Dixon Advisory share trades

22-Apr-2010

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Publication: Cloud over Dixon Advisory share trades
Date: 22 April 2010 | by Lucinda Beaman

Trading in listed investment company Premium Investors by Dixon Advisory directors and management last year is understood to have been brought to the attention of the Australian Securities and Investments Commission.

Directors of high profile Canberra-based financial planning group Dixon Advisory may have failed in their bid to overthrow the Premium board, but they profited from the resulting share buy-backMoney Management obtained the share register for Premium Investors for 15 June, 2 October and 2 November 2009. The registers show a number of the directors and managers of Dixon Advisory acquired and disposed of shares in the listed company while seeking to overthrow its board and influence its share price.

On 17 June last year Dixon Advisory, on behalf of a number of retail investors, sought to have the existing Premium board replaced with Dixon Advisory directors Alan Dixon, Alex MacLachlan, Chris Brown and Chris Duffield.

The group also sought to change the company’s constitution to allow shareholders to direct the board to undertake a share buy-back, capital reduction or wind-up of the company.

By 8 August Premium and Dixon agreed the latter would withdraw its nominations for the board, but that a share buy-back proposal would be put to shareholders.

On the date of Dixon’s requisition Premium shares were valued at 0.65 cents. An off-market buy-back occurred on 9 October, with a discounted price of 0.87 cents per share, for up to 65 per cent of investors’ shares on issue.

Some of those who benefitted from the trading were Dixon Advisory managing director Alan Dixon, as well as Dixon strategy head Chris Brown, funds management head Alex MacLachlan, and executive directors of superannuation and financial advisory Robert Turner and Nerida Cole.

The registers show that none of the Dixon directors listed above had shareholdings in the company on 15 June or 2 November 2009, but did have shareholdings of between 7,000 and 950,000 each on 2 October.

Those with the most significant shareholdings on 2 October were Alan Dixon (trading as ‘Mr Orange’) with 951,532 shares, Chris Brown (trading as ‘El Diablo Holdings’) with 63,000 shares, and a super fund administered by Alex and Alison MacLachlan with 28,500 shares.

Robert and Lisa Turner (trading through the Bobby T Super Fund) held 134,098 shares while Nerida and Todd Cole held 7,142 shares.

Dixon’s head of property is Chris Duffield. Coincidentally, on 2 October more than 21,000 Premium shares were held by the Duffield Family Super Fund, administered by Robert and Danice Duffield. The fund did not hold shares on either 15 June or 2 November.

Dixon’s director of investment advisory is James Bailey. Similarly, the Bailey Retirement Fund and Penelope Bailey Super Fund acquired and disposed of more than 70,000 shares during the period. Those funds are administered by Penelope and Phillip Bailey.

A number of Dixon executives also sit on the boards and investment management committees of a number of other listed investment companies, which the group promotes to its client base. The group also offers direct share trading advice.

Dixon Advisory was successful in gaining control of the board of listed investment company van Eyk Three Pillars late last year. Recently, the new Dixon-led board announced a cash return amounting to 95 per cent of VTP’s gross tangible assets.