Wellington Capital PIF/Octaviar (MFS) PIF

Re: Octaviar MFS Premium Income Fund PIF

Nick Nicholls might well have asked Hutson which Brisbane law firm was being employed by PIF for the Feb.12th hearing. Why didn't he do so?
Surely he scans this Forum for necessary background research. Anyway, it's inevitable that in the coming months WC will attract the attention of heavy-hitting financial journalists. Hutson and the "talented team" - for their own sakes - had better be well prepared.

Re: Octaviar MFS Premium Income Fund PIF

Release on the NSX today about the Raptis Group Loan and Sheraton Mirage

http://www.nsxa.com.au/announcements_list.asp?nsxcode=PIN

Text of NSX Release:

"Raptis Group Loan

The Premium Income Fund holds a second ranking mortgage over the assets known as the Sheraton Mirage located on the Gold Coast, Queensland.
In addition, the Premium Income Fund holds a second ranking fixed and floating charge over the assets of the owner of the Sheraton Mirage, SP Hotels Pty Ltd. SP Hotels Pty Ltd is a member of the Raptis group of companies.

St George Bank Limited holds a first ranking mortgage over the Sheraton Mirage and a first ranking fixed and floating charge over the assets of SP Hotels Pty Ltd.

St George Bank Limited in its capacity as mortgagee in possession over the Sheraton Mirage has commenced legal proceedings seeking orders which would enable St George Bank Limited to sell the Sheraton Mirage on an unencumbered basis. The Premium Income Fund is defending these proceedings as is the third mortgagee LJK Nominees Pty Ltd.

The matter is set down for hearing in the Supreme Court of Queensland on 12 February 2010.

Further updates will be provided as the matter progresses."

WC must be monitoring this thread as Duped and Seamisty pointed out there was nothing in the Investor Update about this very matter!

Re: Octaviar MFS Premium Income Fund PIF

WC must be monitoring this thread as Duped and Seamisty pointed out there was nothing in the Investor Update about this very matter![/QUOTE said:

Well here's another one! Selective disclosure by media again - why not tell the investors that another valuable asset has been firesaled!!!!!

Buyer ready to take on project

Kate Bastable | 18th December 2009 Mackay Daily Mercury

THE future of Mackay's Latitude development is looking brighter after a buyer was found for the site.

Mackay’s Latitude development is being sold to a North Queensland buyer, who is believed to be local businessman Rick Shelly. The Brisbane Street site has been embroiled in turmoil since construction began in late 2006, with bankruptcy hitting the builder and the financier of the project.
Tony Martin

THE future of Mackay’s Latitude development is looking brighter after a buyer was found for the site.

The Brisbane Street site has been embroiled in turmoil since construction began in late 2006 with bankruptcy hitting the builder and the financier of the project.

The high-rise development has been at a standstill for many months as liquidators worked through the process of dealing with the bankruptcies and arranging the sale of the site.

However, a spokesperson for Wellington Capital, which was tasked with selling the assets of financier Octaviar to pay creditors, yesterday confirmed the property was under contract.

The contract was now unconditional and would settle in early 2010, the spokesperson said.

The spokesman for Wellington Capital said the buyer had taken possession of the site and was recommencing the project.

He would not reveal the buyer’s name and would only say he was “from North Queensland”.

However, the Daily Mercury understands the buyer is local businessman Rick Shelly.

When contacted by the Daily Mercury yesterday, Mr Shelly said he was unavailable to discuss the matter due to meetings.

Latitude stands half-built at the intersection of Brisbane and Gordon streets, opposite the Sydney Street Markets.

Its construction came to a standstill after its builder Hadcorp went bankrupt and its financier Premium Income Fund, an arm of Octaviar, went under last year.

Hadcorp was wound up by a Brisbane Supreme Court and liquidators were appointed after it was unable to pay sub-contractor Rapid Post Tensioning more than $100,000. In June 2008, weeks after Hadcorp declared bankruptcy, Building Services Authority general manager Ian Jennings said “there were concerns” from the time the footings and foundations were laid.

Financier PIF was taken over by Wellington Capital in May 2008.

The spokesperson for Wellington Capital said the purchaser has been doing some preparation with a view to restarting construction soon.

Latitude was originally approved as an 11-storey development, however, future plans for the site are not known at this stage.

Click to expand...

Re: Octaviar MFS Premium Income Fund PIF

................... for your interest, I have a holding in APN International Property for Income Fund which announced yesterday that it is winding up.

Units are currently at 45.7 cents – I purchased at 1.32. Redemptions are frozen so if I had sold I would have lost 66% of my investment. They have said that 82% of investments will be realised and in my bank account by the end of this month, so it will be very interesting to see what is salvaged. – Could create a benchmark for Wellington!
..............I'll keep you posted.

Re: Octaviar MFS Premium Income Fund PIF

We have been unit holders of PIF since January 2007, in which we deposited all our life savings.
When we put in our redemption on the 20 January 2008, the PIF was frozen a few days later.

Of course since then we have not received any money at all from the PIF.
We did vote for Wellington to take over the fund, but not to go on the NSX.

The facts are the following:-
1. Wellington promised(or indicated) that we will get a 3c distribution by December 2008.
2. Wellington would then pay quarterly distributions.
3. Wellington proceeded with legal actions, to get owing funds from MFS(Octaviar) windup.
4. Public Trustee Queensland won their case, and Octaviar is to be liquidated.
5. Wellington did payoff the $100 million debt facility. With what did they pay this with?
6. Wellington now have the strategy of selling 11 properties and consolidating the other properties.
7. The unit value has gone from 45c down to around 10c, at this point in time.

The following is my conclusions:-
1. Wellington thought that Octaviar would not be completely liquidated, and thus receive around $22 million
from the Deeds of Agreement(which was squashed by the PTQ). This $22 million was going to pay the
3c distribution.
2. Wellington employed several legal firms on behalf of the PIF, but the PTQ(the government) won their
case, and so our PIF will receive an equal slice of the liquidated Octaviar, which will be a few million dollars,
but when. Our PIF has paid for all these legal actions.
3. Wellington is now back to square one, and our fund has no money to pay any 3c distribution or any other
payments.
4. Wellington is paying staff, CEO and administration, from the PIF fund.

Wellington Capital is now proceeding with another legal action about the Mirage Gold Coast sale to Pearl, and
of course another loss, will cause e few more million dollars coming out of our Fund.

From the above facts and conclusions, Wellington Capital, should resign and voluntary hand the PIF to someone
else(Perpetual or a Bank), to manage.
To my way of thinking, Wellington has mis-mangaged our funds, and paid themselves along the way. Nothing given to us.

If Wellington had sent a letter or memo, explaining the situation, and how sorry that things have not panned out
as expected, and giving us some sort of distribution(eg 1cent distribution), then I would be happy and not embark
sending opinions on their questionable performance.

We all make mistakes.

Re: Octaviar MFS Premium Income Fund PIF

lawry1dog said:

We have been unit holders of PIF since January 2007, in which we deposited all our life savings.
When we put in our redemption on the 20 January 2008, the PIF was frozen a few days later.

Of course since then we have not received any money at all from the PIF.
We did vote for Wellington to take over the fund, but not to go on the NSX.

The facts are the following:-
1. Wellington promised(or indicated) that we will get a 3c distribution by December 2008.
2. Wellington would then pay quarterly distributions.
3. Wellington proceeded with legal actions, to get owing funds from MFS(Octaviar) windup.
4. Public Trustee Queensland won their case, and Octaviar is to be liquidated.
5. Wellington did payoff the $100 million debt facility. With what did they pay this with?
6. Wellington now have the strategy of selling 11 properties and consolidating the other properties.
7. The unit value has gone from 45c down to around 10c, at this point in time.

The following is my conclusions:-
1. Wellington thought that Octaviar would not be completely liquidated, and thus receive around $22 million
from the Deeds of Agreement(which was squashed by the PTQ). This $22 million was going to pay the
3c distribution.
2. Wellington employed several legal firms on behalf of the PIF, but the PTQ(the government) won their
case, and so our PIF will receive an equal slice of the liquidated Octaviar, which will be a few million dollars,
but when. Our PIF has paid for all these legal actions.
3. Wellington is now back to square one, and our fund has no money to pay any 3c distribution or any other
payments.
4. Wellington is paying staff, CEO and administration, from the PIF fund.

Wellington Capital is now proceeding with another legal action about the Mirage Gold Coast sale to Pearl, and
of course another loss, will cause e few more million dollars coming out of our Fund.

From the above facts and conclusions, Wellington Capital, should resign and voluntary hand the PIF to someone
else(Perpetual or a Bank), to manage.
To my way of thinking, Wellington has mis-mangaged our funds, and paid themselves along the way. Nothing given to us.

If Wellington had sent a letter or memo, explaining the situation, and how sorry that things have not panned out
as expected, and giving us some sort of distribution(eg 1cent distribution), then I would be happy and not embark
sending opinions on their questionable performance.

We all make mistakes.

Click to expand...

Hi Lawry1dog,

The manager said that members would be paid (1) by taxable distributions, or (2) by tax-deferred capital payments.

You seem disappointed about not getting distributions - why is that?

There is no income, and so applying the formula from the Q & A [Distribution Amount (D) = Income (I ) - fund expenses + Capital (C)] would lead to only a capital payment anyway, and capital is your own money (or part of what is left of it)

I would have thought that you would be happy to note that your manager is not going to pay your capital back to you as taxable income.

..

Re: Octaviar MFS Premium Income Fund PIF

Lawrydog: "We all make mistakes." Hopefully our mistakes don't turn upside down the lives of mostly elderly people. Forgiveness is not the flavour of the month.

Re: Octaviar MFS Premium Income Fund PIF

charles36 The published decision and orders in Federal Court matter Australian Securities and Investments Commission v Koops [2010] FCA 20 (25 January 2010) is available on http://www.austlii.edu.au/au/cases/cth/FCA/2010/20.html

marcom

Re: Octaviar MFS Premium Income Fund PIF

I seem to recall that Jenny Hutson at the Gold Coast meeting in 2008, said, that if she could not make a go of managing the Fund, she would resign and give it to someone else and not take any commissions, etc..

She will not pay any 3c distribution at any time, according to my sources.
And why would she, as she is surviving very nicely on the legal action's
income.

Why cannot a Bank bid for our Fund and pay WC, to put them out of their
misery?
We could then have the great Government deposit guarantee.

Re: Octaviar MFS Premium Income Fund PIF

Thanks Marcom, I have forwarded this information to my action group members. I must say in this instance ASIC has been tremendous and I mean that. They have acted swiftly when provided with certain information from the AG. The receivers in this matter have acted in a very competent manner. No fire sales etc, so refreshingly different to another fund which I have the unfortunate luck to be an investor. The LKM fund debenture holders can expect something in the order of 60 cents. As I posted once before, the fund had a block of town houses,(amongst other projects of course) 19 all told, not finished, money lent to an owner builder, no insurance, sloppy workmanship and all that goes with it, the receivers got stuck in finished the project off, lot of work needed finishing off and had them all sold within six months or so. Why is it so hard for Wellington Capital to actually do something constructive instead of bleating about giving us 3 cents of our own money back. If the RE was going to adopt that strategy why couldn't they be open and say so in the beginning, then we could have considered our vote more carefully. I simply am at lost to understand what is happening to this fund.

Re: Octaviar MFS Premium Income Fund PIF

Charles 36,
Like you, I am baffled by the fund's situation. However, I do suggest - as I have done before - that anybody who hasn't viewed or listened carefully to the words on this YouTube offering should do so.

http://www.youtube.com/watch?v=H60lzsGvAWQ

Re: Octaviar MFS Premium Income Fund PIF

Thank you Selciper, I am now more motivated than ever, it was exhilarating. riveting and dynamic.
Thank you for the information. If ever I can return the favour will you let me know. By the way my audience walked out.

Re: Octaviar MFS Premium Income Fund PIF

Charles36,
Delighted that the video has re-motivated you. The second time I ran the awful thing I listened in vain for words like "commitment", "credibility" and "qualifications", but then deafness may be setting in. I do agree with the motivator, however, that knowing important people is, well, important.

Re: Octaviar MFS Premium Income Fund PIF

selciper said:

Charles36,
Delighted that the video has re-motivated you. The second time I ran the awful thing I listened in vain for words like "commitment", "credibility" and "qualifications", but then deafness may be setting in. I do agree with the motivator, however, that knowing important people is, well, important.

Click to expand...

Curious words indeed, when the lady in question does not communicate with the MOST important people - those that own the fund she is employed to manage!!!

Re: Octaviar MFS Premium Income Fund PIF

selciper said:

Charles 36,
Like you, I am baffled by the fund's situation. However, I do suggest - as I have done before - that anybody who hasn't viewed or listened carefully to the words on this YouTube offering should do so.

http://www.youtube.com/watch?v=H60lzsGvAWQ

Click to expand...

"It is the critic who counts: not the woman who points out how good a doer of deeds she is when those deeds could have been better.
The credit belongs to the woman who is actually in the arena, whose face
is marred by tears of frustration, who strives valiantly to fight for what was so gallantly promised, who complains again and again, because without effort the
errors or shortcomings will go unchallenged!! Not so much with great enthusiasm, but with great devotions, who spends herself for a worthy cause, who, at the best,
knows in the end, the triumph of having tried and who, at the
worst, if she fails, at least she fails while daring greatly, so that her
place shall never be with those cold and timid souls who were not the doers of promised deeds"
Seamisty

Re: Octaviar MFS Premium Income Fund PIF

The following was complaint no one I sent to WC::

I would like to make a formal complaint regarding the late PIF investor update which was due to be released at the end of Dec 2009 as promised by Wellington Capital.

I would also like to know the voting results of the IAC and why approximately six months after the election there has been no report from the IAC committee to unitholders, or will the results and report be included in the overdue update? If not, then I would like this issue lodged as an official complaint also.

Was the 11% voting power of the PIF wholesale fund exercised by WC in the IAC election process? I was distinctly told by WC hotline staff that WC definitely would not be using these votes but would like this clarified by yourself regardless. Has any of the IAC elected representatives provided a contact email to communicate with other investors? If so please provide me with them.

The response I received was totally unsatisfactory and WC stated in all instances that 'no action on our Company's part is warranted' so I sent:::


Thank you for your response to my enquiries.

1. It is stated at the end of page 3 in the PIF Aug 2009 investor update:::The next Investor Update IS DUE TO BE RELEASED AT THE END OF DECEMBER 2009. I do not recall seeing this statement being corrected anywhere to all the other PIF investors who rely only on the three investor updates as their sole source of Fund related information. As such, they would have been anticipating an update to be released to the market at the end of Dec 2009 and subsequently mailed soon after. Are you not aware of the content of your own updates?


I conclude that investors were expecting WC to deliver that update at the end of Dec 2009 as stated in the previous update.


2. Everyone knew which unitholders participated in the voting process for the IAC. WC sent us a list of all the nominees. I did not ask that question. I did however ask if Jenny Hutson using the voting power of the Wholesale Premium Income Fund in relation to the election of the Investor Advisory Committee nominees. In fact I asked twice because I was assured it would not be used by Justine Buckley, a WC staff member.

The reason I made the enquiry initially was because I knew that if Jenny Hutson of Wellington Capital used that voting power it would be a total waste of time nominating because that voting power represented approx 11% of total PIF votes.

Being an IAC nominee I fail to see why the voting results will not be made available if the election process was conducted in a fair and honest manner? Why the secrecy?

I conclude my question remains unanswered.


3. The NSX is not open for investors on Sundays so why would WC release a PIF investor Update that was promised in Dec 2009 to the NSX at 4.22pm Sunday 31st Jan 2010 knowing full well PIF investors would not receive it until the following day Feb 1st?

On the 26th Nov 2009 you wrote:::
Investor Updates are provided for the periods ended April, August and December, and are mailed to investors in the following month. The December update will be release to the market and mailed to investors in January 2010

On Thurs 28th Jan you wrote::
Investor updates are published every four months - April, August and December, and are published during the following month. The December update is due to be released in January, and will be released via the NSX.

I conclude this issue has not been satisfactorily resolved and I accept the offer of periodic discussions between myself and the Companys Managing Director.


Today I received communication from WC which told me if I was not satisfied with the answer I received from WC complaints dept that 'I may refer a copy of my complaint and the supporting material to the Financial Ombudsman Service'

I guess if I had of gone to the Ombudsman first I would have been told to go through the WC complaints dept initially. Interestingly, WC have never once made reference to or answered my many questions regarding the use of the WC PIF wholesale voting power which represents approx 11% of PIF units. Why???? Seamisty

Re: Octaviar MFS Premium Income Fund PIF

charles36 said:

Thank you Selciper, I am now more motivated than ever, it was exhilarating. riveting and dynamic.
Thank you for the information. If ever I can return the favour will you let me know. By the way my audience walked out.

Click to expand...

By the way, have you had a look at the video on that same web page of the "winners" of the debate and see JH prancing around? It is absolutely revolting!

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

I guess if I had of gone to the Ombudsman first I would have been told to go through the WC complaints dept initially. Interestingly, WC have never once made reference to or answered my many questions regarding the use of the WC PIF wholesale voting power which represents approx 11% of PIF units. Why???? Seamisty

Click to expand...

Why? Because there is no point complaining to the very entity you complain about.

How about ASIC?

No harm in shooting off an ecomplaint in parallel to a complaint to the Ombudsman.

..

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:

"It is the critic who counts: not the woman who points out how good a doer of deeds she is when those deeds could have been better.
The credit belongs to the woman who is actually in the arena, whose face
is marred by tears of frustration, who strives valiantly to fight for what was so gallantly promised, who complains again and again, because without effort the
errors or shortcomings will go unchallenged!! Not so much with great enthusiasm, but with great devotions, who spends herself for a worthy cause, who, at the best,
knows in the end, the triumph of having tried and who, at the
worst, if she fails, at least she fails while daring greatly, so that her
place shall never be with those cold and timid souls who were not the doers of promised deeds"
Seamisty

Click to expand...

Hear! Hear! and a great big thank you to the indomitable spirit of that woman! She has great support.

Re: Octaviar MFS Premium Income Fund PIF

Does anyone know how the 3c distribution is going to be paid, i.e. taxable/non taxable