Wellington Capital PIF/Octaviar (MFS) PIF

[breaker1]

Re: Octaviar MFS Premium Income Fund PIF

An Action Group investor received a phone call from his brother Stuart who applied for early redemption. Even just a small sum to keep him going. This Action Group member has written this note in the hope that I might put it on the Aussie Stock Forums for them.

" I pity anyone trying to get an early redemption under the hardship offer. My brother received a curt letter dated June 5 refusing his request. Not even an offer of $5000.00 out of $195000.00 to help him out. He has no cash and lives on handouts from friends and family. This might indicate the condition of the fund and type of people we are dealing with. Letter was signed by Guy Hutchins

BRING IN THE ADMINISTRATORS A.S.A.P!"
or I might add - another RE.

I would agree that the criteria for at least partial redemptions should be re-evaluated by Wellington Capital for investors in serious need, especially now that Octaviar no longer run the show. I will be putting to Jenny on Monday that she on humane grounds, should immediately begin a fairer criteria for partial redemption or distribution payments for people in Stuarts position. That is, not an unfair priority, it is simply humane. This means WC making a business judgement on fairdinkum positions of hardship. If someone can prove hardship, but not on the previous rediculous criteria (half dead on a slab with few to no assets) - then that persons distributions should recomence. This would disadvantage the rest of us very little, as it would appear distributions may recommence in several months, all going well, anyway.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

An Action Group investor received a phone call from his brother Stuart who applied for early redemption. Even just a small sum to keep him going. This Action Group member has written this note in the hope that I might put it on the Aussie Stock Forums for them.

" I pity anyone trying to get an early redemption under the hardship offer. My brother received a curt letter dated June 5 refusing his request. Not even an offer of $5000.00 out of $195000.00 to help him out. He has no cash and lives on handouts from friends and family. This might indicate the condition of the fund and type of people we are dealing with. Letter was signed by Guy Hutchins

BRING IN THE ADMINISTRATORS A.S.A.P!"
or I might add - another RE.

I would agree that the criteria for at least partial redemptions should be re-evaluated by Wellington Capital for investors in serious need, especially now that Octaviar no longer run the show. I will be putting to Jenny on Monday that she on humane grounds, should immediately begin a fairer criteria for partial redemption or distribution payments for people in Stuarts position. That is, not an unfair priority, it is simply humane. This means WC making a business judgement on fairdinkum positions of hardship. If someone can prove hardship, but not on the previous rediculous criteria (half dead on a slab with few to no assets) - then that persons distributions should recomence. This would disadvantage the rest of us very little, as it would appear distributions may recommence in several months, all going well, anyway.

The problem is while I am sympathetic to all holders that can demonstrate hardship, the majority of holders have arranged their budgets and structured their incomes to incorporate the income they thought they were going to receive from their investment in the PIF. Every single holder is experiencing financial hardship in some form. Many do not have the back up from government pensions because they do not meet the criteria.The best solution is for the fund to resume distributions. We have to concentrate on an outcome beneficial for everyone as soon as possible in my opinion. Seamisty

 

[breaker1]

Re: Octaviar MFS Premium Income Fund PIF

The problem is while I am sympathetic to all holders that can demonstrate hardship, the majority of holders have arranged their budgets and structured their incomes to incorporate the income they thought they were going to receive from their investment in the PIF. Every single holder is experiencing financial hardship in some form. Many do not have the back up from government pensions because they do not meet the criteria.The best solution is for the fund to resume distributions. We have to concentrate on an outcome beneficial for everyone as soon as possible in my opinion. Seamisty

That's just the point - this investor has worked hard for his lump sum and structured his income, which was reliant on the good faith of Octaviar and their PDF. They have been seriously let down and obviously caught out. Further, they have been let down by ASIC who have directed Centrelink to continue to count former distributions, now stopped, as if they were still being paid, simply because the PIF is not in receivership and so farcically classed as viable. So many investors on here are getting a double whammy - kicked in the head on one side by the PIF and then kicked in the guts by ASIC / Centrelink. Many pensioner PIF investors are in a serious financial position and need to be considered. That is why the hardship clause is in there under law anyway - I just want it relaxed a bit, because this has been dragging for about 4 months now.

I seriously think ASIC needs to pull it's finger out and step in now with C/L and the PIF.

 

[wally3218]

Re: Octaviar MFS Premium Income Fund PIF

ASIC and Goverment should be doing something about this, it's gone on to long for them not to have made a statement.
What pisses me of more is the emails I have sent to the goverment ministers get no reply at all.
Centrelink say there hands are tied but I'm sure there is something they can do if they want to.

 

[zixo]

Re: Octaviar MFS Premium Income Fund PIF

Hi,

I was wondering if anyone can clarify this

I have been told the ONLY Reason The Premium Income fund was put under strain was because of the WHOLESALE Premium Income fund ( which we were never told was Linked). The Wholesale Investors suddenly redeemed their Money which is their right under their arrangement.

The Wholesale Premium Income Fund comprised of Institutional Investors who deposited more than $500,000.00.

In my opinion the ONLY reason MFS/Octaviar and all its affiliated companies exist is because or the PIF. Cash that was injected by mum and dad investors is what has made it a popular fund. The assets held by the fund were working beautifully up until the point the mother company started having problems.

 

[Mary Lynch]

Re: Octaviar MFS Premium Income Fund PIF

We all have tales of hardship. It would be hard for anyone to measure this fairly, even ASEC. Not only are we living on very little, but this fiasco has COST us 1000s of $ to date, as we had just signed a contract to buy a house (having placed our proceeds fom our previous home with MFS) when our redemptions froze. Our redemption date was 21st Jan. (to be paid out on the 31st). A NIGHTMARE it has been to say the least.

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty is right. To start sorting out who or who is not undergoing hardship is not a good idea. It will deflect WC from the real game - looking after everybody! It will just give them time to string out the whole mess for a longer period while they ruminate about who is doing it hard. Every time I use my ATM I wince. Let's concentrate on getting the this entire fiasco behind us and all of our money back immediately. WC have done nothing so far to prove themselves as the solution to our massive problem. Are they retaining the advisers who got us into this crisis in the first place?

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Hi,

I was wondering if anyone can clarify this

I have been told the ONLY Reason The Premium Income fund was put under strain was because of the WHOLESALE Premium Income fund ( which we were never told was Linked). The Wholesale Investors suddenly redeemed their Money which is their right under their arrangement.

The Wholesale Premium Income Fund comprised of Institutional Investors who deposited more than $500,000.00.

In my opinion the ONLY reason MFS/Octaviar and all its affiliated companies exist is because or the PIF. Cash that was injected by mum and dad investors is what has made it a popular fund. The assets held by the fund were working beautifully up until the point the mother company started having problems.

Zixo I don't think this is correct because if the wholesale funds had cashed out on behalf of institutional investors there would have been a lot less than $690 million remaining in the PIF and I have spoken personally to people who invested through managed funds who are in the same position as 'mum and dad' investors. Also individual investors who have substantial holdings in the PIF are classified as 'wholesale investors' as in they could negotiate a better rate of return. I think that when all is revealed I will be very surprised if the majority of the original loan of $200 million outstanding to the RBOS was not lent to MFS itself to prop up related company/subsiduaries. It is my understanding there was a loan of $50 million to the MFS subsiduary Causeway, a boutique fund manager and $67million to LLA . Regards, Seamisty

 

[Ivor Watt]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty is right. To start sorting out who or who is not undergoing hardship is not a good idea. It will deflect WC from the real game - looking after everybody! It will just give them time to string out the whole mess for a longer period while they ruminate about who is doing it hard. Every time I use my ATM I wince. Let's concentrate on getting the this entire fiasco behind us and all of our money back immediately. WC have done nothing so far to prove themselves as the solution to our massive problem. Are they retaining the advisers who got us into this crisis in the first place?

I agree that we must move on from this point and concentrate all our efforts on getting back as much of our money as possible and compensation for loss of income.
It is obvious that the people who have been dealing with us up till now do not give a **** about us or our hardships.
What concerns me is that when redemptions are finally being paid who will get first chop, if past happenings are any guide it won't be you or I first in line.
There are so many disgraceful events in this legacy of ineptitude and underhanded operations that we cannot expect that to change now unless we change it ourselves.
There are so many ongoing and continuous disclosure breaches that we must not allow these people to continue to have control over our financial future without our input and knowledge of what is going on.
I congratulate Breaker1 and all of those who are working so hard to get us a voice, together we will get somewhere but as individuals we have no chance and will have to just have to cop what they finally dish up. It does not matter whether it is WC or OCV or individuals in these organisations it is obvious that they will look after themselves before they consider us. Every investor should get involved to give us some chance of a better outcome.
That means sending out emails, making phone calls, sending letters, talking to the newspapers etc, and registering with breaker1 for the PIF action group

 

[breaker1]

Re: Octaviar MFS Premium Income Fund PIF

Seamisty is right. To start sorting out who or who is not undergoing hardship is not a good idea. It will deflect WC from the real game - looking after everybody! It will just give them time to string out the whole mess for a longer period while they ruminate about who is doing it hard. Every time I use my ATM I wince. Let's concentrate on getting the this entire fiasco behind us and all of our money back immediately. WC have done nothing so far to prove themselves as the solution to our massive problem. Are they retaining the advisers who got us into this crisis in the first place?

Yes! WC has already said, they will retain certain staff from the PIF - I will confirm if this includes Guy Hutchings, Monday.

 

[breaker1]

Re: Octaviar MFS Premium Income Fund PIF

For those concerned about the vagueness of the PIF net assets:

If WC wants to list the PIF on the NSX (a budget version of the ASX) - then the PIF will have to be fully audited before the NSX will even allow the PIF to list on it.

This might be the main reason Jenny has contracted PWC to do an audit.

After this audit, any shortfalls in the PIF should be there to be seen by all investors.

 

[communique]

Re: Octaviar MFS Premium Income Fund PIF

For those concerned about the vagueness of the PIF net assets:

If WC wants to list the PIF on the NSX (a budget version of the ASX) - then the PIF will have to be fully audited before the NSX will even allow the PIF to list on it.

This might be the main reason Jenny has contracted PWC to do an audit.

After this audit, any shortfalls in the PIF should be there to be seen by all investors.

Breaker, Are you alluding to the fact that we may be paid back in shares? If you are, that is not how we invested. That would be unfair and manipulative.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Breaker, Are you alluding to the fact that we may be paid back in shares? If you are, that is not how we invested. That would be unfair and manipulative.

Good morning Comminique, it seems the general consenus of opinion, at this time, is that this action will not be acceptable to holders. This could be a key issue for holders, and this being the case, the Action Group is going to need very strong support to block/fight this. As many investors of the PIF that can possibly make it should attend the proposed Wellington Capital meetings/forums and voice their concerns. Perhaps Jenny Hutson's intentions are not to take this path with the PIF in the immediate future , this being the case we need to be informed either way. I am of the understanding Breaker1 is hoping to speak with her on Monday and will inform members of the outcome from this via e-mail. For investors who have not registered their details with the Action Group and would like to, please contact breaker1@aapt.net.au Regards, Seamisty

 

[Mary Lynch]

Re: Octaviar MFS Premium Income Fund PIF

Just a note to anyone who has not paid their 2007 tax and is afraid of being fined. It seems that unlike Centrelink the tax department is sympathetic to our situation. We have $13000 to pay, and they have said that we can pay it back at the rate of $75 per month until we have our $$ unfrozen, or are able to pay on or before that time. Even though a fine will accrue (at a furious rate) they will deduct it after full payment....as long as we pay it ASAP.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Thought the Action Group might need a logo for consistency in presentation. Let me know what you think.

 

[communique]

Re: Octaviar MFS Premium Income Fund PIF

Thought the Action Group might need a logo for consistency in presentation. Let me know what you think.

Great work Marcom, we think that all action group members should wear a badge to their respective meetings with 'ASK ME FOR DETAILS' and the investor id on it.

Breaker, Please advise latest numbers for action group and what to expect now. i.e. formal process. Numbers must be there now. Would like to know questions posed to JS on behalf of action group tomorrow.
Many thanks again for your hard work.

 

[zixo]

Re: Octaviar MFS Premium Income Fund PIF

Guy Hutchins was the man at the helm of the Octaviar PIF when it suddenly started having problems. Guy Hutchins was the CEO who’s letters to Investors has been of news that was progressively getting worse.

Given the lack of disclosure of debt and loans, and the way Octaviar and Guy Hutchins have treated the Investors in the PIF I think Wellington should have major reasons to be concerned.

Wellington Capital ought to be careful given the future legal action may act as a conflict.
Guy Hutchins is still working closely with Wellington who “may” be genuinely working in the best interest of Investors.

I ‘m not sure what everyone else’s view is ,but he is the man who saw the mess unfold. Maybe he is the man who would be best to help fix it and also redeem his reputation.

JH and her close association with Chris Scott could be a concern for everyone, Particularly since Chris Scotts main Interest is to save Octaviar and JH’s Interest is supposed to be ONLY for the Investors, who have up untill now, been ignored.

 

[communique]

Re: Octaviar MFS Premium Income Fund PIF

Has anyone heard from Breaker, we are waiting for instructions and have heard nothing.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Has anyone heard from Breaker, we are waiting for instructions and have heard nothing.

It is my understanding Breaker will be speaking with Jenny Hutson today and will contact members by e-mail with an update after that. I think he was going to try and reply to some new members yesterday and prepare himself for today's contact with JH. It is hard to know what direction to take as a group until we have all the correct information regarding the PIF. The important thing is that we have as many members as possible on standby in the event that we will need to take extreme action regarding the management rights of the Fund, being the Resposible Entity. I personally am hoping this will not be necessary and that Wellington Capital prove to be competent and trustworthy and continue to run the Fund as it was originally intended. This does not include publicly listing the PIF. Love the logo Marcom! Regards, Seamisty

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

There's a new announcenent by LLA this morning.