Wellington Capital PIF/Octaviar (MFS) PIF

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

Earlier today I was just a little happier, thinking that I might soon be able to get a few of my locked-away bank-notes out of the PIF vaults. Having read today's informative posts, I can see that this may well be another typical Queensland mirage(!). Until WC improve their credibility by being more informative, they will face increasing anger from their members' ranks.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

...
- What are the terms of the sale?
- Are we in effect financing them into the purchase?
...

My lay reading - yes we are effectively still financing the project because the last sentence reads like we only get money trickling in as the apartments are sold. (Free credit to the new 'owners' Harbour Street?) How long will it take for all of them to be sold? Were time limits put into the contract? What happens if there are unforseen circumstances like another economic downturn or if there are problems with the buildings' structure? What control do we have? Are there penalties built in if the new 'owner' doesn't perform the contract?

From my reading of the NSX release we are still carrying risk but now we've lost our most powerful right - the right of sale. Or have we? Is the right of sale written into the new contract of 'sale'?

 

[Janiss]

Re: Octaviar MFS Premium Income Fund PIF

Like Evelyn, I too regularly read these posts as it's the only way to find out what's going on with the fund. The investor updates put out by Wellington are useless as the average person would not understand a word. Why can't they write things in plain english instead of all that legal gobbledegook? (Maybe because then we would all learn about the reality of the situation.)
As usual, in relation to the sale of The Wollongong Hotel, it's very unclear about when PIF will get the money and exactly how much will be returned to investors. It's obvious that the drawn out negotiations have certainly ended more favourably for the buyer than the seller!

Seamisty's idea of media attention is a good one, preferably on television.
I'd suggest Stateline or even 4 corners - they produce very good investigative journalism. Wellington and JH need to be publically exposed for their lies and deception before their official takeover of the PIF as well as the current appalling management strategies. The previous managers and directors also need to be exposed for the fraud they've committed and the misappropriation of our money. Unfortunately this could have a detrimental effect of devaluing the fund even further, but what else have we got to lose?

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

...

Or am I missing something?

Lawry1Dog

No you're not.

But recall that JH told a Judge that PIF wouldn't pay WC a fee until the unitholders received 3c a unit. Not the sort of 'promise' one ignores? Think WC would resist the right to start feasting on those fees? Not me. Not after what the unlisted funds sector has put me through these last two years. That 3c will be on us faster than Fortress were all over OCV Ltd. (We'll just have to trust WC that they got the best price despite being inherently highly motivated to bring some cash into the fund. What do the wooden heads call it: moral hazard. Duh? It took them until the 21st century to put that ancient wisdom down on paper? Or is moral hazard just a rebranding of 'conflict of interest'?)

As for the unit price (read share price. How else do I get my money out?) Who knows why the price is so suppressed? At 17c its at a 56% discount to the 39.2c valuation given in the 09 annual report. Pretty poor but better than the 7c it was in June. Maybe trust in WC's valuations in the 2009 annual report is building? Nothing speaks louder in the share price game than dividends right? I.e. a great example of delivering on promises, being true to your word. Will increasing the 'assets' on paper be as effective?

On the other hand the $7M in expenses certainly gave the fund a battering and there's no evidence yet these massive expenses will abate? $2.9M in legals!!!! That's nearly one % of the fund a year? For what? We get nothing in the way of reassurance from WC and so we do what every self respecting investor can only do: go on past performance and assume the worst. Ergo, the share price remains smashed.

To make things all the more complicated there's the stoush between WC and the PTQ. More moral hazard. WC is inherently highly motivated to position PIF to make it look like WC was the only way to go and hence maybe avoid being held accountable for a voidable transaction.

Me, I prefer the share price to go up than get cash payments. But do I trust WC to achieve that? Track record isn't looking good.

Double up on the moral hazards. Final call soon to place your bets. Red for TRUST, black for DON'T TRUST.

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

More info on the Wollongong "sale" from Realestate source http://www.realestatesource.com.au/pif-reaps-38-million-from-city-beach-development-wollongong.html

THE Premium Income Fund has reaped $38 million from the sale of a partially completed hotel and apartment complex south of Sydney.

Harbour Street Developments, controlled by Queensland developer George Callianiotis and Rockhampton retailer Solly Stanton, have reportedly agreed to purchase the City Beach development, south of Wollongong, which includes 168 hotel rooms, 75 apartments and 10 penthouses.

Other PIF assets include the Koralbyn Resort and Hotel in Queeensland, and a 144-room resort in Creswick near Ballarat in Victoria, according to the AFR.

It also owns a prominent site on Main Beach in the Gold Coast once controlled by developer Jim Raptis.

And seamisty you'll love the last JH quote

PIF spokeswoman Jenny Hutson said "there is nothing in the portfolio that we are not happy to sell at the right price."

So it's OK to give the real estate media details of the deal but only give minimal details to the people who own the money!!!!

Developer George Callianiotis is the joint venture partner in the Port Macquarie units. http://qldpropertydevelopers.com/pdf/Capability_Statement.pdf

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Duped, register us as BLACK

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Hi All, Thanks to the new forum contributors for taking the time to add your input. I have also had several personal communications from other PIF investors who are just as concerned as to the future direction of the PIF and the potential consequences as a result of the handling of OUR ASSETS by our current RE, WELLINGTON CAPITAL and the impact it will have on unit value and overall PIF deterioration. Sentiment and support for JH has diminished to an almost nil level from the PIF investors I have contact with and her much touted business acumen is seriously being questioned. If you still have confidence in WC, please feel free to dispute this opinion and post your thoughts. PIF investors are not going to see the latest developments as a positive outcome, especially if my information was correct that there was an offer of $40million at the Jones Lang LaSalle auction regarding the Wollongong Hotel earlier in the year. Enquiries regarding todays PIN NSX announcement are continuing from some Pif investors and results will be posted on the forum I am sure. I also understand that several PIF investors have requested further details from WC and have contacted ASIC with appropriate concerns also. Keep up the pressure and the forum posts please. regards, Seamisty (Marcom, PIF spokeswoman Jenny Hutson said "there is nothing in the portfolio that we are not happy to sell at the right price",::: I will expand on that when I have more time)

 

[charles36]

Re: Octaviar MFS Premium Income Fund PIF

Marcom, I feel sorry for you. If your financial advisor considers this good news please spare me when he reports to you some bad news. When is M/S Hutson going to wake up, her total lack of transparency causes all the speculation and suspicions to run riot. Whatever happened to the lady in the redcoat who stood in front of us and told us all the wonderful things she had planned for the fund including transparency. I don't know about what other people think but for her to pay us 3 cents she needs 22 million dollars. How on earth is she going to get that in one hit from the alleged sale (pardon me "give away") of the Wollongong Hotel. Once we are paid 3 cents we are in for a bumpy ride. Expenses, fees, legal expenses, economic downtuirns etc. The longer our RE continues to lack transparency the more angst she is generating amongst the unit holders. By the way I don't know whether other unit holders are aware but JH commenced negotiations with the NSX on the 2 May, 2008. Anything that was said to the contrary about the wisdom of such intention obviously fell on deaf ears during the red coated roadshow. I am sorry to say this but the longer the RE acts this way the fund will deteriorate further from the parlous state it is already in. Hands up all those who are satisfied with the performance of the fund.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

It appears PIF investor sentiment is at an all time low (along with unit values). I received an email from another PIF investor yesterday :::Quote "I am despairing over the complete lack of information re PIF. I emailed the investor advisory group -- no response after one week. I have called Jenny Hutson -- no answer back.":::::


Has anyone else contacted the IAG and have they received a response? Seamisty

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

How Ian Verrender (SMH) views ASIC.

ttp://www.smh.com.au/business/a-sick-asic-should-be-put-out-of-its-misery-20091118-imj4.html?autostart=1

 

[simgrund]

Re: Octaviar MFS Premium Income Fund PIF

This is an open letter to the elected representatives
of Investor Advisory Committee:

Bronwyn ANDREJIC; Alana WOODFORD;

Chris MANGAN; David HUNTER



Dear Bronwyn, Alana, Chris & David,



Somewhere in an earlier post I have extended to you my personal and sincere congrats on being elected to these significant and important representative positions. No less than 41 others have nominated; so your elections should indeed be seen as a respected accomplishment.

I am certain that you follow closely this thread with twin interests; one of a PIF unit holder and the other in your capacity as the elected representative wishing to communicate with others for feedbacks, ideas, etc.

This thread was started with the sole purpose to give an open conduit for all interested unit holders to discuss and exchange all manner of interesting, and many a time, vital information. And its presence led to unitholder activism giving many of us a sense of strength and purpose.

Thanks to this facility, a sizable (over 4500) class action task force was raised.

And a great deal of noise was raised on this thread to send loud representations to government agencies.

ASIC’s actions of late are cases in point; not coincidences.

I appeal to you directly to present yourselves to us so that urgent issues can be properly prioritised and channelled where necessary. Your roles are needed.
As you are aware, there are 2 actions afoot with good prospects of recovery for PIF unit holders.
Our current and most pressing concern is this:

*That none of the recovered funds be placed into existing NSX pool where they would be subject to market valuation (7 – 14c band)
*That all recovered funds be immediately distributed to unit holders on a prorate basis.

Please advise if these concerns can be canvassed by the committee.
If privileged conduit is preferred to start these contacts, please contact me through members private messages facility.

With best regards, simgrund

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Simgrund, David Hunter was sucessful IAG candidate number four if one of the first three were not able to fulfill their role. He is also the investor that never received a response from the IAG at WC or calls to JH!!! Has JH seriously lost the plot and WANTS us to get rid of her so she can collect her generous severence payout?!?!?! Incompetency at its best IMO!!! Seamisty

 

[Jadel]

Re: Octaviar MFS Premium Income Fund PIF

The time has come to bite the bullet. Disband the Australian Securities and Investments Commission and start all over again.

For if there is one thing that has come of yesterday's mammoth Supreme Court judgment it is this: ASIC, even though it is run by lawyers, seems incapable of putting together a decent case to present to the courts.

Given it already has a less-than-impressive record when it comes

to the investigation of corporate malfeasance and white-collar crime in general, this embarrassing episode should hammer home the final nail in its coffin.

Yesterday's 3000-page judgment by Justice Robert Austin is a damning indictment on the ability of our corporate regulator.

The case against the One.Tel founders was ill-conceived, poorly conducted and riddled with errors at almost every step. Its arguments to the court were embellished and exaggerated, its evidence and analysis of the company's financial

situation deeply flawed and it failed comprehensively to convince the judge of the fundamental basis of its case - that the defendants misled the board and the market.

In a bizarre twist, Jodee (real name John David) Rich has emerged a hero, lauded by the judge for his honesty and the diligence and thought he employed during his 25 days under the blowtorch of cross-examination.

His co-accused, Mark Silbermann, was not put on quite the same pedestal but emerged with his reputation relatively untarnished.

Unfortunately, many of ASIC's witnesses were not accorded quite the same degree of credibility.

The eight-year case against Rich and Silbermann - three of them spent in court - spans three ASIC administrations; that of David Knott, Jeff Lucy and Tony D'Aloisio.

Each will have fingers pointing at the others for responsibility but only D'Aloisio could claim with any degree of credibility that the blame lay elsewhere, given the case had been running for years before his ascension to the top job.

It now will be up to D'Aloisio to convince the Federal Government and the public that ASIC's systems have been overhauled and that there will be no repetitions.

From day one, ASIC's approach appeared to be stunningly misconceived. One.Tel collapsed when the Packer and Murdoch families pulled the plug on a crucial $132 million capital raising shortly after announcing they would support it.

Any investor who bought shares during that period rightly would have felt aggrieved, as would creditors.

Instead, the investigation turned to Rich, his business partner Brad Keeling, chairman John Greaves and Silbermann after ASIC accepted arguments from the junior media moguls that they had been ''profoundly misled''. Both James Packer and Lachlan Murdoch were on the board. Both had been cornerstone investors from the start.

For more than six months before it collapsed, One.Tel had virtually no market credibility. It was burning cash by the truckload, its forecasts were being altered - usually in the negative - and its billing systems were a disaster. The share price had crashed and it was clear the company was running out of money. But incompetence is not a crime. Nor is hubris. And ASIC's shredded credibility stems from that one word - crime.

Towards the end of the last decade, the regulator embarked on a deliberate ''two-pronged'' attack when it came to prosecutions.

The theory was, given there is a lower threshold of proof required for civil action, the regulator would take a shotgun approach with a broad civil case. If it managed to hit some targets, it would then use whatever evidence was accepted in the civil action on a more focused criminal case.

The scatter-gun approach instead has led to lazy investigation and poor prosecution.

Over the years, ASIC has taken an uneven approach to white-collar crime, often employing its resources to take trophies with cases against easy targets. It was a strategy that made the statistics look good, with an overwhelming success rate in prosecutions. But it did little to instil public confidence in its abilities to rein in the excesses of the corporate world.

Its most notorious failing was its case against Steve Vizard, the alleged comedian and former Telstra director. Vizard admitted using information gained as a Telstra director to engage in share trading. While insider trading is a criminal offence, charges were never laid. Instead, ASIC cut a deal where, in exchange for frank admissions, it would impose a civil penalty of a substantial fine and a 10-year ban as a company director.

There is no shame in a regulator losing in court. Cases involving corporate crime by their very nature are complex and usually involve well-heeled defendants who can employ the best defence money can buy.

It is essential a regulator takes on the tough cases. But it cannot afford to mount the kind of sloppy arguments employed in this example.

Rich and Keeling - the founders of One.Tel - may have difficulty ever getting back into business with money raised from the public, particularly given the One.Tel debacle wasn't their first

 

[simgrund]

Re: Octaviar MFS Premium Income Fund PIF

Simgrund, David Hunter was sucessful IAG candidate number four if one of the first three were not able to fulfill their role. He is also the investor that never received a response from the IAG at WC or calls to JH!!! Has JH seriously lost the plot and WANTS us to get rid of her so she can collect her generous severence payout?!?!?! Incompetency at its best IMO!!! Seamisty

Thanks Seamisty,
I stand corrected. Please place all IAC names on this post so we are all aware of the current composition of the committee.
With apologies to David,
simgrund

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

From AFR yesterday:
"Long-suffering Premium Income Fund investors can expect some joy next year after the sale of the first major asset in the $300 million portfolio.

The partially completed City Beach hotel and residential apartment block at Wollongong, south of Sydney, has sold for about $38 million to Harbour Street Developments.

The company is controlled by Queensland developer George Callianiotis, with the backing of Rockhampton retailer Solly Stanton, founder of the discount Silly Solly's chain.

The development comprises 168 hotel rooms, 75 apartments and 10 luxury penthouses.

PIF's responsible entity, now controlled by Jenny Hutson's Brisbane based Wellington Capital, still has 29 assets on the market.

She said returns would be made to PIF's 10,000 plus unitholders from next year. "This (Wollongong) sale lets us make the payment to PIF," Ms Hutson said yesterday.

"Now we are going to be able to see the completion, realisation and cash return to the fund and therefore our investors."

Although Wollongong was the largest, other assets in the PIF portfolio include the Koralbyn Resort and Hotel in Queensland comprising accommodation, a golf course and vacant land.

At Creswick, near Ballarat, the PIF also controls an Accor-managed 144-room resort along with vacant land and a golf course. The last remaining vacant block on Main Beach at the Gold Coast, which was once controlled by developer Jim Raptis, is also on the market.

"There is nothing in the portfolio that we are not happy to sell at the right price," she said.

But Ms Hutson said she had been dogged by people wanting to pay below market value for the PIF assets for the past 18 months.

"We are delighted to sell Wollongong. I have been in negotiations all year and finally the market has to come to understand we will only accept what the assets are worth.

"There's a whole lot of people who have been wanting to pay below market value. We have been in deep negotiations. "I have been a seller every day for the past 18 months , talking to someone about selling the asset. I have seen a real shift in the past three months. There is a realisation that if people don't move now they will look back and see they have missed the bottom of the cycle."

Ms Hutson said more than 40 apartments in the City Beach project had sold to individual buyers in the past couple of months."



So we are getting joy from selling into the bottom of the cycle? I don't think I'd like to hang out with Lisa Allen if this is her definition of joy.

40 apartments sold in the past couple of months eh? At an average price of $400K that would have given us about $16M. $20M at an average price of $500K. Maybe we will get our $58M back? Depending on how much more we've spent on the development.

Anyone know the address of the Main Beach vacant block?

As for the people "wanting to pay below market value" - picked up the Gold Coast Sheraton didn't they? Thanks for putting us in that position King/Hutchings and posse. That one was all your fault. Second mortgage junk. St George was always going to do what they did. Epic fail. But then again how else were you going to sell the thing in the first place at a high enough price so you could book a nice fat profit for the OCV Ltd shareholders. Talk about related party transaction.

 

[seamisty]

Re: Octaviar MFS Premium Income Fund PIF

Thanks Seamisty,
I stand corrected. Please place all IAC names on this post so we are all aware of the current composition of the committee.
With apologies to David,
simgrund

Bronwyn ANDREJIC; Alana WOODFORD;

Chris MANGAN; ARE the three elected IAG representatives. I see they don't take their role very seriously if they are so disinterested in PIF related data that they do not know of the existance of this thread as the main contact point and source of information. Or if they do know of it, they are not participating. Apart from that, the investor input has to pass WC scrutiny before it is passed on to them to pass back to WC on our behalf. :bad:Seamisty

 

[marcom]

Re: Octaviar MFS Premium Income Fund PIF

Jadel, there is also a political perspective which is unfolding in the media today: http://www.smh.com.au/business/howard-pressured-me-on-case-rich-20091118-imjj.html

From the Sydney Morning Herald today "...JODEE RICH has accused the former prime minister John Howard of using his brother, Stan, to pressure him to admit defeat and settle the case the corporate regulator brought against him.

Speaking yesterday after his victory in defending the legal claims that he failed to monitor One.Tel's finances and misled his fellow directors, Mr Rich said Stan Howard telephoned his father, Steven Rich, in June 2001 with a request that he drop his defence to the case.

''The prime minister was sending a message through Stan Howard that it was very important that I settled and didn't defend the case,'' Mr Rich said.

Mr Rich said he believed the prime minister was urged to make the move ''because Kerry [Packer] had an interest in [the case]''.

''My theory all along has been that Kerry really did what he could at the time to stir this up,'' Mr Rich said.

Looks like the ASIC case was a diversion to deflect attention away from Packer and Murdoch. You know how it works ASIC gets a budget increase to fund lengthy legal action, hoping that Rich would fold and settle the case as other One Tel Directors had done.

Now there is a judgement critical of P & M's testimony and the receiver is poised to issue legal action against them for damages.

Talk about Independent Statutory Authorities!

 

[Blueboy1]

Re: Octaviar MFS Premium Income Fund PIF

Here's one from the Shaky Isles

Another finance co calls in receivers
The latest finance company to be put into receivership is Boston Finance; trustees say it is now the most effective option

19 November 2009
Boston Finance has finally been put into receivership.

A moratorium arrangement has been in place since March 2008, but the Trustees Perpetual Trust called in receivers today.

At the time of the moratorium 1,300 investors had $38.5 million tied up in Boston Finance. Since then investors have been repaid $14.24 million, equating to a return of 37 cents in the dollar. The figure includes a distribution of $2.3 million to be made now.

Perpetual Trust spokesman Mathew Lancaster says calling in the receivers is the is now the most effective and efficient option. The trustee and directors of the company say seeking an extension to the moratorium would have resulted in a costly process for investors, with little or no benefit to them.

They say the moratorium has enabled the directors to use their knowledge of the company to maximise recovery of 24 of the original 32 loans and put a strategy in place to maximise the recovery of the remaining eight loans.

There are eight loans to be recovered with a book value net of provisions of $15.85 million. A substantial portion of the dollar value of the loans is subject to High Court litigation.

Boston Finance is a wholly owned subsidiary of the Australian Octaviar (ex MFS) group which is itself in liquidation.

 

[selciper]

Re: Octaviar MFS Premium Income Fund PIF

I would expect the IAC to be represented in a little box within the pages of the next so-called update. There might be five or six Dorothy Dixers. Hope that I'm wrong.

 

[Duped]

Re: Octaviar MFS Premium Income Fund PIF

Here's one from the Shaky Isles

...

Hmmm. Is this a vision of our future?