Wellington Capital PIF/Octaviar (MFS) PIF
- Thread starter breaker1
- Start date
Hi All,
Like others, I have been following this thread for some time to get some idea
of what is happening to my PIF investments. Had a phone call some time back from the Action Group re. an upcoming meeting with the aim of voting WC out and appointing another RE, but have heard no more.
I am not across the fine detail of what has been going on, but for what it is worth, here are are few thoughts.
1. WC has a very bad smell about it and I would be happy to see them go, BUT,
2. I would be wary of the 'out of the frying pan into the fire' scenario.
As I understand it the proposed RE is a receiver.. Having just endured a lengthy and painful operation on my wallet by Ferrier Hodgson, I don't want to go there again. Remember, even WC sounded OK at the time, but look at it now. That said, I would support any action that can be shown to improve our lot.
The recent share shuffle is clearly outrageous even if not illegal. The smell is getting to the level where ASIC should not be allowed to ignore it. They will though unless as a group we can raise the public profile of what is going on. Nothing like publicity to get people moving. Any suggestions?
Like others, I have been following this thread for some time to get some idea
of what is happening to my PIF investments. Had a phone call some time back from the Action Group re. an upcoming meeting with the aim of voting WC out and appointing another RE, but have heard no more.
I am not across the fine detail of what has been going on, but for what it is worth, here are are few thoughts.
1. WC has a very bad smell about it and I would be happy to see them go, BUT,
2. I would be wary of the 'out of the frying pan into the fire' scenario.
As I understand it the proposed RE is a receiver.. Having just endured a lengthy and painful operation on my wallet by Ferrier Hodgson, I don't want to go there again. Remember, even WC sounded OK at the time, but look at it now. That said, I would support any action that can be shown to improve our lot.
The recent share shuffle is clearly outrageous even if not illegal. The smell is getting to the level where ASIC should not be allowed to ignore it. They will though unless as a group we can raise the public profile of what is going on. Nothing like publicity to get people moving. Any suggestions?
Welcome to the forum bespoke.I would just like to clarify that the propsed RE, Castlereagh Capital is a subsiduary Fund Management company of BRI FERRIER, NOT Ferrier Hodgson. Seamisty
A bit of trivia: PIF saw 24 announcements from Wellington Capital from Jan1 2010 until Dec31 2010, 5 of which were 100% 'REJECT' ALF PIF offer related.
Jan1 2011 until 18 May 2011, 25 announcements, with no 'REJECTS' amongst them!!! See WC, you could do it all the time, keep us better informed that is!! Simply AMAZING!! Unfortunately Wellington Capital has become so transparent of late, we can see right through them. Seamisty
Jan1 2011 until 18 May 2011, 25 announcements, with no 'REJECTS' amongst them!!! See WC, you could do it all the time, keep us better informed that is!! Simply AMAZING!! Unfortunately Wellington Capital has become so transparent of late, we can see right through them. Seamisty
.
Unfortunately Selciper , the only way that this cynical pillage of our assets can be redressed is by legal action , possibly by our prospective Fund Manager
You would have more chance of getting assistance from a Neanderthal
with a dual frontal lobotomy than receiving any help from ASIC.
I can assure this observation is made from previous bitter and unpleasant experience.
Unfortunately Selciper , the only way that this cynical pillage of our assets can be redressed is by legal action , possibly by our prospective Fund Manager
You would have more chance of getting assistance from a Neanderthal
with a dual frontal lobotomy than receiving any help from ASIC.
I can assure this observation is made from previous bitter and unpleasant experience.
It certainly is looking like we need outside help as the public servants - supposedly charged with protecting us - cannot raise their heads from that fluffy ASIC pillow.
Investor revolt threatens 30 fund managers
Wednesday, 18 May 2011 12:25pm
By Alison Bevege
An action group of disgruntled investors are trying to sack the 30-member management team of Wellington Premium Income Fund.
The unit-holder action group says it represents 27 per cent of the investors in PIF and has taken steps to convene a meeting to replace existing managers Wellington Capital Limited.
The angry investors have asked Castlereagh Capital Limited, a subsidiary of insolvency specialist firm BRI Ferrier, to take control of the Wellington Premium Income Fund (PIF), and eject Wellington Capital Limited as managers of the fund.
Castlereagh today confirmed that they would be happy to take on the project and said they had the expertise to provide a better outcome
Full article http://www.financialstandard.com.au/news/view/8447668/
Wednesday, 18 May 2011 12:25pm
By Alison Bevege
An action group of disgruntled investors are trying to sack the 30-member management team of Wellington Premium Income Fund.
The unit-holder action group says it represents 27 per cent of the investors in PIF and has taken steps to convene a meeting to replace existing managers Wellington Capital Limited.
The angry investors have asked Castlereagh Capital Limited, a subsidiary of insolvency specialist firm BRI Ferrier, to take control of the Wellington Premium Income Fund (PIF), and eject Wellington Capital Limited as managers of the fund.
Castlereagh today confirmed that they would be happy to take on the project and said they had the expertise to provide a better outcome
Full article http://www.financialstandard.com.au/news/view/8447668/
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IMPORTANT UPDATE
EGM CALL
An Extraordinary General Meeting (EGM) of all Premium Income Fund (PIF) investors is being called by the PIF Action Group on:
Time: 11.00 am (Eastern Standard Time) sign in commences at 10.00 am (arrive preferably at 10.00am)
Date: 16 June 2011
Place: SMC Conference and Function Centre, 66 Goulburn Street, Sydney, NSW ( Map: http://www.whereis.com/ )
WHY CALL AN EGM - LATEST WELLINGTON BEHAVIOUR
On 6 May 2011, Wellington Capital Limited (Wellington) the responsible entity (RE) of the Premium Income Fund ARSN 090 687 577; NSX Code 'PIN' (the Fund) announced a placement of 113 million units at 10 cents to raise $11.3 million equal to 14.97% of units currently on issue. The Fund has approximately 10,500 investors located throughout Australia. In our view, in completing this raising Wellington is no longer acting in the best interests of all Unitholders.
We are concerned that:
* this behaviour by Wellington will have the effect of diluting the current value of investor units in the Fund even further.
* recent changes to the constitution, have removed the protection Members had against the sale of more units in the Fund at less than the reported value of the Fund’s net assets;
* Wellington propose to issue units at a discount of over 70% to reported net asset value
* it willl inevitably involve otherwise unnecessary costs of fundraising payable such as underwriting and legal fees
* Wellington does not now need to offer units pro rata to current Members, and has indicated nothing to them regarding the preservation of the extent of their collective current ownership of the Fund .
WHY CALL EGM - THE OBVIOUS
In the opinion of many of your fellow PIF Action Group members contacted and that of the PIF AG executive, Wellington Capital is considered NOT to be performing anywhere near as well as expected and promised. Over the last three years of Wellington management the fund continues to lose money and go backwards as follows:
* Losses of approx $34M 2009, $40M 2010 and $4M half year to Dec 2010 (not including April 1c payment)
* Unit value down to from 45c to 33c in the $1 - a 25% loss since Wellington Capital took over the Fund
* No 3c payment as promised by Dec 2008 - only a paltry 1c paid Oct 2010 and then April 2011 and two years too late
* No quarterly distributions
* Buyback Scheme of up to 37.75 million investor units at 45 cents per unit to occur by 18 September 2009 did not happen
* Continued write downs of our PIF assets
* Wellington appears to now be mortgagee in possession of most properties or having appointed Receivers & Managers, which indicates most properties are in loan default
Lack of transparency (IAC vote count not given, $5M loan provider at 25% interest, legal actions against fund, etc)
* NSX listing currently trading at around 8.8c poor value - indicating a trader perception of PIF fund value of only $66M
* It appears that Wellington is liquidating the funds physical assets with little sign of the targeted restoration of fund in 3 to 5 years
In short, serious declining asset value with only 2% of our own money returned to investors over the entire time of Wellington management to date, when upward movement was expected. Simply put, we are not satisfied with Wellington's management. Nobody can accuse our Action Group of not giving Wellington a fair go. We feel they have had more than a fair go!
Our investments in the PIF must not be allowed to continue in it's documented downward spiral, accordingly, we are calling an EGM in an attempt to remove Wellington Capital as RE and replace them with a genuine alternative RE manager provided by the PIF AG
CASTLEREAGH CAPITAL LIMITED "THE GENUINE ALTERNATIVE FOUND"
Over a period of time your AG Senior Executives have liaised with the management of an Australia wide company called BRI Ferrier Limited, with conferences, meetings, teleconference hook ups, phone calls, emails, power point presentations, etc. In addition AG executives and Castlereagh management met with or communicated with, our class action lawyer and barrister, substantial PIF unitholders (AG and non AG), IMF Aust., ASIC (within their advisory role), professional observers, etc. Most meetings were conducted at BRI Ferrier's Sydney office.
We feel that BRI Ferrier is a well-known, established, company that has been around for a long time and know what they are doing. We have got to know them and the way they do business and we feel comfortable with them. We observed them to be professional, successful, ethical and loyal.
BRI Ferrier have a subsidiary fund management service called, Castlereagh Capital Limited, named after their address based at 1 Castlereagh Street Sydney. Castlereagh Capital Limited is a licensed Fund Manager, Responsible Entity (RE), ACN 140 979 273.
Castlereagh Capital senior Executives and Board Members have significant experience in operating distressed and non-distressed mortgage and property portfolios. Castlereagh's parent, BRI Ferrier, has more than 125 employees Australia wide with over 40 years experience and offices located in Sydney, Adelaide, Perth, Brisbane and North Queensland.
In addition to Castlereagh's Fund's Management service, BRI's services also include:
Business reconstruction
Bankruptcy
Forensic accounting
Corporate insolvency
Property insolvency
and Castlereagh Capital has access to the same assets, wisdom, experience, knowledge, valuable business contacts and services spread out across the country where our PIF assets are located
Your AG Executives are concerned that after continual PIF losses and write downs, that assets in the fund are in a distressed state and that Castlereagh Capital being specialised in this area are better equipped to deal with this serious concern
Castlereagh Capital Web Site: http://www.cascap.com.au/
(Castlereagh Parent) BRI Ferrier Web Site: http://www.briferrier.com.au/pages/welcome.php
DO WE HAVE THE EGM NUMBERS
Corporate law requires that holding an EGM requires 5% or more of the entire units of the fund. This would require the AG to have the support of at least 38 million units from PIF investors and the requirement of those unit to have returned their written "Authorizations for EGM Power of Attorney" back to us
It is greatly satisfying to advise members that your AG have achieved more than double the amount required above. A huge thank you and deep appreciation to all those PIF investors that we approached and who then gave their enthusiastic support with their signed, returned, written Authorisation for EGM
CASTLEREAGH MEMORANDUM IN MAIL THE GENUINE MAIL KIT
Castlereagh Capital have sent an Explanatory Memorandum [EM] kit, which is now in the mail going out to all 10,700 PIF investors. We do not wish to replicate the Castlereagh Explanatory Memorandum package in this update, so we ask members to carefully read it when it arrives in the mail to you.
We strongly recommend you to vote "FOR" all the seven resolutions proposed in the Explanatory Memorandum after receiving and reading the document.
Over the next week please look out for the Castlereagh Memorandum Kit to come in the mail. The first item you should see when you open the Castlereagh Memorandum is a cover letter from the PIF AG. Some investors have been receiving letters from ALF PIF so please do not confuse it with this genuine Castlereagh Kit .
There have been some scurrilous comments in the media that our PIF AG or Castlereagh may be aligned with ALF PIF. We state that both the PIF AG and Castlereagh have NO association with ALF PIF and any assertion that the groups are working together are completely FALSE.
EGM CALL
An Extraordinary General Meeting (EGM) of all Premium Income Fund (PIF) investors is being called by the PIF Action Group on:
Time: 11.00 am (Eastern Standard Time) sign in commences at 10.00 am (arrive preferably at 10.00am)
Date: 16 June 2011
Place: SMC Conference and Function Centre, 66 Goulburn Street, Sydney, NSW ( Map: http://www.whereis.com/ )
WHY CALL AN EGM - LATEST WELLINGTON BEHAVIOUR
On 6 May 2011, Wellington Capital Limited (Wellington) the responsible entity (RE) of the Premium Income Fund ARSN 090 687 577; NSX Code 'PIN' (the Fund) announced a placement of 113 million units at 10 cents to raise $11.3 million equal to 14.97% of units currently on issue. The Fund has approximately 10,500 investors located throughout Australia. In our view, in completing this raising Wellington is no longer acting in the best interests of all Unitholders.
We are concerned that:
* this behaviour by Wellington will have the effect of diluting the current value of investor units in the Fund even further.
* recent changes to the constitution, have removed the protection Members had against the sale of more units in the Fund at less than the reported value of the Fund’s net assets;
* Wellington propose to issue units at a discount of over 70% to reported net asset value
* it willl inevitably involve otherwise unnecessary costs of fundraising payable such as underwriting and legal fees
* Wellington does not now need to offer units pro rata to current Members, and has indicated nothing to them regarding the preservation of the extent of their collective current ownership of the Fund .
WHY CALL EGM - THE OBVIOUS
In the opinion of many of your fellow PIF Action Group members contacted and that of the PIF AG executive, Wellington Capital is considered NOT to be performing anywhere near as well as expected and promised. Over the last three years of Wellington management the fund continues to lose money and go backwards as follows:
* Losses of approx $34M 2009, $40M 2010 and $4M half year to Dec 2010 (not including April 1c payment)
* Unit value down to from 45c to 33c in the $1 - a 25% loss since Wellington Capital took over the Fund
* No 3c payment as promised by Dec 2008 - only a paltry 1c paid Oct 2010 and then April 2011 and two years too late
* No quarterly distributions
* Buyback Scheme of up to 37.75 million investor units at 45 cents per unit to occur by 18 September 2009 did not happen
* Continued write downs of our PIF assets
* Wellington appears to now be mortgagee in possession of most properties or having appointed Receivers & Managers, which indicates most properties are in loan default
Lack of transparency (IAC vote count not given, $5M loan provider at 25% interest, legal actions against fund, etc)
* NSX listing currently trading at around 8.8c poor value - indicating a trader perception of PIF fund value of only $66M
* It appears that Wellington is liquidating the funds physical assets with little sign of the targeted restoration of fund in 3 to 5 years
In short, serious declining asset value with only 2% of our own money returned to investors over the entire time of Wellington management to date, when upward movement was expected. Simply put, we are not satisfied with Wellington's management. Nobody can accuse our Action Group of not giving Wellington a fair go. We feel they have had more than a fair go!
Our investments in the PIF must not be allowed to continue in it's documented downward spiral, accordingly, we are calling an EGM in an attempt to remove Wellington Capital as RE and replace them with a genuine alternative RE manager provided by the PIF AG
CASTLEREAGH CAPITAL LIMITED "THE GENUINE ALTERNATIVE FOUND"
Over a period of time your AG Senior Executives have liaised with the management of an Australia wide company called BRI Ferrier Limited, with conferences, meetings, teleconference hook ups, phone calls, emails, power point presentations, etc. In addition AG executives and Castlereagh management met with or communicated with, our class action lawyer and barrister, substantial PIF unitholders (AG and non AG), IMF Aust., ASIC (within their advisory role), professional observers, etc. Most meetings were conducted at BRI Ferrier's Sydney office.
We feel that BRI Ferrier is a well-known, established, company that has been around for a long time and know what they are doing. We have got to know them and the way they do business and we feel comfortable with them. We observed them to be professional, successful, ethical and loyal.
BRI Ferrier have a subsidiary fund management service called, Castlereagh Capital Limited, named after their address based at 1 Castlereagh Street Sydney. Castlereagh Capital Limited is a licensed Fund Manager, Responsible Entity (RE), ACN 140 979 273.
Castlereagh Capital senior Executives and Board Members have significant experience in operating distressed and non-distressed mortgage and property portfolios. Castlereagh's parent, BRI Ferrier, has more than 125 employees Australia wide with over 40 years experience and offices located in Sydney, Adelaide, Perth, Brisbane and North Queensland.
In addition to Castlereagh's Fund's Management service, BRI's services also include:
Business reconstruction
Bankruptcy
Forensic accounting
Corporate insolvency
Property insolvency
and Castlereagh Capital has access to the same assets, wisdom, experience, knowledge, valuable business contacts and services spread out across the country where our PIF assets are located
Your AG Executives are concerned that after continual PIF losses and write downs, that assets in the fund are in a distressed state and that Castlereagh Capital being specialised in this area are better equipped to deal with this serious concern
Castlereagh Capital Web Site: http://www.cascap.com.au/
(Castlereagh Parent) BRI Ferrier Web Site: http://www.briferrier.com.au/pages/welcome.php
DO WE HAVE THE EGM NUMBERS
Corporate law requires that holding an EGM requires 5% or more of the entire units of the fund. This would require the AG to have the support of at least 38 million units from PIF investors and the requirement of those unit to have returned their written "Authorizations for EGM Power of Attorney" back to us
It is greatly satisfying to advise members that your AG have achieved more than double the amount required above. A huge thank you and deep appreciation to all those PIF investors that we approached and who then gave their enthusiastic support with their signed, returned, written Authorisation for EGM
CASTLEREAGH MEMORANDUM IN MAIL THE GENUINE MAIL KIT
Castlereagh Capital have sent an Explanatory Memorandum [EM] kit, which is now in the mail going out to all 10,700 PIF investors. We do not wish to replicate the Castlereagh Explanatory Memorandum package in this update, so we ask members to carefully read it when it arrives in the mail to you.
We strongly recommend you to vote "FOR" all the seven resolutions proposed in the Explanatory Memorandum after receiving and reading the document.
Over the next week please look out for the Castlereagh Memorandum Kit to come in the mail. The first item you should see when you open the Castlereagh Memorandum is a cover letter from the PIF AG. Some investors have been receiving letters from ALF PIF so please do not confuse it with this genuine Castlereagh Kit .
There have been some scurrilous comments in the media that our PIF AG or Castlereagh may be aligned with ALF PIF. We state that both the PIF AG and Castlereagh have NO association with ALF PIF and any assertion that the groups are working together are completely FALSE.
To date I have had no written notification or confirmation from Wellington capital in regards to the splurge of changes and activity.
I haven't been informed of the changes to the amendment or the re-issuance of units
I'm wondering how the Jenny Hutson is going to word her latest spiel
" I'm pleased to announce that wellington capital have sneakily amended the consititution and created 113 million discounted extra units at one tenth the original price to unknown persons who are favourable to wellingtons working. Oh it also further dilutes your investment. Your welcome!
Surely they cant be allowed to get away with not notifying us and hacking into a fund to the detriment of us "long suffering investors" as we are now comically known as.
does anyone know if they Legally have any rights?
I haven't been informed of the changes to the amendment or the re-issuance of units
I'm wondering how the Jenny Hutson is going to word her latest spiel
" I'm pleased to announce that wellington capital have sneakily amended the consititution and created 113 million discounted extra units at one tenth the original price to unknown persons who are favourable to wellingtons working. Oh it also further dilutes your investment. Your welcome!
Surely they cant be allowed to get away with not notifying us and hacking into a fund to the detriment of us "long suffering investors" as we are now comically known as.
does anyone know if they Legally have any rights?
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YEEHAAA Breaker!! I am sure many PIF much diluted and further depleted unit holders will be 'delighted' and 'encouraged' to know that the culmination of so much research and hard work over a long period of time will give them a choice of what many consider a better alternative, something which were not been offered apart from liquidation if we did not vote for Wellington Capital as RE when MFS/Octaviar collapsed. I have spoken to so many who are just so disgusted with the latest Wellington Capital self preserving antics they just want to sign on the dotted line and be rid of them!!!! Let the race begin!!! Seamisty
HI ALL LET IT BEGIN NOR
Good onyas ... I hope the $5m wasn't entrenched in the constitution & you're all able to effect a change in management for the better. If the manager is changed, then I hope your new manager looks closely at getting the latest constitutional amendment set aside etc. etc.
ONYA!!! Breaker and Co.
100% behind you. Bring it on. Let the games begin!
Am doing a bit of a ring around to other shareholders in Brisbane to help keep the momentum and the energy of this push to the max.
A big thankyou to all. I'm so excited! Bumblebee.
100% behind you. Bring it on. Let the games begin!
Am doing a bit of a ring around to other shareholders in Brisbane to help keep the momentum and the energy of this push to the max.
A big thankyou to all. I'm so excited! Bumblebee.
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In relation to my post 7149, page 358, above, entitled:
IMPORTANT UPDATE
EGM CALL
I make the following obligatory disclaimer and cover note - please read:
Disclaimer
While the PIF Action Group Inc (PIFAG) has endeavoured to provide a full explanation regarding the motions, it has had to rely on publicly available information concerning the affairs of the Premium Income Fund and its existing Responsible Entity, Wellington Capital Limited (Wellington).
None of the requisitioning members, PIFAG or Castlereagh Capital Limited (Castlereagh), the nominated replacement Responsible Entity, warrants or guarantees the accuracy or completeness of the information contained in this AG Update and to the extent permitted by law disclaims any liability for any loss, however arising, from reliance on it.
To assist you in assessing the Motions, PIFAG and Castlereagh, through the Requisitioning Members, may ask the Responsible Entity to provide members with more information which may be relevant to the Motions before the Meeting. Further information will be made available to members at the following website: http://www.cascap.com.au/ Should more information be provided to you, please read it carefully together with the Memorandum Information Booklet.
Cover note
PIF AG Executives are not licensed financial advisors, lawyers or investment advisors. We are fellow PIF investors like yourself, who want to make a change for what we believe will be in our best interests. Any comments made by us are simply our personal opinions. This AG Update, in some parts, contains simply our interpretation of the actual Explanatory Memorandum Package coming to you in the mail. Our interpretation could be wrong. Please carefully read the Memorandum and form your own interpretation and understanding for any decisions regarding your PIF investment. If you are not sure what you should do you may like to ask appropriate professionals for advice.
Thanks for your patience
breaker
IMPORTANT UPDATE
EGM CALL
I make the following obligatory disclaimer and cover note - please read:
Disclaimer
While the PIF Action Group Inc (PIFAG) has endeavoured to provide a full explanation regarding the motions, it has had to rely on publicly available information concerning the affairs of the Premium Income Fund and its existing Responsible Entity, Wellington Capital Limited (Wellington).
None of the requisitioning members, PIFAG or Castlereagh Capital Limited (Castlereagh), the nominated replacement Responsible Entity, warrants or guarantees the accuracy or completeness of the information contained in this AG Update and to the extent permitted by law disclaims any liability for any loss, however arising, from reliance on it.
To assist you in assessing the Motions, PIFAG and Castlereagh, through the Requisitioning Members, may ask the Responsible Entity to provide members with more information which may be relevant to the Motions before the Meeting. Further information will be made available to members at the following website: http://www.cascap.com.au/ Should more information be provided to you, please read it carefully together with the Memorandum Information Booklet.
Cover note
PIF AG Executives are not licensed financial advisors, lawyers or investment advisors. We are fellow PIF investors like yourself, who want to make a change for what we believe will be in our best interests. Any comments made by us are simply our personal opinions. This AG Update, in some parts, contains simply our interpretation of the actual Explanatory Memorandum Package coming to you in the mail. Our interpretation could be wrong. Please carefully read the Memorandum and form your own interpretation and understanding for any decisions regarding your PIF investment. If you are not sure what you should do you may like to ask appropriate professionals for advice.
Thanks for your patience
breaker
