Evans Dixon CEO steps aside to lead struggling US fund

Evans Dixon CEO steps aside to lead struggling US fund

Amidst falling profits and complaints over high fees and investment recommendations for its own in-house funds, financial advisory firm Evans Dixon (ASX: ED1) will see its CEO Alan Dixon (pictured) step aside to focus on the company's US residential property fund.

Executive chairman David Evans will act as a temporary CEO while an executive search process gets underway, and Dixon will remain an executive director.

When the announcement was made after the market's close yesterday ED1 shares were trading at $0.80. This is a sharp contrast to the $1.55 share price in mid-May and the $2.50 level after the firm's IPO in May 2018.

The May freefall was a response to an EBITDA forecast of $35-38 million for FY19, which surprised the market given the Sydney-based firm notched a profit of $50.1 million in FY18 and had even managed a 6 per cent improvement in the first half.

At the same time, Evans Dixon's US Masters Residential Property Fund (ASX: URF) has seen its share price fall by almost half in the past 18 months, and in its strategic review dividends were cut by 80 per cent.

Will Dixon be able to turn the tide on the other side of the Pacific?

"This move provides an opportunity for Alan to concentrate on implementing the outcome of the URF strategic review," says Evans.

"With his sole focus in the US for the foreseeable future, the Board and Alan agreed that identifying a new high calibre Chief Executive Officer for Evans Dixon made sense.

"While there are areas in the Evans Dixon business where we must and will improve performance, there have been many achievements for our business so far this year, and we remain focused on ensuring client expectations are met."

Evans notes that over the four months to the end of April ED1 grew its funds under advice (FUA) and funds under management (FUM) by 13 per cent, supported by positive net client growth, new fund raisings and positive investment markets. 

He highlights the Evans & Partners International Focus Portfolio was ranked number one out of 122 funds by Zenith over 12 months to 30 April with a 31 per cent return to clients, while the company's Global Disruption Fund returned 17 per cent over the same period. 

"In April, we listed our first offshore fund on the London Stock Exchange, the US Solar Fund (USF), raising US$200m from institutional and sophisticated investors to invest in US solar energy infrastructure via our existing New Energy Solar team," says Evans.

"Additionally, our Corporate and Institutional business is performing well, continuing to increase its market share in institutional equities and maintaining an encouraging transaction pipeline.

"Overall, we look forward to executing on the opportunities that present themselves across our business."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Car subscription software company Loopit eyes global markets after $3.6m seed round

Car subscription software company Loopit eyes global markets after $3.6m seed round

In a bid to enter new global markets and capitalise on the growing ...

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

As a consequence of our addiction to fast fashion, Australia sends ...

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

In an effort to appease Australian and New Zealand regulator concer...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...