Dexus in Westpac snafu
A cascade of frozen funds has the property giant in a quagmire.
Most large and diversified fund managers will step on a rabbit trap every four or five years. Whether it's a star fund manager gone rogue, or a socially-aware fund caught owning shares in a maker of land mines, controversy and/or mightily miffed investors are always lurking just beneath the surface.
Spare a thought, then, for the diversified property fund-turned fund manager Dexus, where several vehicles managed by the company are caught in kerfuffles that have made investors irate, nervous or both. While not all of the problems were caused by Dexus' management, institutional and high net worth investors seek out a cat to kick when funds are frozen or have suffered large write-downs.
Right now, more than a few big names in Sydney and Melbourne are in a bad gruntle towards Dexus. The company's leading lights – chairman Warwick Negus and managing director Ross Du Vernet – have a job on their hands hosing down angry clients.