 September 2016.
- ^ Dixon, Daryl (30 June 2018). "Maximising dividend payouts". The Sydney Morning Herald.
- ^ "Sage soothes Dixon Advisory's growing pains - featured in the esteemed The Australian newspaper".
- ^ "The Australian Business Awards 2012 - Service Excellence Award (SXA)". www.businessawards.com.au.
- ^ Creswell, Julie (19 November 2013). "G'Day From Bushwick". New York Times. Retrieved 11 September 2023.
- ^ a b c d Hely, Susan (21 January 2022). "Dixon in administration: What it means for investors". Money Magazine Australia. Retrieved 11 September 2023.
- ^ Cormack, Lucy (15 June 2017). "Women expect to retire with $200,000 less than men in superannuation". The Sydney Morning Herald.
- ^ "Heraldsun.com.au - Subscribe to the Herald Sun for exclusive stories". www.heraldsun.com.au.
- ^ "Evans Dixon defends business model". 17 April 2018.
- ^ Vickovich, Aleks (14 May 2018). "Dixon Advisory parent lists on ASX".
- ^ a b c d e Morrill, Aaron (6 February 2022). "Australian Developer that Backed the Mayor Goes Under Down Under". Jersey City Times. Retrieved 11 September 2023.
- ^ Ephros, Jake (August 2022). "In Jersey City, It's Socialists Versus the Machine". Jacobin. Retrieved 1 November 2023.
- ^ Simmons, David (16 December 2022). "Dixon Advisory creditors vote in favour of deed of company arrangement". Business News Australia. Retrieved 11 September 2023.
- ^ Friedman, Matt (29 January 2016). "Fewer than 150 donors gave $3.2M to Fulop-aligned super PAC". Politico. Retrieved 1 November 2023.
- ^ Shapiro, Jonathan (19 June 2019). "Dixon ties to local US politicians questioned". Australian Financial Review. Retrieved 11 September 2023.
- ^ Shapiro, Jonathan (19 September 2022). "Dixon Advisory to pay $7.2m for breaching best interest rules". Australian Financial Review. Retrieved 11 September 2023.
- ^ Griffiths, Neil (4 November 2021). "Class action filed against wealth manager and former director". Independent Financial Advisor. Retrieved 11 September 2023.
- ^ "Dixon Advisory files for voluntary administration". SMSF Adviser. 21 January 2021.
- ^ Shapiro, Jonathan (30 November 2022). "Dixon Advisory clients to receive pittance under deed of arrangement". Australian Financial Review. Retrieved 16 September 2023.
- ^ "The buyers keep on coming for Bed-Stuy rowhouses - Brooklyn Daily Eagle". www.brooklyneagle.com. 22 March 2012.
- ^ "Dixon funds announce buybacks as clients back Evans Dixon IPO". 3 May 2018.