Wellington Capital PIF/Octaviar (MFS) PIF

[breaker1]

RE: SMH article above

Wellington are definitely on the move to entrench themselves as RE of the Fund with the associated purchase of the 53M PIF units via former director of Wellington, Craig Wallace

It makes me think, why are they trying so hard to remain as RE, what on earth are they trying to hide? Are PIF matters worse than we already think?

 

[Cookie1]

Just received my notice of Fund Briefing Meetings in the mail. WC wants us to mark the appropriate box with an "X" to indicate the session we want to attend and return it to them by mail, fax or email.

Does this mean that if we don't pre-register we won't be allowed in?

Also I notice that units are still trading on the NSX but the price is steadily dropping down from 20 cents yesterday now to 13 cents. Am waiting to see what JH's explanation is for the sudden increase in activity, selling price and volume.

 

[Duped]

My guess is that someone might be trying to push up the VWAP (volume weighted average price). Remember that WC (Hutson?) has already threatened further dilution by issuing more units. This time they could be a different Class of units. Yikes. Can they be preferential units?

Generally, a higher VWAP means it's easier to attract capital.

Also, NTA per Unit at 30 June 2011 will be much lower. My guess is in the mid to low 20c. If the VWAP is up around that level then the Courts and Press won't be able to point out a substantial difference between NTA and the price paid for the new units. I.e. Scott Rochford (see seamisty's post just below) wrote "The raising - which was priced at a 70 per cent discount to the fund's net tangible asset backing ".

Note that WC will get paid on NTA and not NTA per unit. I.e. it doesn't matter how much Hutson dilutes the PIF units, her company, and hence Hutson, gets paid the same.

I'm off to study up on Wash Transactions.

IMT - I'm watching out for a fresh placement of units to dilute the value of existing units..

 

[Cookie1]

My guess is that someone might be trying to push up the VWAP (volume weighted average price). Remember that WC (Hutson?) has already threatened further dilution by issuing more units. This time they could be a different Class of units. Yikes. Can they be preferential units?

Generally, a higher VWAP means it's easier to attract capital.

Also, NTA per Unit at 30 June 2011 will be much lower. My guess is in the mid to low 20c. If the VWAP is up around that level then the Courts and Press won't be able to point out a substantial difference between NTA and the price paid for the new units. I.e. Scott Rochford (see seamisty's post just below) wrote "The raising - which was priced at a 70 per cent discount to the fund's net tangible asset backing ".

http://www.nsxa.com.au/ftp/news/021724205.PDF

Note that WC will get paid on NTA and not NTA per unit. I.e. it doesn't matter how much Hutson dilutes the PIF units, her company, and hence Hutson, gets paid the same.

I'm off to study up on Wash Transactions.

IMT - I'm watching out for a fresh placement of units to dilute the value of existing units..

JH in the NSX Release dated 11 July 2011 under "Capital raising" stated: "The units which will be offered will be a new class of units. The class will be issued in accordance with the Constitution of the Fund as it currently stands."

It's time to read the constitution again!

 

[breaker1]

Does this mean that if we don't pre-register we won't be allowed in?

Also I notice that units are still trading on the NSX but the price is steadily dropping down from 20 cents yesterday now to 13 cents. Am waiting to see what JH's explanation is for the sudden increase in activity, selling price and volume.

The 23rd Aug letter from Wellington does not specify that you can't attend if you don't register. I have asked Wellington to clarify on that point and will advise

The rapid drop down from 20c was predictable

 

[breaker1]

Market crash 'could hit within weeks', warn bankers
"A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets."
http://www.telegraph.co.uk/finance/...rash-could-hit-within-weeks-warn-bankers.html

 

[breaker1]

The 23rd Aug letter from Wellington does not specify that you can't attend if you don't register. I have asked Wellington to clarify on that point and will advise

Wellington advises:

"If a Unitholder does not register their attendance for an information session, they may still attend"

Breaker

 

[seamisty]

Wellington advises:

"If a Unitholder does not register their attendance for an information session, they may still attend"

Breaker

So it was therefore NOT neccesary to go to the expense of a mailout (unless you maybe have a pecuinary interest in the printing company?) PIF unit holders could have lodged their indication of attendence via email or the hotline. Was WC maybe trying to confuse some unitholders into thinking that it was essential to pre register so that WC knew how much armour/bodguards would be needed for the meetings and just exactly who would be present? Rest assured there will be a reason for it and it won't be so WC don't run short on tea bags and biccies!!. Seamisty

 

[ASICK]

JH in the NSX Release dated 11 July 2011 under "Capital raising" stated: "The units which will be offered will be a new class of units. The class will be issued in accordance with the Constitution of the Fund as it currently stands."

It's time to read the constitution again!

The new class will probably be a good investment (depending on the rate of return). My guess is that such units will function like debt - the units will be redeemable before existing units and will earn interest to boot.

In its' explanatory memorandum, WC stated (in part), "... It is not the intention of the responsible entity to borrow for long term investing. It is the responsible entity’s aim to borrow only for short periods and repay the funding as soon as practicable. As other investments mature or are liquidated then the borrowing will be repaid. ..."

It'll be interesting to see if WE equates a new class of investment as the equivalent of debt, and whether such new class will comply with WC's intentions as outlined in the above excerpt.

 

[Duped]

Thanks ASICK. For those of you who don't understand it means dilution dilution dilution. The value of your units is watered down.

Let's see if Hutson points to the high price currently being achieved on the NSX and tries to claim the increase is due to WC's initiatives.

The important question to ask is - will those buyers be there when YOU want to sell.

 

[selciper]

All these recent moves remind me of the old saying , "It's important to know that you are dealing with shadows."

 

[simgrund]

Wellington advises:

"If a Unitholder does not register their attendance for an information session, they may still attend"

Breaker

Thanks breaker1;
I wonder if JH should have expanded on this by advising of any plusses for being a registered attendee?
Surely there seems to be further reason than just getting an idea of a potential number so that catering would not be caught short.
Regards,

 

[charles36]

Thanks breaker1;
I wonder if JH should have expanded on this by advising of any plusses for being a registered attendee?
Surely there seems to be further reason than just getting an idea of a potential number so that catering would not be caught short.
Regards,

Simgrund, you will never get anywhere with Wellington Capital by thinking in a reactive mode, the deed is already done and dusted. You have to think forward, what is going to happen next and be ready for it. Wellington Capital are more worried about what the PIFAG are doing than we are about them. My advice is "so they should be worried."

 

[simgrund]

Simgrund, you will never get anywhere with Wellington Capital by thinking in a reactive mode, the deed is already done and dusted. You have to think forward, what is going to happen next and be ready for it. Wellington Capital are more worried about what the PIFAG are doing than we are about them. My advice is "so they should be worried."

I take this as

do unto others as they w'd do unto you

.
I am off to Gold Coast briefing but am certainly not registering.
I would love to be a privy to WC's impending pile of worry.
Well armed with Patience.
Cheers,

 

[simgrund]

ASIC moves:

Liquidator gets that sinking feeling
Michael Evans
August 27, 2011

THE high-profile liquidator John Lord may be looking for a new name for his luxury dinghy, The Liquidator, after the Australian Securities and Investments Commission cancelled his registration to practise for failing to disclose conflicts of interest in hundreds of administrations.

ASIC said Mr Lord, a former partner at the accountancy and advisory firm PKF, failed to disclose commercial relationships with 225 companies he was acting for as liquidator, while Atle Crowe-Maxwell, a current PKF partner, failed to disclose interests in 105 companies.

While it stripped Mr Lord's registration, ASIC sought unspecified ''undertakings'' from Mr Crowe-Maxwell.
Advertisement: Story continues below

The regulator declined to comment on the differing penalties for the liquidators for the same contravention, although it is understood the smaller number was taken into account.

The conflicts came to light in a startling corporate irony when Mr Lord found his debt collecting firm Premium Collections being liquidated in 2009.

Mr Lord and Mr Crowe-Maxwell were indirect shareholders - Mr Lord was also a director - in Premium Collections which collapsed in 2009, owing staff and creditors $1.7 million.

ASIC detailed how in one instance, the two men applied, via the courts, to act as official liquidators to indebted companies, but did not tell the court of their existing commercial relationships as creditors.

Read more: http://www.smh.com.au/business/liqu...ing-feeling-20110826-1je9d.html#ixzz1WCDWo6Ag

Regards,

 

[selciper]

Based on the premise that bad excuses are worse than none, the forthcoming meetings will probably be designed around a structure of overbearing pride and hyperbole (“I and my team...”). That would be a risky tactic to follow in the prevailing climate.

 

[zeva]

Now that JH has her cohorts with a big slice of PIF voting units, could this new road show of hers be to have the numbers to changes to the PIF constitution, so that she and her merry band of Robbin Hoods can take the rest of the PIF assets with little or no return to the original investors.

 

[MAE]

The below article was in Saturdays "The Bulletin" Gold Coast, 27th August, 2011

The Paper Writes, article by (Nick Nichols)

"Wellington to Explain Surge"
A 200 per cent surge in the unit price of Wellington Capital's Premium Income Fund has triggered a "please explain" from the National Stock Exchange.
The investment's fund's units jumped from 6.6c to a high of 20c on Thursday following a series of high volume trades, including one in which 9.9 million units were traded.
The monster trade, handled by broker Camerons, was worth $1.9 million.
Camerons also handled an earlier trade for one million units totalling $200,000.
Wellington Capital has until Monday afternoon to respond to the NSX request for information it may have to explain the sudden interest in the Premium Income Fund (PIF).
Wellington managing director Jenny Hutson (pictured) (I have omitted picture) yesterday said she was unaware of any information explaining the price surge and would lodge a response with the NSX on Monday.
She said Wellington Capital was observing its obligations for market transparency.
The fund is due to deliver its financial results in September, ahead of a national roadshow to update unitholders in Sydney, Melbourne and the Gold Coast.
"Hopefully this is a step in the right direction for unitholders," Ms Hutson said of the buyers interest in the fund.
The latest round of share trades has all but absorbed standing sell order for units, with only 460,000 PIF units on offer at 25c each.
The units last traded at 17c yesterday."

As per usual Ms Hutson "knows nothing"!!

 

[Cookie1]

NSX Disclosure 29 Aug 2011: http://www.nsxa.com.au/ftp/news/021724329.PDF

Craig Wallace and his Yuan Essentials Pty Ltd acquired on 25 August 2011 a further 32,651,654 PIF units @ $0.139 per unit (3.93% voting power). With the 53+million acquired last week, he now holds 10.37% voting power of all units in the PIF.

Why would anyone in their right mind buy into the PIF unless they know something that the NSX and original investors don't know. Obviously WC and JH don't have any idea about transparency and integrity. People like this should be banned for life from ever touching anyone else's money or assets!

 

[selciper]

Can 't help asking myself whether JH has made a serious error of judgement by calling next week's meetings. Is the WC 'team" so out of touch as to believe that the audiences will silently accept craftily prepared propaganda?