Re: Octaviar MFS Premium Income Fund PIF
if she has not paid anything for it,by what right does she run the fund, my dear old dad used to say 'a mans heart is where his money is,if you havent got your money in it your hearts not in it'' and it's easy to spend someone elses money
Welcome to the forum sume, I will post an earlier press release in relation to the Call Option Deed in regard to WC management of the PIF::::
9 May 2008
Acquisition of Octaviar Investment Management Limited
Wellington Capital today announced that it had entered into a Call Option Deed with a wholly owned
subsidiary of Octaviar Limited which grants Wellington Capital an option to purchase the shares held by the
Octaviar Limited subsidiary in Octaviar Investment Management Limited, the responsible entity of:
Octaviar Premium Income Fund ARSN 090 687 577
Octaviar Wholesale Premium Income Fund ARSN 107 973 071
Octaviar Cash Enhanced Fund ARSN 118 285 760
Octaviar Maximum Yield Fund ARSN 109 106 658
Octaviar Dynamic Growth Equity Fund ARSN 121 883 020.
On 2 May 2008, the existing directors of Octaviar Investment Management resigned and a new board was
appointed, comprising:
Jenny Hutson;
Robert Pitt; and
Craig Wallace.
Following execution of the Call Option Deed, Wellington Capital will be paid a management fee in relation
to Wellington Capital’s management of Octaviar Investment Management and its underlying funds. The call
option is exercisable by Wellington Capital at any time up to and including 31 August 2008.
In the event the Call Option is exercised, the purchase price payable by Wellington Capital for the
acquisition of Octaviar Investment Management will be equal to:
a multiple of four times the actual profit of Octaviar Investment Management for the 12 months
period following the acquisition; plus
the value of the net tangible assets of Octaviar Investment Management at the end of that 12 month
period.
‘The current staff of Octaviar Investment Management will work with the funds management team at
Wellington Capital to ensure an orderly transition and to ensure that Octaviar Investment Management
continues to be committed to working in the best interests of Unitholders during this difficult time to ensure
that, given current market conditions and the position of the funds, the best possible outcome is achieved for
Unitholders’, said Jenny Hutson, Managing Director of Wellington Capital.:::also refer page 63 of the explanatory memorandum :::::1: Management fee - The responsible entity is entitled to be paid a management fee of up to 0.7% per annum
(inclusive of GST) of the gross value of assets under management. As at 31 May 2008, the value of assets
under management was $413 million. Based on this amount, an annual management fee of up to $2.89 million
is payable to the responsible entity out of the Fund’s assets. No management fee will be charged until after 3
cents in cash has been paid to Unitholders.
2: Other management costs - The Fund’s ongoing costs are estimated at an amount equal to be approximately
0.32% (inclusive of GST) of the gross value of the assets of the Fund. As at 31 May 2008, the value of assets
of the Fund was $413 million. Based on this amount, the responsible entity forecasts the total other costs for
managing the Fund to be $1.32 million. Included in this amount are accounting, audit, custodian and compliance and committee costs.:::: Seamisty