Wellington Capital PIF/Octaviar (MFS) PIF

[k.smith]

Re: Octaviar MFS Premium Income Fund PIF

Where does 28cents come into the equation???

from the NSX site today...

SECURITY TRADING HISTORY - PIN
Full trading history is displayed up to the close of business for the previous business day.



Statistics Summary:
Total Trades: 99
Average Price: $0.13
Total Volume: 2,823,547 securities
Total Value: $357,930.57
Cancelled Trades: 2.


the last trade was on the 29th September for 12cents....
I dont recall any trades for 28cents....and I will be writing to this journalist to ask him why he published what I consider to be a grossly misleading figure.

I wonder if all those hapless investors in mortgage funds that accept this scenario to list their funds ever get to hear a unbiased appraisal of these proposals......seems to be, once again, that investors have no voice anywhere...

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

'I dont recall any trades for 28cents....and I will be writing to this journalist to ask him why he published what I consider to be a grossly misleading figure.' It appears there is no end to people who handle the truth carelessly or simply Steven Pritchard has absolutely NO IDEA of what companies are what that are listed on the NSX already of which he is chairman. Unfortunately I don't have time at the moment to follow up on this but urge others to do so. Cheers, Seamisty

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Like Anthony Klan who in the Australian reported that the first PIF sale was for $35,000. The trade was for $900. Slightly different.

That article remains uncorrected online courtesy of the Australian. Backed by the reputation of the Wall Street Journal (http://www.theaustralian.news.com.au/business/story/0,28124,24537986-643,00.html)

And no correction within cooee of that webpage.

I'm learning GD. Sadly, I'm learning.

Not the first time this Walkely Award journo got things soooooo wrong.

(That link is now http://www.theaustralian.news.com.au/business/story/0,,24537986-36418,00.html and the page still hasn't been supplemented with a correction or a link to a correction.)

Anthony Klan's reporting of our experience on the NSX is in stark contrast to Fairfax's Michael West when on 10 December 2008 he reported under 'Don't Blame the Crisis':

"...Wellington jagged control of a similar sized fund on the promise of distributions, a buy-back of some units at 45 cents, and recovery over time with listing on the NSX at 45 cents per unit.
Since Wellington’s Jenny Hutson won control of the fund it has dropped to trade around 12 cents per unit, no payments, no buy-back, and practically no cash flow.Pensioners are getting out at 12 cents to "bottom feeders" with patient capital".

Then there's Gold Coast Nick Nichols on 15 May 2009:

"In the case of City Pacific, its fund has been revalued down to 61c a unit, while Wellington's First Mortgage Fund is worth about 45c a unit, although investors are unwilling to pay much more than about 12c on the National Stock Exchange."

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

I am not suprised the NSX had a shocking year with incompetant practices of late opening times, multiple recordings of single trades, and totally irresponsible, untrue and misleading media articles!!!!! I wonder if shareholders are happy with 'THEIR NEW BOARD' of directors? Seamisty:::::: Better times to follow shocker, NSX hopes::CITY BEAT: Andrew Main | October 01, 2009
Article from: The Australian

NSX, the National Stock Exchange, had a shocking year. That's not journalistic licence; that's the company's own assessment. "The only word that your new board can use to describe the 2009 consolidated operating loss of $15,247,916 for NSX Limited is, shocking," chairman Steven Pritchard and managing director Paul Seymour state in the opening line of the group's annual report, lodged yesterday.

Pritchard and Seymour are part of the new team installed at the NSX, the former Stock Exchange of Newcastle, in May after a disastrous period that involved a failed alliance with the New Zealand Stock Exchange, which hoped to use the NSX as a beachhead to take on the far bigger ASX in Australia. The annual report shows a five-fold increase in legal expenses to $803,000 in the past year, reflecting the new guard's battle with the old crew, which was forced out in May.

The NSX, an exchange for small to medium companies that is listed on the ASX, is now promising better times ahead for its shareholders, who include Ron Brierley's Guinness Peat Group. Pritchard and Seymour are cutting annual operating costs by $2million and refocusing the company on its core business of running exchanges, including the Bendigo Stock Exchange and markets for water rights and taxi licences. They're also looking at creating more specialised trading boards in areas such as mining, clean technology, debt and even frozen mortgage funds. "The board," they write hopefully, "looks forward to receiving your continued support in the coming year."

 

[k.smith]

Re: Octaviar MFS Premium Income Fund PIF

http://www.theaustralian.news.com.au/business/story/0,28124,26148168-30538,00.html

".....They're also looking at creating more specialised trading boards in areas such as mining, clean technology, debt and even frozen mortgage funds. "The board," they write hopefully, "looks forward to receiving your continued support in the coming year......."

How can Mr. Steven Pritchard use us as an example ..the only example in this article

http://www.theaustralian.news.com.au/story/0,25197,26149214-601,00.html

...and get the facts so wrong? Has he anything to gain...?? An honest mistake..??

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Let's see if JH points out Mr Prtichard's error by way of a public statement.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

http://www.theaustralian.news.com.au/business/story/0,28124,26148168-30538,00.html

".....They're also looking at creating more specialised trading boards in areas such as mining, clean technology, debt and even frozen mortgage funds. "The board," they write hopefully, "looks forward to receiving your continued support in the coming year......."

How can Mr. Steven Pritchard use us as an example ..the only example in this article

http://www.theaustralian.news.com.au/story/0,25197,26149214-601,00.html

...and get the facts so wrong? Has he anything to gain...?? An honest mistake..??

Has he anything to gain you ask k.smith? The NSX listing charges are:: MKT Cap. 2 mil 6 mil 12 mil
Application Fee 5,500 9,900 14,960
CHESS Fee 1,650 1,650 1,650
Total App. 7,150 11,550 16,610
Annual Fee 5,500 6,900 8,432
Annual
CHESS Fee 825 825 825
Total Annual 6,325 7,725 9,257
* Excluding GST.

I guess PIN will get a reduction in fees this year since it is worth less than last year. What a waste of our money!!! Doesn't Mr Pritchard realise that the only PIF investors selling are those that are destitute or dying? The very astute Mr Pritchard obviously used the Trade Statistics from Oct last year because the oh so efficient NSX is so up to date this is the last month of trade history recorded on the PIN company data::17-Oct-2008 10:57:50 AM 0.275 10,000 $2,750.00
I bet other investors of frozen mortgage funds are as highly excited as us at the prospect of a NSX listing!!(NOT) Seamisty

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

If anyone feels inclined to contact Steven Pritchard at the NSX re the BS article http://www.theaustralian.news.com.au/story/0,24897,26149214-601,00.html in the media yesterday here is a contact e mail address:::steven_pritchard@reespritchard.com.au Cheers, Seamisty

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Let's see if JH points out Mr Prtichard's error by way of a public statement.

HAHAHA, surely you jest selciper!!!!! That would be like admitting JH has FAILED by drawing attention to the fact that the NSX is only there (at great expense to the PIF dwindling coffers) to provide liquidity to investors who are destitute or bloody dying!!!!!( She would probablly be 'encouraged' by those positive figures!) Because it sure as hell does has not attracted much in the way of confident new investors who have faith in JH's ability to turn this fund around and provide an income stream as was intended. Investors are prepared to pay 6-12 cents per unit as they obviously think that is all it is worth. Some could even be trading, buying low and re selling a smidge higher. Did anyone contact Mr Pritchard re his grossly misleading article?http://www.theaustralian.news.com.au/story/0,24897,26149214-601,00.html

I have fowarded it to Mr Rippolls office as I think it is appropriate that this type of misleading information needs to be dealt with as part of the Senate Enquiry re 'The Parliamentary Joint Committee on Corporations and Financial Services'. Remains to be seen if the enquiry will be another waste of time or if someone actually has the energy to do something other than blow hot air. Seamisty

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Other fund managers do not seem to like the idea of listing frozen funds according to the AFR:

No sign of thaw for frozen funds

12:00AM | Ben Wilmot and Nick Lenaghan | The Australian Financial Review

Investors stuck in frozen property funds can expect little relief from the prospect of publicly listing their investment vehicles, with managers playing down the idea.

I guess the NSX will have to look for other business to keep the exchange a float.

 

[k.smith]

Re: Octaviar MFS Premium Income Fund PIF

Other fund managers do not seem to like the idea of listing frozen funds according to the AFR:

No sign of thaw for frozen funds

12:00AM | Ben Wilmot and Nick Lenaghan | The Australian Financial Review

Investors stuck in frozen property funds can expect little relief from the prospect of publicly listing their investment vehicles, with managers playing down the idea.

I guess the NSX will have to look for other business to keep the exchange a float.

hmmmmm...

It is the fund managers that DO like the idea of publicly listing their investment vehicles that worry me...
the investors seem (imo) to be the only ones exposed to risk by listing, as we are finding out...

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty - I rather like the following quote by American author, Mason Cooley:

"Magic trick: to make people disappear, ask them to fulfill their promises."

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty - I rather like the following quote by American author, Mason Cooley:

"Magic trick: to make people disappear, ask them to fulfill their promises."

PUFF, and all that was left with a long list of unfilled promises, was an empty red leather jacket!!!!!!!!

On a more serious note, the next court hearing for the Class Action is 9.30 am this Fri, 9th Oct when I believe the Statement of Claim, a rather 'volumous document' will be lodged. Cheers, Seamisty

 

[JohnH]

Re: Octaviar MFS Premium Income Fund PIF

Someone has taken a punt this morning at 17 cents a unit!!! A whole $170 trade!!! Can anyone suggest any logic to this, other than to raise the perceived value of the fund? ........ I wonder why!!

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Someone has taken a punt this morning at 17 cents a unit!!! A whole $170 trade!!! Can anyone suggest any logic to this, other than to raise the perceived value of the fund? ........ I wonder why!!

My sentiments exactly JohnH!!! The egg is only on one side of the face now. (Unlike mine where it is still smeared all over!!!) How much is it for a trade on the NSX? Seamisty

 

[gardie]

Re: Octaviar MFS Premium Income Fund PIF

Why not establish your own RE and run the fund yourselves.

The fund itself could own the RE

It has the required funds to establish required asset backing.

There is ample evidence that Wellington acted in misleading manner in getting changes through so replacement fee could be avoided.

I am sure among investors their would be suitable qualified people to sit on board and required services could be outsourced.

This way costs are kept to a minimum and full transaparency could be achieved.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

MFS bosses, auditor pursued over $420m lossMICHAEL EVANS
October 8, 2009
LAWYERS for investors in the collapsed Gold Coast property company MFS Limited, now called Octaviar, are pressing ahead with a $1 billion class action against former executives including chief executive Michael King and auditor KPMG.

In an amended statement of claim before the matter returns to the Federal Court in Sydney tomorrow, Carneys Lawyers prepared a 560-page document detailing a series of claims against officials of MFS Investment Management, the manager of MFS's main fund that held $1 billion in deposits from more than 10,000 investors.

It includes details of related party transactions and claims that officers failed to exercise care and diligence. Auditor KPMG is accused of failing to carry out compliance audits and to notify suspected breaches of the Corporations Act. There are allegations that Mr King and two fellow company officials were directors of both MFS's management company and another company, McLaughlin Financial Services Limited - the responsible entity of the MFS Diversified Trust - at the time of a series of loans.

''Unauthorised payments by MFS Investment Management'' were made from the fund in related party transactions, it is claimed.

It is also alleged that MFS Investment Management officers made unauthorised investments against the stated investment criteria and the managers' ''wrongful transactions'' led to investors suffering losses of more than $420 million.

The claim says KPMG partner Andrea Waters failed to refer transactions to ASIC despite ''awareness of suspected breaches''
Source:::http://www.smh.com.au/business/mfs-bosses-auditor-pursued-over-420m-loss-20091007-gn5j.html

 

[mgr2118]

Re: Octaviar MFS Premium Income Fund PIF

Story from yesterday's Sydney Morning Herald:-

Only wish that ASIC could be this active in working for our cause !!!


ASIC starts Brighton Hall legal action
October 7, 2009 - 7:34PM

The corporate watchdog has commenced legal action against Brighton Hall Securities Pty Ltd relating to recommendations it made to its clients to invest in collapsed property scheme Westpoint.

The Australian Securities and Investments Commission (ASIC) has filed an application for leave in Perth's Federal Court to start proceedings against the financial services firm, which is in liquidation.

ASIC will seek damages of about $14 million on behalf of several Westpoint investors who were clients of Brighton Hall.

ASIC alleges Brighton Hall was negligent in its investigation of Westpoint products and its subsequent recommendations to its clients to invest in such products.

"Given Brighton Hall's liquidation, it is anticipated that the funds available to satisfy this claim will be limited to any available insurance proceeds," ASIC said in a statement on Wednesday.

About 170 investors could benefit from the action should it prove successful, ASIC said.

The matter will return to the court on November 16.

It is one of 19 civil actions ASIC is taking to recover funds for Westpoint investors.

Westpoint collapsed in February 2006, leaving 4,000 investors out of pocket by a combined $300 million.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Bankrupt King dodges $650m bullet
Nick Nichols, business editor | October 9th, 2009

MFS founder Michael King is said to have declared bankruptcy, taking him out of the firing line for a $650 million lawsuit being brought by investors in the frozen Premium Income Fund.

Sydney legal eagle Arthur Carney, of Carneys Lawyers, said Mr King would not be responding to an amended claim lodged in the Federal Court this week against the former MFS chief executive and company auditors KPMG.

"He has declared himself bankrupt," said Mr Carney of Mr King's position.

But he said the bankruptcy could open the way for Premium Income Fund (PIF) investors to probe further into Mr King's financial affairs.

"We're not looking at that at the moment," said Mr Carney, who is acting on behalf of more than 5000 PIF investors seeking to retrieve their lost savings.

"What we are trying to do is recover money for these people, and the best way to do that is to go for the directors' and officers' liability policy and, of course, KPMG.

"We think we have a really strong case."

The matter is up for mention in the Sydney Federal Court this morning.

The legal action, first launched in April, had alleged that prior to its collapse last year MFS directors had transferred tens of millions of dollars in unsecured loans to various MFS entities, loans which were now worthless.

It also alleged KPMG, and auditor Andrea Waters in particular, 'failed to exercise appropriate professional judgment' in their capacity as auditors of the fund.


The original 71-page document has now blown out to a 560-page amended filing which includes more details of related-party transactions and allegations that MFS officials failed to exercise care and diligence.

KPMG has yet to respond to the claims.

The Premium Income Fund, originally worth $770 million, was valued at just $131 million yesterday. The $1 units last traded at 17c on the National Stock Exchange.

Mr Carney described the litigation, which is targeting KPMG's $1 billion indemnity cover, as 'horribly complicated' that could drag on for years.

He said most investors who poured their retirement savings into PIF were elderly and could not afford a protracted legal stoush.

Mr King's reported bankruptcy, which is yet to show on official records, comes just months after he was said to have reached a two-year repayment agreement with margin lenders who are owed about $127 million.

The loans are supported by now worthless shares in MFS, now named Octaviar which is in liquidation.

When Mr King last spoke to The Gold Coast Bulletin in May last year, he foretold of a near certainty of being declared bankrupt.

"The chances of me not being bankrupt are one in a million," he said at the time.

He could not be contacted for comment yesterday
Source:::Gold Coast Bulletin

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Story from yesterday's Sydney Morning Herald:-

Only wish that ASIC could be this active in working for our cause !!!


ASIC starts Brighton Hall legal action
October 7, 2009 - 7:34PM

The corporate watchdog has commenced legal action against Brighton Hall Securities Pty Ltd relating to recommendations it made to its clients to invest in collapsed property scheme Westpoint. ...

Wish is about all that I can hope for. See http://www.crikey.com.au/2009/09/02/mfs-directors-get-back-on-the-gravy-train/

Then if you want to get an idea of the sort of people ASIC jails see Mayne's list of the mere 347 jailed over the last 18 years at http://www.maynereport.com/articles/2007/07/17-2354-2207.html