Wellington Capital PIF/Octaviar (MFS) PIF

[mellifuous]

Re: Octaviar MFS Premium Income Fund PIF

Don't good “generals” lead from the front?

Generals lead from the front.

Phoney corporate 'generals' lead from within a corporate shell with personal assets safely locked away in trusts or spouses' names.


Looking at your case, I would say you are being 'duped' (no pun intended).

I'd guess you're all just being played along - I think W.C. is playing for time.

I'm guessing there's bad news out there, and W.C. doesn't know how to tell you.

Bad news about tax --- you know, the sort of thing that a lot of you don't want to think about.

IMO.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Generals lead from the front.

Phoney corporate 'generals' lead from within a corporate shell with personal assets safely locked away in trusts or spouses' names.


Looking at your case, I would say you are being 'duped' (no pun intended).

I'd guess you're all just being played along - I think W.C. is playing for time.

I'm guessing there's bad news out there, and W.C. doesn't know how to tell you.

Bad news about tax --- you know, the sort of thing that a lot of you don't want to think about.

IMO.

mellifuous we will deal with tax implications when we know what they are. As has been stated on here previously, different investors will be affected differently and until such times as we actually receive any money from WC this problem can't be adressed. It is also quite obvious JH has delayed our Dec update for a reason and I doubt anyone will be expecting good news on past performance. Seamisty

 

[mellifuous]

Re: Octaviar MFS Premium Income Fund PIF

mellifuous we will deal with tax implications when we know what they are. As has been stated on here previously, different investors will be affected differently and until such times as we actually receive any money from WC this problem can't be adressed. It is also quite obvious JH has delayed our Dec update for a reason and I doubt anyone will be expecting good news on past performance. Seamisty

Seamisty, I didn't make any reference to 'performance'. Yes, different investors will be treated differently, but I would think it must be hard to tell an investor that he/she has to declare part of what is left of one's own investment as assessable income. You must remember the letter posted here, the one from W.C. about how the payment of money was subject to advice - if that is what is holding up payment, then it must be an important issue.

I know of one unit holder in your fund who has written to W.C. to clarify the tax position, and that letter remains unanswered for nearly a month.

If it was a simple matter, the letter could have been answered in a few days.

Investor confidence is important - already there is a lot of discontentment, what would it take to "break the camel's back" ? (so to speak). Investors will only tolerate being mushroomed for a finite period of time.

We all have opinions, that is mine.

 

[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. With what did they pay this with?
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 10c, at this point in time.

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.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

http://www.goldcoast.com.au/article/2010/01/17/179445_gold-coast-business.html

Michael King opens up about MFS
Nick Nichols, business editor | January 17th, 2010

....

Thanks Seamisty.

IMLO What a load of selfish conceited spin. Or perhaps worse, crafted spin to garner sympathy for King's troubles ahead. I'm saddened that Nick Nichols fell for it. Are we living in the 21st century or in the pre-enlightenment millenium when the lives of a footsoldier were inconsequential to the fortunes and day to day minutae of the generals.

"Mr King's diagnosis was a potentially life-threatening blood clot -- a legacy of a life consumed by the unnatural pressure of billion-dollar deals." Rubbish. My 40yo mate had the same thing happen last year. Blood clot in his lungs. He's a chef running a busy kitchen. Two kids. Diagnosis was - genetic disposition. King should have been looking after his health for his dependents (shareholders and investors) or at the least had processes and sccession planning in place to manage the risk. Was it caused by hours worked or too much indulgence King? If King doesn't have a genetic disposition then this incident could provide another example of reckless risk taking by King.

"Details of the incident were never made public, and for good reason." What about continuous disclosure???

"Late in 2007, short sellers were on the scent of unbridled riches, picking the eyes out of a share market that was full of debt-laden balance sheets and drowning in a rising tide of fear. ... A month later, the short selling barbarians were at MFS's gates and the Gold Coast company had little more than a
couple of hours' warning of their arrival." That was your fault King. You promised us a safe investment and then built a risky business model. Short sellers will continue to be supported by economists and Government because they cause price discovery. Corporates like King don't like shorters because then corporates can't get away with overselling themselves. King, you painted a giant target on MFS and then stepped aside for us to take the bullet. They were always going to come for MFS weren't they? You then heaped risk apon risk when you and your similarly, let's say ambitious, fellow board memebers took out margin loans exposing the MFS empire to a sudden flood of shares on the market when you were forced to sell.

"In hindsight, the advice was flawed -- largely due to its unfortunate timing." Or perhaps you didn't tell UBS the full story did you now Mr King. That Fortress had you on the ropes and was pushing hard. What did that email from Fortress say? Something along the lines of: we don't know where they got the $100m from. Perhaps Fortress were all over you and were behind the shorting attack.

"The fact that UBS was willing to support MFS by underwriting the new share issue was swept aside that Friday morning during a disastrous conference call to brokers and investors." Now now Nichols. How can you paint this as support for King. You seem to have forgotten that UBS was already on the hook for $100s of millions. $900m of debt that went with Stella to CVC Asia Pacific wasn't it.

"Mr King, who is a measured orator and is still regarded in the industry as one of Australia's foremost authorities on funds management law," Did he tell you that himself did he Nichols. Perhaps PIF investors might agree he's an authority for managers, but certainly not investors. Conclusion, if King had anything to do with setting up a fund, don't invest because its expertly crafted to protect the manager to the detriment of the investor. Maybe that's why WC were keen to give it a go.

""The people that owe you money don't want to pay you, and the people you owe money to want to be paid yesterday," he said." WHAT!!!!!!!!!!!!!! Were you running a finance company or a pub. That's the sort of spin you hear from your local builder. Managing this issue is exactly what makes a finance company a finance company isn't it? I'm very sure it is. OMG!!!!! Who put this guy behind the wheel? Where was the Chairman!!!!! Perhaps MFS success had a lot more to do with the quality of the guidence from the previous Chairman. Peacock's predecessor. Perhaps King's first mistake was as early as May 07 when he let Fortress tie a noose around MFS's neck.

"Mr Green this week played down his role in the demise of MFS.
"I don't think it had anything to do with the conference call, but everything to do with MFS overpaying for assets," he said." Could that guy have put it an clearer and more succinct for you Nichols. But no. You went on to conclude: "The body count across the Australian Stock Exchange in 2008 - including the likes of Allco Finance and ABC Learning Centres - made it clear we were all in exceptional times." Yeah, the exceptional times that allowed the debt laden business model to flourish in the first place. No relief for King in Nichols last statement, King precipitated it and heaped it on us.

Perhaps the press is falling for King's 'charm' like his Canungra locals have. Who charms the piper, chooses the tune.

 

[simgrund]

Re: Octaviar MFS Premium Income Fund PIF

Thanks Seamisty.

,,,,,,,,,,,,,,,I'm saddened that Nick Nichols fell for it........

Exactly. Not sparing his time on this diatribe, but stingying to respond to my letter asking for a shred of sympathy from the Press for shareholders; the only wronged party.
Keep hammering.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Something is not right here!!! Anything to do with http://www.elysianfields.com.au/ is not loading on my computer, it is like all prior website links/communication to Elysium fields has been removed. Add to this the adjoining property to Elysium Fields has been sold to an undisclosed buyer, M king has come out of hibernation, seeking sympathy and excusing/justifying our current predicament by blaming everyone but himself !! I smell something really bad here. Jenny Hutson our intrepid saviour is appearing as sour and as usefull as the unwanted grapes that have been ploughed in at Clovelly Wine estate to put cows to pasture and is still missing in action!! What is going on? Mushroom season is over, we are watching every move remotely associated with our fund. Seamisty

 

[charles36]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty, if you were Mr. King and made a press release you would remove your website and email address forthwith. All the sympathy calls would be too much for him to handle. Perhaps you might feel it in your heart to take up a collection for the poor and distressed Mr. King. Perhaps JH might be able to help him out, she knows how to organise. What further bad news awaits us?

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Business Gold Coast

http://www.goldcoast.com.au/article/2010/01/19/179825_gold-coast-business.html





Anger at Wellington over PIF
Nick Nichols, business editor | January 19th, 2010

WELLINGTON Capital has denied it is running behind schedule with its latest update to investors of the Premium Income Fund.

A spokesperson for the Brisbane-based funds manager said the latest report was due at the end of January, in line with the target of updating investors every four months.

The release of the report was 'imminent', said the spokesperson.

A PIF investor who contacted The Gold Coast Bulletin said that unitholders were 'becoming increasingly frustrated' with Wellington Capital and its chairwoman Jenny Hutson.

"Lack of information and transparency as well as lack of performance is creating intense anger, frustration and in some cases, ill health," said the unitholder who declined to be named.

Investors are still waiting on the first of a promised partial capital repayment from the fund, which has been frozen for the past two years since the collapse of Gold Coast funds manager Octaviar, formerly known as MFS.

The first of a series of quarterly capital repayment was expected in December 2008, as proposed by Ms Hutson before she took control of the fund three months earlier.

The $1 units in the fund now have a net asset backing of 44c.

They last traded on the National Stock Exchange at 10c.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

More BS from Wellington Capital!!!! It clearly states at the end of page three on the August 2009 PIF investor update " The next investor update id due to be released at the end of Dec"!!!http://www.newpif.com.au/investor_updates/InvestorUpdate_310809.pdf
The August update was posted on the NSX 1st Sept 2009. Today is the 19th January 2010. The four monthly update is now looking more like a five monthly update. How does that equate to updating investors every four months as stated?????? And WC have the hide to deny they are running behind schedule??? That statement is irresponsible and totally untrue. Anger and frustration is a putting it politely. Seamisty

 

[JohnH]

Re: Octaviar MFS Premium Income Fund PIF

Business Gold Coast

http://www.goldcoast.com.au/article/2010/01/19/179825_gold-coast-business.html





Anger at Wellington over PIF
Nick Nichols, business editor | January 19th, 2010

WELLINGTON Capital has denied it is running behind schedule with its latest update to investors of the Premium Income Fund.

A spokesperson for the Brisbane-based funds manager said the latest report was due at the end of January, in line with the target of updating investors every four months.
The release of the report was 'imminent', said the spokesperson.

A PIF investor who contacted The Gold Coast Bulletin said that unitholders were 'becoming increasingly frustrated' with Wellington Capital and its chairwoman Jenny Hutson.

"Lack of information and transparency as well as lack of performance is creating intense anger, frustration and in some cases, ill health," said the unitholder who declined to be named.

Investors are still waiting on the first of a promised partial capital repayment from the fund, which has been frozen for the past two years since the collapse of Gold Coast funds manager Octaviar, formerly known as MFS.

The first of a series of quarterly capital repayment was expected in December 2008, as proposed by Ms Hutson before she took control of the fund three months earlier.

The $1 units in the fund now have a net asset backing of 44c.

They last traded on the National Stock Exchange at 10c.

Seamisty, As we all know, the last update 31st of August was released on the 1st of September, so if it is the end of this month that's 5 months!!!! - I thought people who managed funds were supposed to be good at figures!!!
..............but the thing that really pi**es me off is the shear arrogance of the Company!!! I just cannot believe the cavalier attitude from somebody WHO IS EMPLOYED BY US :disgust: ...John H

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Business Gold Coast

http://www.goldcoast.com.au/article/2010/01/19/179825_gold-coast-business.html

Anger at Wellington over PIF
Nick Nichols, business editor | January 19th, 2010

...

The $1 units in the fund now have a net asset backing of 44c.

They last traded on the National Stock Exchange at 10c.

Press is wrong again. Net asset backing is 39.2c.

At least Nick Nichols got the last trade price correct. Not like Anothony Klan over at the Australian.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Application to the Brisbane Supreme Court today:

OPI PACIFIC FINANCE LIMITED -V- REEF COVE RESORT LIMITED & others 10:00 AM

Also in today's District Court Criminal Sittings:

KING to be heard by Chief Judge Court 7 Floor 1 9:30 AM
(Mention - Appearance and Legal Representatives Required) One day our boy will get a listing just like this LOL.

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Good to see that Mike Nichols is starting to follow the scent. No doubt Melbourne and Sydney finance journalists will become interested again in our fate. The OCV liquidators' public hearings in April might be a trigger for more coverage.

As for the Wellington spokesperson, I can hardly take anymore obfuscation from this group.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Occasionally I doubted my view on all things financial. Well that won't happen so much any more. Not after after reading:

"The Crisis and the Australian Financial Sector" Evan Jones

http://www.jape.org/component/option,com_remository/Itemid,26/func,showdown/id,129/

The one paragraph that refers to us is on page 9.

A selection of my favourite bits;
Page 12 :

"A hardline view of economic crisis is that it desirably ‘cleans out’ the system, with the inefficient falling by the wayside. Rather, crises generally eradicate the less powerful rather than the less efficient."

Page 19:
"Everything about the Storm model oozes fraudulence. The ASIC submission to the Parliamentary Storm inquiry simultaneously denies regulatory failure, insists that ASIC has been vigilant, yet claims that it has been dramatically restricted by an inadequate legislative brief."

Page 23:
"The new dominance of the big four banks as allfinanz conglomerates has been legitimised in the political and regulatory arenas. The banks’ leverage to extract booty from their customers has been enhanced. The dimensions of their operations that embody recklessness, incompetence and unconscionability will go unchecked. At the other end of the spectrum, the bottom feeders will continue to spawn and wreak havoc on the gullible. Every reform proposal has been opposed by the vested interests, with proposals delayed, compromised or abandoned."

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Latest trade on PIF on NSX:

21-Jan-2010 12:04:58 PM 0.090 32,743

Now there's a vote of no confidence in WC!!!!!! Makes the claim of 14c on liquidation look like a positive outcome!!!!

 

[glendaw101]

Re: Octaviar MFS Premium Income Fund PIF

Latest trade on PIF on NSX:

21-Jan-2010 12:04:58 PM 0.090 32,743

Now there's a vote of no confidence in WC!!!!!! Makes the claim of 14c on liquidation look like a positive outcome!!!!

Make that 185,390 units traded(originally dollars!) traded today ranging from 11c down to 9c.
Somebody knows more than us what is probably more bad news in the LATEst report.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

From Illawarra Mercury. 9 January 2010

"Special Sales of 2009

...

6. Fire sale in paradise

A fire sale of apartments within the stalled Ocean View City Beach project in Harbour St in October sparked a buyer frenzy.

In just four days more than $28 million worth of property was snapped up with 47 of the 67 discounted apartments selling, including the building's five penthouse apartments which were priced from $981,000.

The top price achieved was $1.05 million. A week later all but a handful of apartments had been sold.

The units are being sold by a number of agents as "a 14-day pre-completion clearance" on the basis of a "buy now and settle in March 2010" when the project is expected to be completed.

A number of agents were appointed to sell the units including Simon Kersten of Colliers International and Michael Sullivan from CB Richard Ellis.

Mr Kersten described the response as "staggering" but said the units were sold at well below market value.

Mr Sullivan said two-bedroom units that had previously sold off the plan for above $700,000 before developer Jempac's collapse were sold in the low $500,000s.

In November the project changed hands with Premium Income Fund, the financial backers of the project, to receive $38 million from the new owner Harbour Street Developments.

Harbour Street Developments is controlled by Queensland developer George Callianiotis, with the backing of Rockhampton retailer Solly Stanton. ..."

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

The share price is warning us of another potentially miserable year with WC. Having read the GGB article on 19 January, I expected to find the overdue December update appearing by today. After all, the WC spokesperson reportedly said that the update’s release was “imminent.” In case WC don’t know ii, the dictionary definition of “imminent” is: “close in time; about to occur.” Calendars and dictionaries seem to mean nothing in this case.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

What totally frustrates me with WC, apart from WC not honouring their promises and delivering on Jenny Hutsons commitment to investors among other issues, is what explanation we can expect on the PIF asset Wollongong Hotel deal? In our PIF 11 Dec 2008 update it clearly states that this particular property was in default, or due to mature 19/03/2007 owing us the investors, $57,9932,841 (yes, thats pretty close to $58 million) PLUS INTEREST and yet our RE in their wisdom accepted a $38 million price tag nearly three years later, if and when received on one of our major assets that could have been value addded to get some of that GROWTH POTENTIAL mentioned in the strategic plan to take the PIF foward and rebuild our unit price while making quarterly distributions along the way. (and quote' and Ms Hutson has vowed she will return full value to unit-holders over the next three to five years.')

Meanwhile, PIF investors have not been updated on the two Jim Raptis loans,

quote Jenny Hutson 'I think we're well secured and I think Jim (Raptis) is a great man," said MS Hutson at yesterdays PIF meeting at Broadbeach. "I am a huge Raptis supporter. 'We're going to work with Jim on the three projects we are financing. '

Are you still working with your good mate Jim, Jenny? I am sure the owners of the Premium Income Fund, yes thats us, the unit holders, who are not as tolerant these days and are still waiting to be advised of our losses incurred from those loans as well.

What happened to our 'imminent' PIF Dec 2009 quarterly investor upadate?
Why are PIF investors having to wait nearly 5 months to be informed of the current PIF situation??

I am sure not one single person who overwhelmingly offered you support initially and voted for you can honestly say they are happy with your performance. Is it any wonder investor sentiment is turning against you? (oops, sorry, just venting, I forgot WC and JH do not monitor this thread anymore!!) Seamisty