Wellington Capital PIF/Octaviar (MFS) PIF

[SPLITPIN]

Re: Octaviar MFS Premuim Income Fund PIF

I agree SPLITPIN, ASIC have only intervened once that I am aware of (to our detriment), all my complaints are still lodged with them and lots more since to other avenues, and nothing has changed. The people responsible for our current situation have not been dealt with, the only difference is the blame appears to have been shifted. Seamisty

Dear Seamisty

As I recall it, everybody complained to ASIC and they (ASIC) acted as usual as it appears for political purposes only. It may have not been to our detriment for the future as many issues are recorded in transcript.

In regards to the blame it has never shifted in my opinion, it has always been with the MFS/Octaviar.

Not much has changed and we keep paying the bill.

Regards


Splitpin

 

[SPLITPIN]

Re: Octaviar MFS Premuim Income Fund PIF

I agree SPLITPIN, ..... Besides who else are you going to pay out apart from me?

Seamisty

Seamisty

Please explain what are you proposing to the PIF members and RE regarding these accounts from yourself and others, that may be considered as claims to the PIF.

Regards


Splitpin

 

[JohnH]

Re: Octaviar MFS Premuim Income Fund PIF

Seamisty

Please explain what are you proposing to the PIF members and RE regarding these accounts from yourself and others, that may be considered as claims to the PIF.

Regards


Splitpin

Sounds like the once Member for Oxley

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Another trade went through today. 10,000 units @ 20c.

Average of the 92,270 units exchanged on the NSX so far is 23c

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

The 4Cs I want from WC PIF:

Credibility
Communication
Constancy
Cash

 

[Jadel]

Re: Octaviar MFS Premium Income Fund PIF

Another trade went through today. 10,000 units @ 20c.

Average of the 92,270 units exchanged on the NSX so far is 23c

Duped

It is a tragedy, but this is only the beginning

I believe this will be the trading range for many years to come.

Your lucky to be a Young Fellah

Just imagine in twenty years time you will still be around to maybe get your money back

And i will be pushing up the Daisies .

 

[JohnH]

Re: Octaviar MFS Premium Income Fund PIF

The 4Cs I want from WC PIF:

Credibility
Communication
Constancy
Cash

........and if you add Competence, Compassion and Confidence - we'll then have 7!!

 

[sume]

Re: Octaviar MFS Premium Income Fund PIF

hi all; this is my first attempt to post so be gentle with me. if jh paid "north of $20m for the pif and the writen down value is $400m and she is going to recieve 0.7c p.a. i estimate that it will take over seven years just to get her money back.providing the fund doesn't drop below that amount, and if as some one wrote on this blog that she paid between $20m and $30m it could be as long as eleven years. it doesn't seem like a very smart deal to me.

 

[Jadel]

Re: Octaviar MFS Premium Income Fund PIF

Hi Sume

Glad to see some new people on here , keep posting

Actually JH has not paid a Red Razoo for the Fund at the moment

She only pays if and when the fund makes a profit .

 

[Juan Mortyme]

Re: Octaviar MFS Premium Income Fund PIF

The 4Cs I want from WC PIF:

Credibility
Communication
Constancy
Cash

Just hope you don't get these 4 C's:

Corruption
Chicanery
Craftiness
Cunningness

 

[sume]

Re: Octaviar MFS Premium Income Fund PIF

Hi Sume

Glad to see some new people on here , keep posting

Actually JH has not paid a Red Razoo for the Fund at the moment

She only pays if and when the fund makes a profit .

if she has not paid anything for it,by what right does she run the fund, my dear old dad used to say 'a mans heart is where his money is,if you havent got your money in it your hearts not in it'' and it's easy to spend someone elses money

 

[sume]

Re: Octaviar MFS Premuim Income Fund PIF

The Premium Income Fund yesterday sold its 9.4 per cent of Geo Property Group, the former MFS Diversified, to listed investment company Trojan Equity for $10.22 million.

At 25.5 a share, this represents a significant discount to Geo's closing price yesterday of 39 cents.

Buyer Trojan Capital is chaired by Andrew Kemp.

Both sat on the board of Chris Scott's S8 group before it was sold to MFS.

Trojan Equity managing director Troy Harry said the company had done "a pretty good deal" but denied getting mates' rates.

Under the terms of the deal, the PIF receives 40 per cent of any profit Trojan makes by selling the Geo scrip.

"They (the PIF) have an urgent need for funds," Mr Harry said.

"They were able to meet their requirement for cash now and also provide some upside for their unit holders."

My concerns are again that the Octaviar PIF's sale to Wellington Capital will also be at "mates rates" - there must be a law against this, to protect investor capital!!

what happens when trojan equity sells the geo script to trojan equity investments for the same money or at a loss? whats 40% of zero

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

if she has not paid anything for it,by what right does she run the fund, my dear old dad used to say 'a mans heart is where his money is,if you havent got your money in it your hearts not in it'' and it's easy to spend someone elses money

Welcome to the forum sume, I will post an earlier press release in relation to the Call Option Deed in regard to WC management of the PIF::::
9 May 2008
Acquisition of Octaviar Investment Management Limited
Wellington Capital today announced that it had entered into a Call Option Deed with a wholly owned
subsidiary of Octaviar Limited which grants Wellington Capital an option to purchase the shares held by the
Octaviar Limited subsidiary in Octaviar Investment Management Limited, the responsible entity of:
Octaviar Premium Income Fund ARSN 090 687 577
Octaviar Wholesale Premium Income Fund ARSN 107 973 071
Octaviar Cash Enhanced Fund ARSN 118 285 760
Octaviar Maximum Yield Fund ARSN 109 106 658
Octaviar Dynamic Growth Equity Fund ARSN 121 883 020.
On 2 May 2008, the existing directors of Octaviar Investment Management resigned and a new board was
appointed, comprising:
Jenny Hutson;
Robert Pitt; and
Craig Wallace.
Following execution of the Call Option Deed, Wellington Capital will be paid a management fee in relation
to Wellington Capital’s management of Octaviar Investment Management and its underlying funds. The call
option is exercisable by Wellington Capital at any time up to and including 31 August 2008.
In the event the Call Option is exercised, the purchase price payable by Wellington Capital for the
acquisition of Octaviar Investment Management will be equal to:
a multiple of four times the actual profit of Octaviar Investment Management for the 12 months
period following the acquisition; plus
the value of the net tangible assets of Octaviar Investment Management at the end of that 12 month
period.
‘The current staff of Octaviar Investment Management will work with the funds management team at
Wellington Capital to ensure an orderly transition and to ensure that Octaviar Investment Management
continues to be committed to working in the best interests of Unitholders during this difficult time to ensure
that, given current market conditions and the position of the funds, the best possible outcome is achieved for
Unitholders’, said Jenny Hutson, Managing Director of Wellington Capital.:::also refer page 63 of the explanatory memorandum :::::1: Management fee - The responsible entity is entitled to be paid a management fee of up to 0.7% per annum
(inclusive of GST) of the gross value of assets under management. As at 31 May 2008, the value of assets
under management was $413 million. Based on this amount, an annual management fee of up to $2.89 million
is payable to the responsible entity out of the Fund’s assets. No management fee will be charged until after 3
cents in cash has been paid to Unitholders.
2: Other management costs - The Fund’s ongoing costs are estimated at an amount equal to be approximately
0.32% (inclusive of GST) of the gross value of the assets of the Fund. As at 31 May 2008, the value of assets
of the Fund was $413 million. Based on this amount, the responsible entity forecasts the total other costs for
managing the Fund to be $1.32 million. Included in this amount are accounting, audit, custodian and compliance and committee costs.:::: Seamisty

 

[seamisty]

Re: Octaviar MFS Premuim Income Fund PIF

what happens when trojan equity sells the geo script to trojan equity investments for the same money or at a loss? whats 40% of zero

GPM is currently trading at around 13.5 cents per share, WC sold it to Trojan Equity for 25.5 so in hindsight we are no worse off IMO. Seamisty

 

[great dame]

Re: Octaviar MFS Premium Income Fund PIF

I have just been wondering If some of the PIF investors have found this all to much for them & have taken the big dive & endeared it all I guess we will never know / Dane //

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

...

Actually JH has not paid a Red Razoo for the Fund at the moment

She only pays if and when the fund makes a profit .

It's only if WIM make a profit before May 2009 that WC would have to pay anything for the PIF. WIM won't even exist by May 2009 so I can't see WC paying anything. See post #3582 for details.

 

[Jadel]

Re: Octaviar MFS Premium Income Fund PIF

It's only if WIM make a profit before May 2009 that WC would have to pay anything for the PIF. WIM won't even exist by May 2009 so I can't see WC paying anything. See post #3582 for details.

Thanks Dora

I remember it was 4 times profit for one year after she aquired the Fund
but was not exactly sure oF the dates.

Switching managment from WIM to WC to avoid paying any fees is really very cunning

However some OCV shareholders may see it in another light

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

... It is a tragedy, but this is only the beginning. I believe this will be the trading range for many years to come. Your lucky to be a Young Fellah. Just imagine in twenty years time you will still be around to maybe get your money back. And i will be pushing up the Daisies .

I hope you're wrong Jadel and we can celebrate together in the near future. You can count on me to toast to your health.

I'm saddened by how some of my generation have treated your generation in this. But I'm sure it's nothing new and feel fortunate I've learnt this lesson now. At your cost though.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

hi all; this is my first attempt to post so be gentle with me. if jh paid "north of $20m for the pif and the writen down value is $400m and she is going to recieve 0.7c p.a. i estimate that it will take over seven years just to get her money back.providing the fund doesn't drop below that amount, and if as some one wrote on this blog that she paid between $20m and $30m it could be as long as eleven years. it doesn't seem like a very smart deal to me.

Welcome sume.
From my interpretation, NSX rules require a fresh valuation by Dec31. I'd be be very surprised if the values don't go down.

From memory MFS/OCV GAVE WC $700K AND made around $4M available to the RE which presumably WC has accessed. WC have invested their reputation and a lot of time. In the absence of WC stating that they're running at a loss I'm going to assume that the 4.7M odd $ will keep them going until they can draw an income from PIF.

It wasn't long after the WC-MFS/OCV option was signed that the PTQ started firing legal shots at MFS/OCV. It wouldn't surprise me if unloading PIF was a substantial motivating factor for PTQ to get on with the job. But the PTQ may also have been duped into believing the booked value of the RE, not being aware of the financial acrobatics behind the scenes.

 

[sume]

Re: Octaviar MFS Premium Income Fund PIF

thanks seamisty. your information says wc will pay four times the profit for the first twelve months ,it would have to have been obvious that it was never going to show a profit and if by some mirical of miricals it did i'm sure some creative accounting would take care of that. on the matter of the value of the net tangible assets how is this worked out? i'm guessing that if they can't pay a three cent distribution then the net tangible assets are zero which is the amount that they will pay