Wellington Capital PIF/Octaviar (MFS) PIF

[lawry1dog]

Re: Octaviar MFS Premium Income Fund PIF

We have been unit holders of PIF since January 2007, in which we deposited all our life savings.
When we put in our redemption on the 20 January 2008, the PIF was frozen a few days later.

Of course since then we have not received any money at all from the PIF.
We did vote for Wellington to take over the fund, but not to go on the NSX.

The facts are the following:-
1. Wellington promised(or indicated) that we will get a 3c distribution by December 2008.
2. Wellington would then pay quarterly distributions.
3. Wellington proceeded with legal actions, to get owing funds from MFS(Octaviar) windup.
4. Public Trustee Queensland won their case, and Octaviar is to be liquidated.
5. Wellington did payoff the $100 million debt facility.
6. Wellington now have the strategy of selling 11 properties and consolidating the other properties.
7. The unit value has gone from 45c down to around 39c, at this point in time.
8. NSX prices range from 5.6 cents to 45 cents per Unit. The 45 cents was back on 22 October 2008.
The last 2 months it has gone from 6.6 cents to 12 cents. And now at 9 cents(15 September 2009).

The following is my conclusions:-
1. Wellington thought that Octaviar would not be completely liquidated, and thus receive around $22 million
from the Deeds of Agreement(which was squashed by the PTQ). This $22 million was going to pay the
3c distribution.
2. Wellington employed several legal firms on behalf of the PIF, but the PTQ(the government) won their
case, and so our PIF will receive an equal slice of the liquidated Octaviar, which will be a few million dollars,
but when. Our PIF has paid for all these legal actions.
3. Wellington is now back to square one, and our fund has no money to pay any 3c distribution or any other
payments.
4. Wellington is paying staff, CEO and administration, from the PIF fund.

From the above facts and conclusions, Wellington Capital, should resign and voluntary hand the PIF to someone
else(Perpetual or a Bank), to manage.
To my way of thinking, Wellington has mis-mangaged our funds, and paid themselves along the way. Nothing given to us.

If Wellington had sent a letter or memo, explaining the situation, and how sorry that things have not panned out
as expected, and giving us some sort of distribution(eg 1cent distribution), then I would be happy and not embark
sending opinions on their questionable performance.

We all make mistakes.















Regards
Kalvin

 

[charles36]

Re: Octaviar MFS Premium Income Fund PIF

Can any member of this forum enlighten me as to whom JH borrowed the $5 million dollars from to repay the remainder of the loan to RBOS. I believe the interest rate started at 20% and then escalated a further 5% to 25%. With our assets and no doubt contacts with banking organisations a loan of that size on security of our assets would have been at a commercial rate of approximately 8-10%. I have been trying since April to receive a reply to my inquiry of JH and have been ignored. I would appreciate an explanation. I have asked ASIC to inquire in my behalf but I have not received a REPLY. I can recall a unit holder asking JH for an explanation and was told that it would be revealed in the annual report. I also contacted Price Waterhouse and was told it was not the function of the auditor to inquire into the loan. Where are our rights and who do we turn to?.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Duper, I can see your point and that possibility is a worry to us all. We won't know how the situation will develop until the liquidators preliminary report on solvency and preference payments etc. Not sure how long this will take as Deloittes have done some work and the PTQ has information to present as discussed in McMurdo's judgement.

Most liquidators reports to creditors are available on their websites so hopefully we will get to see how the situation develops.

Charles 36, we would all like to know who the mystery lender is. It is appalling that you have not received a reply from WC, but not suprising since it highlights another potential non-commercial transaction involving the fund. Have you tried a complaint to the Financial Ombudsman Service - their website is http://www.fos.org.au/centric/home_page.jsp

Perhaps this should also be done by the PIF Action Group as there are other unresolved issues that Breaker is awaiting a satisfactory response.

 

[mellifuous]

Re: Octaviar MFS Premium Income Fund PIF

I don't know if I should feel good or bad about being in the 'same boat' with you guys - seems neither the manager of the FMF or the PIF seem inclined to show transparency and answer reasonable questions.

We've only had Balmain Trilogy for a few months and for nearly the past month they simply refuse to disclose whether or not they are taking 'direct' fees out of the fund.

I get the feeling that the system is dead against investors. We don't seem to have any rights whatsoever, not even to have managers answer reasonable questions, and ASIC seems like a 'pidgeon-hole' to an abyss.

Maybe investors in all of these stuffed-up funds should get together somewhere/somehow and start to get political?

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

I worry about an organisation that engages in too many battles at once - we know what often follows: fatigue and internal bickering.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Trust in managed funds and planners takes hit:::
Source:http://www.moneymanagement.com.au/article/Trust-in-managed-funds-and-planners-takes-hit/498487.aspx ;;
16 September 2009 | by Mike Taylor

The managed funds industry may emerge the biggest loser from the erosion of investor sentiment resulting from the global financial crisis (GFC).

That is the bottom line of new Investment Trends research, which found 54 per cent of active investors agreed with the statement that they no longer trust fund managers and intend investing directly in the future.

Commenting on the research findings, Investment Trends principal Mark Johnston said a similar exercise conducted in November had revealed that the GFC had dented investor confidence, with the latest data suggesting that while investor sentiment towards markets had improved, there was increasing distrust in fund managers.

“The problem is that many investors blame ‘financial services’ companies for creating the global financial crisis, and don’t necessarily distinguish between greedy Wall Street investment bankers and local fund managers,” Johnston said.

The investment trends research also held bad news for superannuation funds, with 19 per cent of respondents suggesting they no longer trusted their superannuation fund.

Johnson said older investors had emerged as being most distrustful of fund managers – something that posed a problem in circumstances where most wealthy investors tended to be older.

Financial planners also have reason to be concerned in circumstances where the research suggests fewer people are using them than a year ago, with a 34 per cent decline having been recorded in the number of people saying financial planners were the main influencers of their investment decisions.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

It would be nice to know where PIF stands in the grand scheme of the 'Raptis Resurrection'. We are owed $20mill as 2nd mortgagee on the Sheraton and $32.6mill on another Raptis project. I don't recall any update on our position from JH, does anyone else know? Seamisty
Raptis resurrection begins
Source::http://www.goldcoast.com.au/article/2009/09/16/137695_gold-coast-news.html







Raptis resurrection begins
Shannon Willoughby | September 16th, 2009

RAPTIS Group is manoeuvring for a comeback almost a year to the day after it collapsed.

This week, the development company's corporate doctors will put forward a plan to quarantine the group's debt to allow shares to resume trading, documents have revealed.

This means Jim Raptis's listed empire, which crumbled under almost $1 billion worth of debt, will once again be free to raise funds on the Australian Securities Exchange to kickstart future developments.

The proposal comes amid rumours Mr Raptis -- who built a large chunk of the high rises at Surfers Paradise and Broadbeach -- is on the prowl for acquisitions.

If the plan goes ahead, this will be the second time the Chevron Renaissance developer has survived financial devastation, having emerged from administration in the early 1990s.

On Friday, administrators Brian Silvia and Andrew Cummins, of BRI Ferrier, will ask creditors, many of whom have suffered their own financial setbacks since the group's implosion last year, to vote on establishing a creditors trust.

Creditors trusts carry the debt of a company, leaving the corporate shell with no liabilities.

Unsecured creditors, mainly tradies and small businesses, are owed almost $30 million.

Already, the company is operating under a deed of company arrangement as its administrators continue to sell assets.

This would end if a trust were established.

The trust will include 35 million preference shares worth 1c each of which will be sold or converted into ordinary shares at a later date.

This will dilute Mr Raptis's 62 per cent holding in the company.

If voters agree to go ahead with the trust which, according to a creditors' report obtained by The Bulletin will deliver a more promising outcome than liquidation, it will see Raptis Group emerge from the financial crisis wounded but not dead, unlike many other Gold Coast development companies.

Just over a year ago, a shortfall in equity led Capital Finance Australia to appoint receivers to Raptis Group's Southport Central Tower 3.

Capital Finance, owed $200 million, appointed KordaMentha to oversee the completion of the third tower and the repayment of the $21 million owed to unsecured creditors.

This triggered a default of all other loans to associated Raptis Group entities and, earlier this year, administrators to the parent group were called in.

The impact on the Gold Coast was widespread.

Work on the proposed Hilton development, which employed thousands of sub-contractors, stalled for months until ANZ appointed Brookfield Multiplex to manage the completion of construction.

Mr Raptis could not be reached for comment yesterday.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Investors caught in big freeze

Florence Chong | September 17, 2009
Article from: The Australian

UP to $14 billion has been trapped in unlisted retail property trusts as their managers, mostly linked to investment banks such as Macquarie Group, Westpac and Deutsche, are expected to keep redemptions frozen and distributions cancelled until at least next year.

Melbourne-based asset consultant Ken Atchison told The Australian that at least 20 managers had closed their funds to redemptions.

They include large and well-known managers such as Deutsche Bank's Dexus Property Group, Centro Properties Group, Macquarie Group, Axa, Westpac, Charter Hall, Blackrock and a host of smaller managers such as Aspen Property group.

Mr Atchison says these managers, who have about $7bn to $8bn of funds under management, could possibly face redemptions in the order of $2bn-$3bn, but it was difficult to estimate.

At least a dozen managers of unlisted trusts have either kicked off or are in the throes of embarking on a capital raising to replenish their cash.

Compared with billion-dollar raisings in the listed sector, unlisted trusts look to raise money in the $10 million to $50m range. The Perth-based Aspen Property Group sought to raise up to $25m for its unlisted Aspen Diversified Fund. "We've raised our minimum of $15m and will keep the issue open until we get the full amount," said Aspen managing director Angelo Del Borrello.

Mr Del Borrello said it would resume redemptions when the capital raising was completed for the $140m trust.

Funds such as Aspen's are grappling with debt repayments at a time when fresh fund inflows have dried up. Unlike listed trusts, which recapitalised in the past 12 months and substantially reduced their debts, unlisted trusts have only recently started to raise capital.

However, those that have ventured into the capital market are finding the going tough. Analysts and industry sources say as asset values fall, these funds risk breaching their loan covenants and many are forced by their lenders to top up their capital. In a recent report, Aegis/PIR noted that the 73 funds that populate the sector own assets valued at about $14bn, but carried a debt of $7.3bn at December 31, 2008.

Dinesh Pillutla, head of property at Aegis/PIR, said pre-crisis unlisted retail trusts held between 5 and 10 per cent of their assets in cash or liquid investment (such as shares) to meet redemption requests.

With retail investors having a significant proportion of funds locked up with unclear exit timeframes, the sector had been under pressure, he said.

Managers had been forced to suspend redemptions into the foreseeable future to deal with the upsurge in investors seeking to redeem units at the same time, he said.

Industry analysts said most funds had been closed since last October.

Mr Pillutla said trusts could open for limited withdrawal only when they had stabilised their balance sheet and were not at risk of breaching debt covenants.

Zenith Investment Partners director David Wright said investors had no option but to participate in capital raisings, otherwise they risked seeing their trust breaching covenants and selling assets at distressed prices.

"Investors are suffering a double whammy. They can't take their money out and they are not getting incomes," Mr Wright said.

Kevin Prosser, head of property at stockbroking and financial research firm Lonsec, said managers who had been able to sell assets to raise the cash were slowly reopening their funds.

APN Property Group chief executive Howard Brenchley said the group sold the Bendigo Bank building in Melbourne's Docklands for $33m to replenish the liquidity of its trusts.

"All our five funds will have a three-week redemption window next month," he said. The APN trusts manage about $1bn of funds.

Mr Howard said unitholders could withdraw a set amount from the funds, closed since last October, but it was a temporary solution.

Managed fund manager Axa's chief investment officer, Mark Dutton, hopes the market will improve sufficiently over the next 12 months to lift the ban on redemptions. Axa manages a billion-dollar unlisted property trust.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

I worry about an organisation that engages in too many battles at once - we know what often follows: fatigue and internal bickering.

Too right.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

It is my understanding OPI owes the PIF money, I wonder if we are a secured creditor? Seamisty OPI Pacific Finance in Receivership:::Source:http://www.stuff.co.nz/business/industries/2874323/OPI-Pacific-Finance-in-receivership
New Zealand’s third largest failed finance company OPI Pacific Finance has been placed into receivership by the trustee for its investors Perpetual Trust bringing down the curtain on its moratorium.

Perpetual Trust has appointed Colin McCloy and Maurice Noone of PricewaterhouseCoopers as receivers.

The moratorium of OPI Pacific looked destine to collapse following the court-ordered liquidation of its Australian parent Octaviar, formerly MFS, in July.

"The decision to appoint receivers follows the Supreme Court of Queensland's order that Octaviar, over which OPI had a put option, be put into liquidation," said Matthew Lancaster, head of corporate trust at Perpetual.

"The trustee's opinion is that a receivership is now appropriate and in the best interests of OPI's investors."

When OPI Pacific Finance, formerly MFS Pacific Finance, hit the wall in March last year the state of its loan book left around $314 million of debenture and capital note investors fearing for their money.

Debenture holders have since received back 22.17c in every dollar they had invested, but the final amount was dependent on the success of a "deed of company arrangement" with the creditors of its debt-ridden parent, the Australian investment company Octaviar, formerly MFS.

But on the last day of July, the Queensland Supreme Court ordered Octaviar into liquidation and set aside the deed, triggering an "event of review" under the moratorium, which allowed Perpetual Trust to call in receivers or liquidators, but only after consulting with OPI's management for at least 10 working days.

The balance owing to OPI's secured debenture holders amounts to approximately $200m and $56.7m to unsecured note holders. Unsecured noteholders have not received any payments.

At the time of its demise, OPI Pacific's collapse ranked behind only Bridgecorp and Hanover in size, owing creditors $456.6m including $313.4m of debenture and noteholders.

When investors were asked to allow OPI Pacific Finance to enter moratorium, and so avoid the receivers and liquidators, the company said just $122.8m of its loans and investments looked collectable.

"In May 2008, OPI received an upfront part payment of A$20m from Octaviar in respect of its put option liability to OPI and this was distributed to secured debenture holders following the approval of the moratorium," said Mr Lancaster.

"The receivers will investigate whether it will be possible to obtain any further payment from Octaviar as well as from other parties."

PwC partner Mr McCloy said he was working with the company and the trustee to review the situation, but it was still to early to offer detailed information.

"However, we will send all investors a report as soon as possible. In the meantime we've set up a dedicated help line and web page to allow investors to ask questions and find out more information."

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Here is the PWC NZ website link to the OPI receivership - http://www.pwc.com/nz/en/opi-pacific-finance/index.jhtml

 

[charles36]

Re: Octaviar MFS Premium Income Fund PIF

Thanks Marcom and Selciper for your enlightening posts. Could you explain what you and Selciper meant in the post 4184. The way I see it, we have been dragged into this financial quagmire and the people responsible hope we will get fatigued and slink away into the sunset. I for one do not have that in mind, I am in for the long haul and I know many others who possess the same tenacity to pursue this unsatisfactory state of affairs to the bitter end. We can be ignored but there will come a time when we will get the answers we seek and hopefully some of our hard earned money back.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

King of cowboys
| September 18th, 2009;;Source;;http://www.goldcoast.com.au/article/2009/09/18/138375_gold-coast-business-bizzy-bits.html

SPOTTED having a drink with the boys in town was former MFS boss Michael King.

The one-time high-flyer, who continues to lie low at his Canungra property Elysian Fields, appeared to be relaxing after a day out on the polo fields of Guanaba.

The polo day last Sunday was part of a Make A Wish Foundation charity event.

Mr King, resplendent in a checked 'cowboy' shirt, was accompanied by fellow riders and vets from the event.

 

[lawry1dog]

Re: Octaviar MFS Premium Income Fund PIF

The only reason I put anything on this forum or read it, is in the hope that WC or someone of power can help our financial situation.

But looks like after all this time, nothing has eventuated. Seems this forum is for letting off steam, so why does it exist at all.
I hoping and will be asking the administrator of this forum to close it down, as I think it has caused much confusion among unit holders.

Why give people false hope or portray doom & gloom.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Fortress full bench appeal decision in Supreme Court this morning.

 

[lawry1dog]

Re: Octaviar MFS Premium Income Fund PIF

Yes, you will all say I am crazy, and why look at this forum at all.

You are right, I think I will give this forum a rest, for my own sanity.

Maybe in the new year, I will check it out again. But of course nothing will
have changed.

I should have never given my money to someone else to manage, as of course
you will never see it again.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

The only reason I put anything on this forum or read it, is in the hope that WC or someone of power can help our financial situation.

But looks like after all this time, nothing has eventuated. Seems this forum is for letting off steam, so why does it exist at all.
I hoping and will be asking the administrator of this forum to close it down, as I think it has caused much confusion among unit holders.

Why give people false hope or portray doom & gloom.

Lawry1dog I hardly think the instigatation by a few PIF investors of one of the biggest Class Actions in Australian corporate history can be seen as nothing eventuating from this forum. Without this forum those people would never have connected and gathered the strength and support it took to get the CA up and running. While you obviously consider that as a non event, I know there are many other investors who are gratefull for the chance to participate in the hope of seeing some sort of return from the outcome. It is also used to post all relevant PIF information so others with less time and computer skills can access the latest PIF related news, court events and outcomes etc. Yes, we do also use it to let of steam and voice our concerns and frustrations as you yourself have done. If you want direct communication to WC use investorrelations@newpif.com.au Regards, Seamisty

 

[Mary Lynch]

Re: Octaviar MFS Premium Income Fund PIF

Hey Lawry1dog....you've only just come aboard compared to many of us; we welcome you of course, as you are a repacement clone of the Great Dame, who is severely ill apparently...and we became very fond of him...in a masochistic way.

This forum was kicking along soon after the **** hit the fan, early 2008. Many of us have been using it as an outlet for our stress and "steam" for yonks, and it has been an absoute godsend to most; No-one else understands the intricate details and the importance of having such a place to come to, to share are anger and information.

I just wish that there was a way that ALL criminal corporate fatcats, greedy assholes that they are, could be forced to PIMP on eachother. The only way to do that would be for them to have to cough up more $$$ (cos that's all they know...loyalty etc doesn't count for anything) if their fellow directors were sidestepping blame, skipping the country, or feigning bankrupsy using family trusts etc. Wouldn't it be good for them to dob eachother in, whilst saving their own skin, meanwhile saving Carneys a lot of hours.

 

[k.smith]

Re: Octaviar MFS Premium Income Fund PIF

Lawry1dog I hardly think the instigatation by a few PIF investors of one of the biggest Class Actions in Australian corporate history can be seen as nothing eventuating from this forum. Without this forum those people would never have connected and gathered the strength and support it took to get the CA up and running. While you obviously consider that as a non event, I know there are many other investors who are gratefull for the chance to participate in the hope of seeing some sort of return from the outcome. It is also used to post all relevant PIF information so others with less time and computer skills can access the latest PIF related news, court events and outcomes etc. Yes, we do also use it to let of steam and voice our concerns and frustrations as you yourself have done. If you want direct communication to WC use investorrelations@newpif.com.au Regards, Seamisty

Lawrydog these sites are also connecting unitholders in other funds that are in these circumstances. Who was it that said knowledge is power? It is only by reading these sites that we collectively have knowledge, the enabler for us to pursue avenues of action, which hardworking members of this forum and other like forums have achieved and are still working at....

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Charles 36,

Hi. It’s not us who will become fatigued or start bickering. Actually, I’m feeling that within a year, a surprising intervention or two will improve our situation (that reads like a horoscope; I know). Realistically, the class action, expertly organised by the AG, should keep our spirits high.

Cheers.