Wellington Capital PIF/Octaviar (MFS) PIF
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Re: Octaviar MFS Premium Income Fund PIF
I have attached the article. Doesn't make for good reading.
I heard a rumour yesterday that the RBOS $ was used to buy out these loans from other people who wanted out. I am sure some of this has ended up in the Maximum Yield Fund No1, which I rasied earlier (first time I heard about this $85 mill Fund was the February update).
What position do Perpetual Trustees have after letting this happen?
How could Guy & Marilyn let this happen? Surely they haven't allowed the money to be lent with no security and no chance of getting a return (atleast something?).
Is this a case for a claim on their PI insurance or do they go straight to jail?
I have attached the article. Doesn't make for good reading.
I heard a rumour yesterday that the RBOS $ was used to buy out these loans from other people who wanted out. I am sure some of this has ended up in the Maximum Yield Fund No1, which I rasied earlier (first time I heard about this $85 mill Fund was the February update).
What position do Perpetual Trustees have after letting this happen?
How could Guy & Marilyn let this happen? Surely they haven't allowed the money to be lent with no security and no chance of getting a return (atleast something?).
Is this a case for a claim on their PI insurance or do they go straight to jail?
Re: Octaviar MFS Premium Income Fund PIF
I'll settle for both, the insurance and jail for all involved in the fraudulent inept handling of the PIF!!!! Regards, Seamisty
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Re: Octaviar MFS Premium Income Fund PIF
On a lighter note! If Richard in Tasi sends key people copies of the finished flyer, and the key people send them out to all AG members...then we could all print out our own flyers to hand out, rather than a few doing the lot; it would be quicker and more efficient.
I, and others, are also wondering......can anyone tell us of other possible options for the PIF to consider outside:
(a)earlier rather than later liquidation of assets, paying us all out, (and starting again.....maybe in a year's time back making mega bucks!!!).
(b) selling units on the NSX (obviously at a % loss)...for those who wish to get their $$ out urgently. (Let's bare in mind that anyone who has money anywhere just about, at the moment, has faced losses, if they sell now, of at least a quarter).
(c) waiting the 360days, hopefully with distributions soon and then deciding what to do.
(d) claiming severe hardship in order to redeem funds.
On a lighter note! If Richard in Tasi sends key people copies of the finished flyer, and the key people send them out to all AG members...then we could all print out our own flyers to hand out, rather than a few doing the lot; it would be quicker and more efficient.
I, and others, are also wondering......can anyone tell us of other possible options for the PIF to consider outside:
(a)earlier rather than later liquidation of assets, paying us all out, (and starting again.....maybe in a year's time back making mega bucks!!!).
(b) selling units on the NSX (obviously at a % loss)...for those who wish to get their $$ out urgently. (Let's bare in mind that anyone who has money anywhere just about, at the moment, has faced losses, if they sell now, of at least a quarter).
(c) waiting the 360days, hopefully with distributions soon and then deciding what to do.
(d) claiming severe hardship in order to redeem funds.
Re: Octaviar MFS Premium Income Fund PIF
Mary
I think we need to understand point c of your question I am sure it was mentioned before that the so call distribution could be a small return of capital
hopefully the meetings will clarify this option.
Mary
I think we need to understand point c of your question I am sure it was mentioned before that the so call distribution could be a small return of capital
hopefully the meetings will clarify this option.
Re: Octaviar MFS Premium Income Fund PIF
Cross off d. Mary. I am in contact with a PIF holder who is terminally ill with cancer who has all the right paperwork to back up her condition and couldn't even get an appointment at MFS/OCV. So even if you are dying this is not considered grounds for early redemption. Regards, Seamisty
Re: Octaviar MFS Premium Income Fund PIF
I'm a unitholder that's just found this site too.
The registration form can be downloaded from www.newpif.com.au - just found this Wellington website while searching for the forum.
Might be a faster way to make sure we are registered.
I'm a unitholder that's just found this site too.
The registration form can be downloaded from www.newpif.com.au - just found this Wellington website while searching for the forum.
Might be a faster way to make sure we are registered.
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Re: Octaviar MFS Premium Income Fund PIF
To Sak,
So as I understand you, you think that, at whatever stage you go to redeem your investment, that you will have whatever amount that you have received in distributions from now, withheld? Otherwise, how does one distinguish this cash from that cash, or capital from distributions....its all just on paper in the end!
To Sak,
So as I understand you, you think that, at whatever stage you go to redeem your investment, that you will have whatever amount that you have received in distributions from now, withheld? Otherwise, how does one distinguish this cash from that cash, or capital from distributions....its all just on paper in the end!
Re: Octaviar MFS Premium Income Fund PIF
Greetings fellow investors
Maybe the fact that JH is taking legal action might end up working in our favor.
Thank you so very much to all of you who are doing so much behind the scenes with your expertise and knowledge of these financial matters. Your time and effort is greatly appreciated.
I look forward to meeting you at the Melb meeting on 8th July.
Mairmy
Greetings fellow investors
Maybe the fact that JH is taking legal action might end up working in our favor.
Thank you so very much to all of you who are doing so much behind the scenes with your expertise and knowledge of these financial matters. Your time and effort is greatly appreciated.
I look forward to meeting you at the Melb meeting on 8th July.
Mairmy
Re: Octaviar MFS Premium Income Fund PIF
The most recent AFR report is truly alarming. I'm getting quite confused. Just how much of our money remains? Where the hell is our "custodian" (Perpetual)? Did they read the PIF constitution? Those signed, optimistic monthly newsletters of the past aren't easily forgotten. I don't think that OCV will ever have the money to pay us back. Hopefully, I'm wrong. Perhaps some better informed investor could explain the present position. It lools horrible to me.
The most recent AFR report is truly alarming. I'm getting quite confused. Just how much of our money remains? Where the hell is our "custodian" (Perpetual)? Did they read the PIF constitution? Those signed, optimistic monthly newsletters of the past aren't easily forgotten. I don't think that OCV will ever have the money to pay us back. Hopefully, I'm wrong. Perhaps some better informed investor could explain the present position. It lools horrible to me.
Re: Octaviar MFS Premium Income Fund PIF
We will need to wait to the meetings to try & understand what WC are actually offering we are coming from many different positions and I am sure none of the investors will be happy with what the final outcome will be,return of capital as close to 100C in the $ in the shortest possible time is something that we can only dream about.I fear that the legals are going to keep this on the boil for many years.
We will need to wait to the meetings to try & understand what WC are actually offering we are coming from many different positions and I am sure none of the investors will be happy with what the final outcome will be,return of capital as close to 100C in the $ in the shortest possible time is something that we can only dream about.I fear that the legals are going to keep this on the boil for many years.
J
Jabula
Guest
Re: Octaviar MFS Premium Income Fund PIF
- It is our view that the proposal of listing the PIF on the NSX should be resisted by all investors.
- No one will buy the PIF shares at a price higher than that reflected by the asset value and the listing will give an opportunity to underhand deals which are not going to favour the current investors.
- The best and only solution is an orderly wind up of the PIF assets accompanied by realistic distributions and redemptions.
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Re: Octaviar MFS Premium Income Fund PIF
This latest Media Release from Wellington Capital is a jaw dropper:
For further information please contact:
Wellington Investment Management Limited
as responsible entity of the Premium Income Fund
Phone: 1300 854 885
Email: jhutson@wellcap.com.au
24 June 2008
Wellington commences proceedings against Octaviar on behalf of Unitholders
Jenny Hutson, Chairperson of Wellington Investment Management Limited, the responsible entity for the
Premium Income Fund said today that the board had commenced proceedings in the Supreme Court of
Queensland against Octaviar Limited, Octaviar Administration Pty Ltd and OPI Pacific Finance Limited.
The Claim has been filed after detailed consideration was given to the issues by the board of Wellington
Investment Management Limited in conjunction with leading silk Matthew Walton SC. $147.5 million in
compensation is being demanded on behalf of unitholders.
The claim specifically relates to contraventions of section 601FD of the Corporations Act by officers of
Octaviar Limited, Octaviar Administration Pty Ltd and OPI Pacific Finance Limited in not carrying out their
duties honestly and with care and diligence, in relation to:
the investment of Premium Income Fund money in related party investments;
participation in loan agreements with related parties; and
compliance with the Australian Financial Services Licence, Constitution and Compliance Plan of
the Premium Income Fund
to ensure that any activities of the Premium Income Fund were undertaken in the best interests of the
members of the Premium Income Fund.
This represents 20 cents in every dollar invested by unitholders. This is a very serious issue. The board is
concerned to ensure that unitholders in the Premium Income Fund have the full benefit of their hard earned
funds.
This claim is in addition to the $50 million claimed in relation to the Support Facility with Octaviar Limited,
which continues to be vigorously pursued by Wellington Investment Management Limited, as responsible
entity for the Premium Income Fund.
Premium Income Fund
Media Release
This latest Media Release from Wellington Capital is a jaw dropper:
For further information please contact:
Wellington Investment Management Limited
as responsible entity of the Premium Income Fund
Phone: 1300 854 885
Email: jhutson@wellcap.com.au
24 June 2008
Wellington commences proceedings against Octaviar on behalf of Unitholders
Jenny Hutson, Chairperson of Wellington Investment Management Limited, the responsible entity for the
Premium Income Fund said today that the board had commenced proceedings in the Supreme Court of
Queensland against Octaviar Limited, Octaviar Administration Pty Ltd and OPI Pacific Finance Limited.
The Claim has been filed after detailed consideration was given to the issues by the board of Wellington
Investment Management Limited in conjunction with leading silk Matthew Walton SC. $147.5 million in
compensation is being demanded on behalf of unitholders.
The claim specifically relates to contraventions of section 601FD of the Corporations Act by officers of
Octaviar Limited, Octaviar Administration Pty Ltd and OPI Pacific Finance Limited in not carrying out their
duties honestly and with care and diligence, in relation to:
the investment of Premium Income Fund money in related party investments;
participation in loan agreements with related parties; and
compliance with the Australian Financial Services Licence, Constitution and Compliance Plan of
the Premium Income Fund
to ensure that any activities of the Premium Income Fund were undertaken in the best interests of the
members of the Premium Income Fund.
This represents 20 cents in every dollar invested by unitholders. This is a very serious issue. The board is
concerned to ensure that unitholders in the Premium Income Fund have the full benefit of their hard earned
funds.
This claim is in addition to the $50 million claimed in relation to the Support Facility with Octaviar Limited,
which continues to be vigorously pursued by Wellington Investment Management Limited, as responsible
entity for the Premium Income Fund.
Premium Income Fund
Media Release
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Re: Octaviar MFS Premium Income Fund PIF
REGARDING REGISTRATION FORMS FOR THE FORUM:
If you feel that mailing the rego forms to Wellington Capital might not get there on time for the 30th June RSVP date you CAN do the following:
SCAN your filled out original of the rego form and then send / email Wellington Capital on: msutter@wellcap.com.au and a Ms. Sutter will process your forms - just forms, no questions.
In the Section "Unit holder names" you can put more than the unit holder, that is, if you want to bring along a partner or relative, just put their names in there as well.
Of course you can fax your completed form to 1300 854 893
REGARDING REGISTRATION FORMS FOR THE FORUM:
If you feel that mailing the rego forms to Wellington Capital might not get there on time for the 30th June RSVP date you CAN do the following:
SCAN your filled out original of the rego form and then send / email Wellington Capital on: msutter@wellcap.com.au and a Ms. Sutter will process your forms - just forms, no questions.
In the Section "Unit holder names" you can put more than the unit holder, that is, if you want to bring along a partner or relative, just put their names in there as well.
Of course you can fax your completed form to 1300 854 893
Re: Octaviar MFS Premium Income Fund PIF
Both Seamisty and Myself have been working on this document for some time calling for a full investigation by ASIC
It is now patently obvious that our worse fears and suspicions have been realised .
We need a major group investor initiative to get ASIC to find out how such a blatant abuse of investors trust could ever be allowed to happen in a supposedly Independant and diversified income Fund
Please contact me personally and i will append your names to the letter
chrisaaa@iprimus.com.au
Letter To ASIC
I have recently made contact with a group of people who have invested in the Premium Income Fund .You will find their names appended to the bottom of this letter
The Premium income Fund declared purpose was to provide a secure monthly income for investors who are in the main superannuation funds and retirees.We believe that this risk profile has been greatly abused . Our common goal now is to try to understand why an Income Fund that allegedly had a balanced and diversified structure in order to protect investors Capital has been ruined
As you are aware we were of the opinion that the loan to Living And Leisure had been made prior to the 31st December 2007
It was inconceivable to us that an ASX listed Company would make a significant business loan whilst at the same time being in breach of the terms of a 184million loan to Royal Bank of Scotland, whereby that debt was repayable on demand after 31st December2007.
Subsequently to the above event it appears that the PIF continued to advance funds to living and leisure (from borrowed money ) in the form of an unsecured second Mortgauge after that company was in default of a $123 million First morgagee senior loan to NAB . This is a clear violation of Company law.
In any event the provision in the PIF PDS states specifically that this loan facility can only be used for SHORT TERM FUNDING for OPPORTUNISTIC DEVELOPMENTS also it claims that all COMMERCIAL loans have been secured by a FIRST MORTGAUGE over property
We believe that the the OCV ,PIF responsible entity have flagrantly abused these guidelines , exposing investors in our fund to unjustifiable risks by continuing to make an unsecured loan to a Company that was TECHNICALLY INSOLVENT.
This reckless action has now brought the PIF to the brink of collapse and resulted in large capital losses for investors .WE consider their is considerable evidence to prove that OCV have in fact used the PIF as a de facto bank in order to save an associated OCV entity from defaulting on in debts ,whilst itself under the burden of a massive financial liability from the Royal Bank Of Scotland..
The sequelae of events as is as follows
1/ September 2007 living and leisure defaults on bank loan to National Australia Bank
2/ Diecember 31st 2008 PIF breaches RBOS covenant 184 million payable on demand .Investors totally unaware of this debt., or its purpose
3/ January 2008 OCV announces it needs$550million dollars to pay off debts shares suspended from trading on ASX
4/ 13th January 2008 January ASX suspends Living and Leisure for failing to provide audited accounts .
5/ February 2008 PIF investors advised that all redemption requests will be frozen
6/ March 19th 2008 Price Waterehouse and Coopers states OCV related entities are unable to repay debt and there is material uncertainty as to whether The PIF can remain a going concern after examining the half yearly accounts, Investors first informed of 184million debt to RBOS
7 / May 2008 NAB threatens to Size Living and Leisure assets unless OCV pays 40 million loan Guarantee on Senior secured loan of 123 million dollars
8/ May 2008 PIF forced to sell unsecured living and leisure loan of 67 million dollars to Arctic Capital resulting in large capital loss to investors
9/ May 2008 Continued sale of PIF assets at fire sale prices to repay RBOS debt resulting in large capital loss to investors
10/ May 2008 sale of the PIF to Wellington Capital in order to prevent imminent seizure of OCV and PIF assets by creditors
Let us now examine now examine the likely scenario .based on the above events. . If Living and leisure defaults on its loan commitments their is a an immediate $40 million guarantee payable by the parent company OCV to the National Austrialia bank .That can not be allowed to happen as OCV does not have the money to repay that debt
However the problem can be solved by simply borrowing from the Royal Bank of Scotland through the Premium Income fund and loaning that money to Living and leisure, until order is restored to the firmament . The problem was, the PIF was at its extreme limits having breached the RBOS Covenant.. And Living and Leisure was terminally bankrupt.
The risk was therefore effectively transferred to the PIF and its poor naïve investors .Unfortunately like changing the deck chairs on the Titanic the end result was also entirely predictable.
Given this state of affairs we find it difficult to understand how the OCV PIF has acted responsibly and within risk parameters outlined for our fund in the PDS
We would therefore respectfully request a full and urgent investigation into these events to determine if this ill conceived scheme could ever be construed as being made in the best financial interests of PIF investors.
And whether or not a breach of ASX guidelines , Failure to disclose,conflict of interst and related party transaction.has occurred.
Both Seamisty and Myself have been working on this document for some time calling for a full investigation by ASIC
It is now patently obvious that our worse fears and suspicions have been realised .
We need a major group investor initiative to get ASIC to find out how such a blatant abuse of investors trust could ever be allowed to happen in a supposedly Independant and diversified income Fund
Please contact me personally and i will append your names to the letter
chrisaaa@iprimus.com.au
Letter To ASIC
I have recently made contact with a group of people who have invested in the Premium Income Fund .You will find their names appended to the bottom of this letter
The Premium income Fund declared purpose was to provide a secure monthly income for investors who are in the main superannuation funds and retirees.We believe that this risk profile has been greatly abused . Our common goal now is to try to understand why an Income Fund that allegedly had a balanced and diversified structure in order to protect investors Capital has been ruined
As you are aware we were of the opinion that the loan to Living And Leisure had been made prior to the 31st December 2007
It was inconceivable to us that an ASX listed Company would make a significant business loan whilst at the same time being in breach of the terms of a 184million loan to Royal Bank of Scotland, whereby that debt was repayable on demand after 31st December2007.
Subsequently to the above event it appears that the PIF continued to advance funds to living and leisure (from borrowed money ) in the form of an unsecured second Mortgauge after that company was in default of a $123 million First morgagee senior loan to NAB . This is a clear violation of Company law.
In any event the provision in the PIF PDS states specifically that this loan facility can only be used for SHORT TERM FUNDING for OPPORTUNISTIC DEVELOPMENTS also it claims that all COMMERCIAL loans have been secured by a FIRST MORTGAUGE over property
We believe that the the OCV ,PIF responsible entity have flagrantly abused these guidelines , exposing investors in our fund to unjustifiable risks by continuing to make an unsecured loan to a Company that was TECHNICALLY INSOLVENT.
This reckless action has now brought the PIF to the brink of collapse and resulted in large capital losses for investors .WE consider their is considerable evidence to prove that OCV have in fact used the PIF as a de facto bank in order to save an associated OCV entity from defaulting on in debts ,whilst itself under the burden of a massive financial liability from the Royal Bank Of Scotland..
The sequelae of events as is as follows
1/ September 2007 living and leisure defaults on bank loan to National Australia Bank
2/ Diecember 31st 2008 PIF breaches RBOS covenant 184 million payable on demand .Investors totally unaware of this debt., or its purpose
3/ January 2008 OCV announces it needs$550million dollars to pay off debts shares suspended from trading on ASX
4/ 13th January 2008 January ASX suspends Living and Leisure for failing to provide audited accounts .
5/ February 2008 PIF investors advised that all redemption requests will be frozen
6/ March 19th 2008 Price Waterehouse and Coopers states OCV related entities are unable to repay debt and there is material uncertainty as to whether The PIF can remain a going concern after examining the half yearly accounts, Investors first informed of 184million debt to RBOS
7 / May 2008 NAB threatens to Size Living and Leisure assets unless OCV pays 40 million loan Guarantee on Senior secured loan of 123 million dollars
8/ May 2008 PIF forced to sell unsecured living and leisure loan of 67 million dollars to Arctic Capital resulting in large capital loss to investors
9/ May 2008 Continued sale of PIF assets at fire sale prices to repay RBOS debt resulting in large capital loss to investors
10/ May 2008 sale of the PIF to Wellington Capital in order to prevent imminent seizure of OCV and PIF assets by creditors
Let us now examine now examine the likely scenario .based on the above events. . If Living and leisure defaults on its loan commitments their is a an immediate $40 million guarantee payable by the parent company OCV to the National Austrialia bank .That can not be allowed to happen as OCV does not have the money to repay that debt
However the problem can be solved by simply borrowing from the Royal Bank of Scotland through the Premium Income fund and loaning that money to Living and leisure, until order is restored to the firmament . The problem was, the PIF was at its extreme limits having breached the RBOS Covenant.. And Living and Leisure was terminally bankrupt.
The risk was therefore effectively transferred to the PIF and its poor naïve investors .Unfortunately like changing the deck chairs on the Titanic the end result was also entirely predictable.
Given this state of affairs we find it difficult to understand how the OCV PIF has acted responsibly and within risk parameters outlined for our fund in the PDS
We would therefore respectfully request a full and urgent investigation into these events to determine if this ill conceived scheme could ever be construed as being made in the best financial interests of PIF investors.
And whether or not a breach of ASX guidelines , Failure to disclose,conflict of interst and related party transaction.has occurred.
Re: Octaviar MFS Premium Income Fund PIF
After reading the latest reports and newspaper articles I am still in disbelief that these Directors and board members are'nt facing criminal charges.
These BAS##### will get away with this once again the investors will loose money and the directors and board members will come out of this mess clean and maybe richer. I bet they got there money out before anyone elses.
Again why are ASIC not doing anything.
After reading the latest reports and newspaper articles I am still in disbelief that these Directors and board members are'nt facing criminal charges.
These BAS##### will get away with this once again the investors will loose money and the directors and board members will come out of this mess clean and maybe richer. I bet they got there money out before anyone elses.
Again why are ASIC not doing anything.
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Re: Octaviar MFS Premium Income Fund PIF
I would have thought that the RE (i.e. MFSIM) by definition, was 'responsible' and therefore liable for the $147.5 million of bad loans to MFS Ltd. Shouldn't WC be launching legal action against MFSIM and not MFS Ltd?
How do you force someone to handover $147.5 million, threaten their family?, hold a gun to their head?? Jenny, please explain!
"Wellington is claiming the Gold Coast financial and tourism group forced its fund to acquire a package of loans without any security.
"It's a breach of the Corporations Act,of the product disclosure statement, the PIF constitution, the compliance plan - this is not how this fund was meant to run," Wellington director Jenny Hutson told The Australian Financial Review yesterday."
I would have thought that the RE (i.e. MFSIM) by definition, was 'responsible' and therefore liable for the $147.5 million of bad loans to MFS Ltd. Shouldn't WC be launching legal action against MFSIM and not MFS Ltd?
How do you force someone to handover $147.5 million, threaten their family?, hold a gun to their head?? Jenny, please explain!
"Wellington is claiming the Gold Coast financial and tourism group forced its fund to acquire a package of loans without any security.
"It's a breach of the Corporations Act,of the product disclosure statement, the PIF constitution, the compliance plan - this is not how this fund was meant to run," Wellington director Jenny Hutson told The Australian Financial Review yesterday."
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Re: Octaviar MFS Premium Income Fund PIF
This from Crikey today:
"Crikey spoke with ASIC today, who noted that no formal investigation has yet been announced into MFS/Octaviar/PIF or anyone else involved in the almighty mess."
This from Crikey today:
"Crikey spoke with ASIC today, who noted that no formal investigation has yet been announced into MFS/Octaviar/PIF or anyone else involved in the almighty mess."
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Re: Octaviar MFS Premium Income Fund PIF
Breaker1,
"Wellington Capital proceeds against Octaviar on behalf of unitholders"
I too, read this release earlier today. It kind of takes most of the wind out of our sails for the moment. I would imagine now, all withdrawals from the fund would be fully frozen, as a true unit value could not be calculated until all retrievable monies were returned to it.
This however, should not prevent the Fund from starting to pay dividends again, after the debt to RBOS is finalised. Income from normal Fund investments, would then begin to build up to allow this.
I am also beginning to wonder if the listing of the Fund on the NFS, may come down to a vote between two developing factions of unitholders.
I have come to hear a lot of desperate stories of late.
Perhaps after attending the meetings to hear exactly what choices are currently now on offer, and the reasoning behind them, we will know better what decisions to aim our fight against or for.
Cheers to all.
Breaker1,
"Wellington Capital proceeds against Octaviar on behalf of unitholders"
I too, read this release earlier today. It kind of takes most of the wind out of our sails for the moment. I would imagine now, all withdrawals from the fund would be fully frozen, as a true unit value could not be calculated until all retrievable monies were returned to it.
This however, should not prevent the Fund from starting to pay dividends again, after the debt to RBOS is finalised. Income from normal Fund investments, would then begin to build up to allow this.
I am also beginning to wonder if the listing of the Fund on the NFS, may come down to a vote between two developing factions of unitholders.
I have come to hear a lot of desperate stories of late.
Perhaps after attending the meetings to hear exactly what choices are currently now on offer, and the reasoning behind them, we will know better what decisions to aim our fight against or for.
Cheers to all.
