Friday, 1 November 2013

Dixon Advisory's funds are ponzi schemes

Dixon Advisory & Superannuation Services preys on granny investors using a suite of scam investments that pay returns out of capital raisings. The Asian Masters Fund (AUF.AX) pays dividends and performs buybacks out of share issues, using the yield to attract more granny investors to issue shares to. The AUF share price has been ramped significantly above asset backing despite the company's perennial losses, rapacious management fees and heavily negative operational cashflow. In 2013 AUF had negative operational cashflow of $1.6m, down from negative $1.5m in 2012, yet paid out $2m in dividends and $24m in buybacks. This was made possible by issuing $28m worth of shares in 2012 (and even more shares in 2011). The operators of this ponzi scheme netted a cut of around $4m over the last two years, money stolen from granny investors, as shown in its annual report. 

Next, AUF will issue shares at the artificial price, marketing its fraudulent returns with ASIC's blessing. Dixon operates this scam under the protection of ASIC. Since ASIC has given its approval to the scam, no financial adviser could be faulted for recommending it, no journalist could be scolded for shilling it, and the criminals are in effect untouchable.

1 comment:

  1. Dixon Advisory are responsible for ruining the retirement aspirations of many of their clients. They have had approx 75% of their clients funds invested in their despicable LICs, over the last 7-8 years. The markets surged over this period while these funds flatlined or went backwards. How long before these frauds get found out?