Wellington Capital PIF/Octaviar (MFS) PIF

[Burnt]

Re: Octaviar MFS Premium Income Fund PIF

Alternative was to vote no, appoint an independent administrator.
See Michael West article above.

Response to your question regarding better alternative.

You are quite right on one point Dangler, Breaker did a great job in starting this thread. Thank you for that. The sentiments he expressed at the beginning of this saga reflected most others, however he ended up going down the "alternative" path, shame.

 

[danger danger]

Re: Octaviar MFS Premium Income Fund PIF

That choice was as popular as a 'pork chop in a synagogue', hence we are with WC. Move on. Seamisty

LOL!! Reminds me of that joke where you say in a sarcastic way someone was so popular that even as a kid their parents had to tie a pork chop around their neck, just to get the dog to play with them!

 

[Burnt]

Re: Octaviar MFS Premium Income Fund PIF

Well it appears that the majority of unit holders did NOT think that this was the better alternative and clearly demonstrated that in their voting, giving WC an overwhelming vote of confidence.

Voting results seemed to also indicate that a very large number of unit holders were totally confused about what exactly they were voting on and therefore weren't able to register an opinion.

But anyway, time will tell I guess. Let's just hold our breath, cross our fingers and hope for the best eh.

 

[danger danger]

Re: Octaviar MFS Premium Income Fund PIF

Response to your question regarding better alternative.

You are quite right on one point Dangler, Breaker did a great job in starting this thread. Thank you for that. The sentiments he expressed at the beginning of this saga reflected most others, however he ended up going down the "alternative" path, shame.

He went down the path of most investors, including me and many other players in this fund with a lot of cashola at stake went down. No shame in that at all mate. That's the way the smart investor voted, considering the 'alternative' stunk!!

 

[great dame]

Re: Octaviar MFS Premium Income Fund PIF

Unit holders of the PIF own the Fund - WC work for the Fund and are answerable to Unit Holders. What professionalism they display in carrying out their role and in answering Unit Holders questions and providing them with accurate and reliable information !!! LOL

We can actually do something - COMPLAIN TO THE NSX - WC are now answerable to them also !!!! Keep squealing.

And i know who will be squealing the loudest one day All the poor miss lead souls who votes yes Saying what fools we were to be taken like that ////////////

 

[CableGuy]

Re: Octaviar MFS Premium Income Fund PIF

SNIP...I wasn't aware that there was ever a better alternative scheme apart from liquidation on offer Burnt.Apparently I wasn't alone on making these very clever observations. Seamisty

Unit holders were only presented with a subset of available options which suited WC. There was no real choice on offer.

You put blinkers on a horse to keep it's attention focused on what you want rather than what it wants, after a while it just forgets about the blinkers and what is behind them. *insert flogged nag here*

-----
"I didn't do this to you, you did this to you."

 

[JohnH]

Re: Octaviar MFS Premium Income Fund PIF

Voting results seemed to also indicate that a very large number of unit holders were totally confused about what exactly they were voting on and therefore weren't able to register an opinion.

But anyway, time will tell I guess. Let's just hold our breath, cross our fingers and hope for the best eh.

Voting results also indicate that a very small number of unit holders were totally confused about what exactly they were voting against, and terefore weren't able to register a constructive opinion.

 

[great dame]

Re: Octaviar MFS Premium Income Fund PIF

And i know who will be squealing the loudest one day All the poor miss lead souls who votes yes Saying what fools we were to be taken like that ////////////

Yes these miss guider souls were all lead to believe by JH that they could bail out on the NSX & get about 45 cents a unit She also said stay in the fund and get a $1 on the exchange in 3 to 5 years Gee whiz Well all that cheap talk sure got all the suckers to vote yes I realy cant blame them in a way none of them would clue about finance which is now going to cost them plenty /////////

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

I couldn't wait any longer for the hotline to call me back earlier. Does anyone have any sort of update regarding the October distribution? If the hotline is over-extended because of investors wanting to know about this once-promised payment, WC have only themselves to blame for allowing it to reach this point. This is becoming a very serious situation for WC (apart from us) because trust is everything in these circumstances. The evolving tensions must be creating a lot of anxiety for many - but the ones who don't read this thread are probably unaware of the problems. And WC are presently making it a pretty rough ride for their loyal supporters.

 

[great dame]

Re: Octaviar MFS Premium Income Fund PIF

I couldn't wait any longer for the hotline to call me back earlier. Does anyone have any sort of update regarding the October distribution? If the hotline is over-extended because of investors wanting to know about this once-promised payment, WC have only themselves to blame for allowing it to reach this point. This is becoming a very serious situation for WC (apart from us) because trust is everything in these circumstances. The evolving tensions must be creating a lot of anxiety for many - but the ones who don't read this thread are probably unaware of the problems. And WC are presently making it a pretty rough ride for their loyal supporters.

Selciper i have been waiting 2 days now for WC to get back to me Dane ///

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

NSX announcement regarding no Oct payment, and legal proceedings...
http://www.nsxa.com.au/ftp/news/021720841.PDF

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Dear Investor,
The financial services industry is experiencing a
most difficult period. The All Ordinaries index
has dropped by 28.15% since 1 July 2008, with
almost half of that decrease occurring in the 2
weeks since our general meeting of unitholders
was held on 15 October 2008.
The global financial crisis has seen the federal
government take extraordinary steps to attempt to
stabilise the nation’s financial system, including
the unprecedented step of guaranteeing all bank
deposits.
In response to these measures, all Australian
mortgage funds have experienced great
difficulties and many are frozen. It seems that an
unintended consequence of the announcement is
the creation of concerns amongst investors about
the security of income investments not covered by
the federal government guarantee. There is
currently a combined $22 billion of funds frozen
in the mortgage fund sector in Australia.
Historically, mortgage funds have provided
investors and borrowers with competitive
alternatives to traditional lenders. Recent market
events have seen this change. These fund
managers would have typically been the logical
place for borrowers from the Premium Income
Fund to seek to refinance once their loan term had
come to an end.
The availability of credit has tightened and this
had the effect of purchasers of the underlying
assets from the Premium Income Fund, or from
the Fund’s borrowers being unable to raise the
required finance to complete the transactions.
The 3 settlements planned for October 2008 with
planned realisations of over $25 million have
failed to settle. Consequently the Premium
Income Fund debt remains at $9.5 million and the
Fund is unable to pay an October distribution.
Asset realisations for the period
2 May 2008 to 24 October 2008
The following assets have been realised between
2 May 2008 and 24 October 2008.
Estimated
Realisable Value
at 31 May 2008
Actual
Realisation
Mortgages
Hastings Point NSW
(refinance)
$14 million $12.659 million
Sylvania NSW $19.682 million $20.018 million
Creswick VIC (partial
sale of underlying assets)
$2.434 million $2.434 million
Brooklyn West VIC $0.5 million $0.549 million
St Leonards NSW $8 million $8 million
Asset backed securities
Sydney based company
(partial realisation of
underlying assets)
$2 million $2 million
Living and Leisure
Australia Trust loan
(partial realisation)
$10 million $10 million
Diversified trust $10.084 million $10.2 million
Property Fund $17 million $17 million
Cash $15.417 million $15.417 million
Total $99.117 million $98.277 million
Wellington continues to work closely with each
borrower to facilitate the repayment of their
finance facilities in this difficult financial market.
In circumstances where the borrowers are
ultimately unable to repay, the Premium Income
Fund has first ranking security over these assets
and will take appropriate action to ensure
Unitholder’s funds are secured against the asset by
becoming mortgagee in possession.
Wellington remains focussed on orderly asset
management and realisation to enable cash
payments to be made to Unitholders.
Premium Income Fund
Investor Update: 28 October 2008
For further information please contact:
Jenny Hutson
Chairperson
Wellington Capital Limited
as responsible entity of the Premium Income Fund
ACN 114 248 458 AFSL 291 562
Phone: 1300 854 885
Email: investorrelations@newpif.com.au
Bond Street Custodians Limited –
Federal Court Proceedings
As notified to Unitholders and the market on
Friday 24 October 2008, Bond Street Custodians
Limited filed a claim against Wellington
Investment Management Limited on
16 October 2008 being the day after our general
meeting for $16.254 million in relation to a
redemption request for 16.254 million units in the
Wholesale Premium Income Fund which was
lodged on 21 January 2008. This was shortly prior
to the suspension of redemptions.
Wellington Investment Management Limited
intends to vigorously defend the claim on behalf
of all Unitholders.
The underlying Unitholders of the 16.254 million
units are clients of Avenue Capital Management
Limited (‘Avenue’), a financial planning
organisation.
Paul Manka and Michael Hiscock were members
of the board of Avenue at the time the redemption
request was lodged. Paul Manka was a director of
MFS Limited at that time, and is now Chairman.
Michael Hiscock was a director of MFS Limited
until 16 January 2008. Paul Manka resigned from
the board of Avenue on 4 February 2008, and
Michael Hiscock on 4 June 2008.
The legal action is currently scheduled to be
before the Court on 14 November 2008.
Octaviar Limited –
Support Facility and Supreme Court
proceedings
The first meetings of creditors of Octaviar
Limited and four of its subsidiaries, including
Octaviar Administration Pty Ltd were held on 24
September 2008.
A further creditors meeting is due to be held by 19
December 2008. The board of Wellington is in
continued discussions with the administrator with
a view to recovery of the $50 million Support
Facility and $147.5 million the subject of legal
proceedings before the Supreme Court of
Queensland.
October cash payment
The first instalment of the cash payment was
scheduled to be paid by the end of October 2008.
The board of Wellington Capital Limited has
resolved that in view of the extraordinary market
instability and the current inability of borrowers
of the Premium Income Fund to refinance their
debt facilities away from the Premium Income
Fund, cash payments to investors cannot proceed
until there is more certainty.
It is a very difficult and uncertain time, and the
board is aware of and concerned about your
economic hardship. I assure you that the team at
Wellington is working hard to ensure the value of
Unitholders’ investment in the Premium Income
Fund is maximised.
Wellington, as you are aware, will not receive any
management fees from the Premium Income Fund
until after cash payments totalling 3 cents per Unit
have been made to all Unitholders

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Terrible news. Sounds like MFS-Speak all over again.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Wellington Capital staff had the decency to call me as the announcement was posted on the NSX as I had made several enquiries on behalf of myself and other unitholders earlier today. They were all briefed after an emergency meeting was called by the WC board at 3.00pm today. Thay are all extremely dissapointed and shattered at having to pass on this extremely unwelcome news.The distibutions were to be paid from 3 planned settlements that ALL fell through due to being unable to secure any refinancing from ANY institution. WC is continuing to work with these people but can do nothing until finance is secured. The banks are not even lending. Devastating news for all concerned. Seamisty

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Terrible news. Sounds like MFS-Speak all over again.

We can only be thankfull that our remaining assets will not be siphoned off. I actually sent a copy of one of your earlier posts to WC this morning Selciper and along with my e-mail and asked that we please be informed and updated. Sadly the news is very distressing. Seamisty

 

[mgr2118]

Re: Octaviar MFS Premium Income Fund PIF

Can't understand that, less than 2 weeks ago, at the Shareholders Meeting, the Oct distributions were still promised.

Also, during the last week, many who have rung the WC hotline have been promised that the Oct distributions WILL BE PAID.

Surely, any professional organisation would have an understanding of their cashflow and expenses, and these would have been the basis of the assurances offered the shareholders during the Shareholders meeting and telephone responses to WC hotline callers.

One might think it very convenient that this last minute removal of distributions is now blamed on the current financial marketplace. We should remember:-

* whereas other funds have recently had their redemptions frozen, the PIF redemptions facility has been completely removed;
* WC have been managing assets for 5 months, so there should be no surprises

If we were shareholders in a public listed company (we are NSX listed) then I would think that we should have some recourse on the professionalism of the Management Team.

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

Can't understand that, less than 2 weeks ago, at the Shareholders Meeting, the Oct distributions were still promised.

Also, during the last week, many who have rung the WC hotline have been promised that the Oct disctributions WILL BE PAID.
....

Here are some of the emails from WC to unit holders on Friday 24th Oct...

Hi demodocus and All, You must have misinterpreted your information demodocus, the distributions are STILL ON TRACK!!! The following is an e-mail I received from WC just now::::Thank you for your email.

The directors of Wellington Capital Limited have resolved to make cash payments of 3 cents per unit to all unitholders by 24 Deember 2008, with the first instalment payable by the end of October 2008.

Kind regards

Caroline Snow
Associate Director
...

A senior staffer at Wellington has advised me in writing that WC is determined to make the first payment of 1.5c by the end of this October and the second by 24 December.
....

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Here are some of the emails from WC to unit holders on Friday 24th Oct...

Dora what do you hope to achieve by re posting these? Obviously WC fully intended to pay the money, the expected settlements budgeted for the payments were not made. Every single investor is in the same sinking boat. The global economy is far worse than it was 5 months ago and possibly will get much worse. Even if the Fund had of been liquidated, there is possibly no buyers except a few waiting in the sidelines for a bargain basement price. Seamisty

 

[flatback]

Re: Octaviar MFS Premium Income Fund PIF

Here are some of the emails from WC to unit holders on Friday 24th Oct...

Dora boots i have to agree with you i have been reading threads from seamisty for some months now , the many and varied threads from seamisty ( this person seems determined to always want to please everybody at the same time)and those that they dont agree with, they just shut them out of the thread, from their point of view, so that persons views are removed and cant influence seamistys.
Im sorry seamisty,, but you dont know any more than the rest of us do, so give us a break please . flatback

 

[DoraNBoots]

Re: Octaviar MFS Premium Income Fund PIF

Dora what do you hope to achieve by re posting these? Obviously WC fully intended to pay the money, the expected settlements budgeted for the payments were not made. Every single investor is in the same sinking boat. The global economy is far worse than it was 5 months ago and possibly will get much worse. Even if the Fund had of been liquidated, there is possibly no buyers except a few waiting in the sidelines for a bargain basement price. Seamisty

Any action group representative worth their salt would see the significance of these emails.