Re: Octaviar MFS Premium Income Fund PIF
She [JH] jumped at the chance to take on PIF, no one else tendered.
No one else tendered??? One report in the media said that up to 25 other parties were interested -- see article below which appeared in the GC Bulletin on 13/6/08 p. 102
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Some premium questions
by Nick Nichols business editor
DISGRUNTLED investors in Octaviar's frozen Premium Income Fund are gathering numbers to force its new manager to tell them how much money they have lost.
Melbourne investor Adam Thorn, who put $250,000 into PIF in 2006, said he was hopeful Gold Coast investors could join the battle to `get the numbers over the line'.
The action group needs to get about 100 unit-holders, or about 5 per cent of the debt owed by the fund, to be able to call a meeting.
An announcement was made this week by Jenny Hutson's Wellington Capital, the fund's newly appointed responsible entity, that a meeting scheduled for the first week in July would stop the group from forming, said Mr Thorn.
The Premium Income Fund (PIF) has 770 million $1 units tied up for 360 days beyond their due maturity date.
It was the flagship investment vehicle for troubled Gold Coast financial services group Octaviar, formerly known as MFS, but the full extent of its finances has not been disclosed.
Wellington Capital assumed control of the fund after S8 founder Chris Scott completed a boardroom coup at Octaviar.
Mr Thorn said one of the issues the action group wants to confront was the immediate handover of control from Octaviar to Ms Hutson, who was the former chairperson of S8 - the tourism and travel group that is now part of Octaviar's Stella business.
Mr Thorn said he there were up to 25 other contenders vying for control of the fund, although they `never got a foot in the door'.
``That's something the action group would like the opportunity to explore and take offers and look at other responsible entities,'' he said.
``A lot of investors are concerned about the connection between Jenny Hutson and Chris Scott and the agenda of Chris Scott in getting Ms Hutson on board.''
Mr Thorn conceded Mr Scott could be acting in the best interests of investors by appointing Ms Hutson.
``But because we haven't had any transparency, it's very hard for a lot of investors, especially the elderly out there who now have to go back to work or refinance their homes.
``They just want answers. That's all they want.''
Mr Thorn said there were no detailed figures available on the fund's financial position.
``How much of the assets are invested in Octaviar or related entities?
``If Octaviar goes under, how much does the PIF stand to lose?''
Mr Thorn said although information was scant, he remained hopeful.
``I don't believe we'll get our dollar per unit we originally paid, but I don't think it's going to be as bad as some of the recent collapses we've seen.
``I wouldn't even like to hazard to guess what the worst-case scenario would be.
``By what Wellington Capital have been saying, they seem to be proactive, but I guess investors want to see action more than words.
``What we're doing is not personal. It's not against Jenny Hutson, but it's our money we have invested and we want to be sure that they remain transparent so we know the worst-case scenario.''
In her latest email to unit-holders, Ms Hutson said she would be able to `clearly define' the future of the fund at the proposed July meeting.
``I take the responsibility of trying to achieve the best outcome seriously,'' she said.
Mr Thorn said it was likely the response had come following acrimonious chatter on the Aussie Stocks Forum.
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