Wellington Capital PIF/Octaviar (MFS) PIF

Class Action directions hearing tomorrow::

01-Jul-2010 9:30 Directions Justice Perram Court Room 18C

LOL! ... and then - Oh dear, more potentially misleading information. Scott Rochfort in today's SMH

http://www.smh.com.au/business/board-overboard-for-us-masters-cleanout-20100701-zqo2.html



"BYRNE NOTICE
...

To drive home the point, Hutson included another reason for unit holders to think twice before accepting any takeover bid. Hutson's Wellington Capital is entitled to a ''removal fee'' of 2 per cent of the gross value of the fund. Based on current valuations, Wellington would be entitled to a $5.3 million payout. Unit holders approved the inclusion of the removal fee in the fund's constitution when Wellington became the responsible entity in 2008."

Makes us look like we need to be taught a lesson doesn't it. Rochfort (or the SMH editor) recklessly fails to include that Hutson slipped the "removal fee" into the package of amendments that she sold to us under the premise of saving the fund from immediate liquidation at 14c per unit.

"STILL TWITCHING Hutson has also continued to keep another of the nearly burnt-out former MFS funds she runs alive, to the chagrin of some investors.
Wellington managed to pass a resolution at a unit holder meeting on Wednesday to extend the life of the former MFS-run Premium Yield Fund for another two years.
This is despite the Premium Yield Fund - which continues to provide a small amount of fees to Wellington - being valued at a measly $448,935, according to its most recent accounts. Wellington has argued that there is a chance the fund could get some cash flows from the litigation the fund manager has afoot. ..."

Premium Income Fund
NSX Release: 2 July 2010
REJECT TAKEOVER OFFER
FOR PREMIUM INCOME FUND UNITS MADE BY ALF PIF FINANCE LIMITED
Despatch of Target’s Statement
On 15 June 2010 ALF PIF Finance Limited lodged a replacement Bidder’s Statement in relation to its
takeover offer for all of the units in the Premium Income Fund.
Wellington Capital Limited as responsible entity of the Premium Income Fund confirms that the Target’s
Statement was sent to all Premium Income Fund unitholders by post today in accordance with section 633(1)
of the Corporations Act 2001 (Cth).
The Target’s Statement outlines the reasons for the Directors’ recommendation that the takeover offer be
rejected.
The Wellington Capital Board unanimously recommends that Unitholders reject this offer by simply
ignoring all communications received from the Bidder.


What a total waste of our money again!! Seamisty

My fashion advice to Hutson following Rochfort's tongue-in-cheek description of her trademark outfit is "dump that infuriating KMart red jacket!" The media are going to have fun with it.

first timer with a few questions

Hello everyone. I have been following his board for short while and some people seem to have a pretty good knowledge - or am I still that gullable person that thought PIF was a good investment? LOL.

I have joined the class action and one question I have is this: If by some amazing feat the price of the PIF rose to the magical 45cent mark as we were promised it would, and I decided that was good enough for me and sold my lot; would that effectively cancel any ability to recoup my 55 cent loss through the class action? In short, do you have to stay in the fund in order to get paid out if the class action were to be successful?

Thanks.

Re: first timer with a few questions

ACB said:

Hello everyone. I have been following his board for short while and some people seem to have a pretty good knowledge - or am I still that gullable person that thought PIF was a good investment? LOL.

I have joined the class action and one question I have is this: If by some amazing feat the price of the PIF rose to the magical 45cent mark as we were promised it would, and I decided that was good enough for me and sold my lot; would that effectively cancel any ability to recoup my 55 cent loss through the class action? In short, do you have to stay in the fund in order to get paid out if the class action were to be successful?

Thanks.:/QUOTE]ACB, welcome to the thread which has become a bit anorexic of late. It is my understanding that if you are a participant in the Class Action, that in the event that you sell your units, any money recovered would be distributed amongst the PIF investors who held units when MFS/OCV collapsed(not those who have bought on the NSX since WC took over).


I think in the event that any money is repatriated back to the PIF from any ASIC (yawn yawn) intervention, only PIF investors holding units at that time would participate in the possible upside of the FUND having access to some money being returned. ( One can only hope the current inept (or equivalent) RE is no longer in control. My own personal opinion is that if this is the case, the original PIF unit holders who were forced to sell will be further disadvantaged. I did raise this question with ASIC but like 99% of my previous correspondence, (as with Wellington Capital) it has been ignored or gone unanswered. Hope this helps but is just my own interpretation/opinion.


Re the original Wellington Capital 45cent unit value, their team of experienced professionals under the leadership of Jennifer Hutson are responsible for us losing a further 10cents per unit through their business expertise.
Seamisty

Click to expand...

Its 'encouraging' to see more victims of failed financial schemes taking legal action against those responsible for losses, bad management etc.

Investors burned by the collapse of Melbourne-based brokerage Sonray Capital Markets have approached law firm Slater and Gordon to consider possible legal action and today law firm Levitt Robinson filed a Statement of Claim in the Federal Court in Sydney, commencing a class action against the Commonwealth Bank on behalf of Storm Financial investors.


It sends a clear message to all those responsible for investors funds, if you don't do the right thing, you will be held accountable and thoroughly investigated!! Those proved to have been negligent or dishonest etc will be exposed and held accountable. (eventually!!!)

BRING IT ON!!!! Seamisty

Please refer to this link:- http://www.officialwire.com/main.php?action=posted_news&rid=170801

Irw-Press: Alf Group Holdings Ag: Alf Group Holdings Ag – Another Major Distressed Property Acquisition And Successful Capital Raising
Published on July 02, 2010

by Press Office

(IRW-Press and OfficialWire)

VIENNA, AUSTRIA

Re-Tweet this article

Alf Group Holdings Ag – Another Major Distressed Property Acquisition and Successful Capital Raising
Sydney, Australia 28th June 2010 - Alf Group Holdings Ag (AG1) is pleased to confirm the following company update:
Major Distressed Property Acquisition
On Friday 25 June, a wholly owned subsidiary of AG1, ALF Property 2 Pty Ltd, finalized the exchange of signed sales contracts for the acquisition of a major home unit development site and marina on Queensland’s Hope Island. The property was acquired after the owner defaulted on a mortgage held on the property.
The Property has a right under the existing government legislation to submit and obtain approval for the development of 143 x 2 bedroom apartments and 43 Marina berths.
The existing owner failed to meet the financial obligations to the existing architects regarding the payment of outstanding fees of approximately $100,000 AUD. ALF Property 2 Pty Ltd will, after due consideration and review, pay these fees and lodge the relevant development application.
The value of the approved site is determined by the apartment yield and the marina berth yield. AG1 believes that the post approval (pre construction) value of the land is over $12m AUD. ALF Property 2 Pty Ltd has entered into the contract to purchase at a price of $4.5m AUD.
The Directors believe that on completion and sale this project will yield a total EBIT of $27M AUD which is expected to be achieved in 2011.
Planned Expansion
During July 2010, AG1 are meeting with German law firms to discuss the establishment of a German subsidiary to:
- undertake litigation funding opportunities in Germany and
- to investigate opportunities and if appropriate to acquire distressed property assets in Germany.
In addition to the above, AG1 wish to advise that the company is reviewing a number of opportunities regarding the potential acquisition of distressed mortgages and distressed large residential apartment complexes in the USA that are currently over indebted.
ALF PIF Finance Limited Takeover Bid
The ALF PIF Finance Limited offer to acquire all the units in the distressed mortgage fund, the Premium Income Fund, which AG1 announced on the 17th May 2010 is now ready to print and despatch to all of the current 10,744 investors. The board of directors are expecting the documents to be posted on 7 July 2010.
Successful Capital Raising
In the last 2 weeks, AG1 has placed a total of 26m shares to high net worth individuals and institutional investors.
About Alf Group Holdings Ag
Alf Group Holdings Ag (AG1) currently owns 50% of one of Australia’s largest litigation funders which also provides corporate restructuring services, funding and debt and equity solutions. It is also an acquirer of distressed assets.
The Directors of AG1 have announced their intention to exercise the option to acquire the remaining 50% of ALF that it does not own. This is expected to be completed before the EGM, details of which will be announced at the appropriate time.
For further information please contact:
Alf Group Holdings Ag
Level 29, Chifley Tower
2 Chifley Square
Sydney, NSW 2000
Australia
Telephone +61-2-9293-2500
Fax +61-2-9293-2930
Website: www.cancanholdings.com
eMail: info@publiceye-consulting.com

Regards,
Blueboy1

The biggest worry as I see it, is that although ALF's "prospectus" is somewhat naive, so are many of our shareholders. The danger is that they may accept it as a way out!!!

JohnH said:

The biggest worry as I see it, is that although ALF's "prospectus" is somewhat naive, so are many of our shareholders. The danger is that they may accept it as a way out!!!

Click to expand...

Exactly JohnH, and 32 pages at our expense of 'reject all offers' which could have been condensed to 5 pages hardly inspires the thousands of already totally pissed off and over Wellington Capital management PIF investors suffering a further 10cent unit value loss credited to Wellington Capital and no sign of the 2008 promised 3 cent payment to offer any future commitment to Jenny Hutson and her staff. Does our fund radiate a signal to all potential/current parasites 'to pick me' because someone thinks we are an easy target? You bet it does, ALF PIF would not be the only ones circling the carcass. What is holding them back? Maybe they are smarter than ALF PIF and know that PIF investors have genuine complex legal grounds which extend beyond Wellington Capital and could well include Wellington Capitals aquisition of the RE rights to the fund as has been indicated by PTQ and pending litigation from PIF asset developers. There is also the question of the dispersal of some of the PIF assets by WC which needs to be dealt with.
Any wonder PIF investors have lost faith in ASIC and other regulatory bodies? Thay have demonstrated they are next to useless to date and have cost us millions by procrastinating and not intervening on our behalf sooner. I feel confident that we will see justice eventually but at what cost? I do not blame those who have written this fund off and given up. I like many others hold our current RE, Wellington Capital along with past managment, responsible for our current predicament.

Seamisty

ACB

You do not have to stay in the fund to be included in the Class Action , provided you were an original investor.

We have about as much chance of our units reaching 45cents on the NSX as the Dinosaurs had when the an Asteroid hit the earth 60 million yeas ago .

So I do not think you should worry about that eventuality

There is a far greater possibility( as Seamisty has pointed out) of the potential legal ramifications to individual investors in the event a particular Class Action is successful by a Developer against Wellington Capital.

Wellington Capital's acquisition of the RE rights may well be a smoking gun...anyrhing to do with WC appears to be horribly complex and expensive. And it's doubtful that the PTQ would be inclined to waste their time if they thought their arguments were unsound.

Jadel said:

ACB


There is a far greater possibility( as Seamisty has pointed out) of the potential legal ramifications to individual investors in the event a particular Class Action is successful by a Developer against Wellington Capital.

Click to expand...

Would you please clarify what you mean as the PIF constitution says otherwise.



Part 27.

Sarah Davies of McMahon Clarke lawyers says:
“If a managed investment scheme is wound up because it is insolvent, then it is likely the
members of the scheme will be called on by the liquidator to make a contribution towards
the debts owing to creditors. Disgruntled members may then seek to recover their losses
from the Responsible Entity (RE), particularly if there are circumstances that suggest the
RE could have prevented the insolvency from arising. An RE has duties imposed on it by
the Corporations Act (the Act) and by the general law. Those duties are wide enough to
expose an RE to potential liability if a scheme becomes insolvent.”

CA:

03-Aug-2010
10:15
Notice of Motion
Justice Perram

Here's another example of how little YOUR government cares about YOU (and me) as PIF investors.

Ask yourself: would you have invested in PIF without all the Federal Government branding (AFS licences, PDS) and perceived 'protections' (Corporations Act, ASIC)?

So why is it that we've been denied effective Federal Government action. With the top level of feedback so far, from the treasurer himself, being "[FONT=&quot] ... didn't have the security that an investment in a APRA regulated institution would have BECAUSE THEY WERE LOOKING FOR HIGHER RETURNS and sadly the worst has happened. … BUT THERE IS NOTHING THE AUSTRALIAN GOVERNMENT CAN DO FOR THOSE PEOPLE who unfortunately lost their money ...[/FONT]". I.e. we were greedy. Really, then what about the Macquarie group?

Read this Age article remembering that MFS was touted as a Macquarie wannabe. Both paid dividends from borrowed money.

http://www.theage.com.au/business/revealed-macbanks-code-red-to-the-government-20100516-v6cp.html

and this

http://www.theage.com.au/business/the-brains-behind-macbanks-bonanza-20100530-wnka.html "HIS name is Ben Brazil and he is the banker using your AAA-taxpayer credit rating to make millions for Macquarie Group and fuel the bonuses of its bankers." (Hmmm, are the last 4 letters of that html link deliberate?)

Why is the Federal Government helping Macquarie while sitting on it's hands as all 10 thousand of us suffer? Flapping around desparately in the bottom of that tinny of an exchange, NSX, at 25% of a PwC audited value. Left vulnerable, by WC, to be skewered and gutted by the likes of ALF PIF. (How much is this ALF PIF takeover push costing us?)

Are we just grist for the 'big end of town tax revenue generating' mill? PIF effectively just being a Federal government promoted pump and dump. Or perhaps this a NSW over QLD thing?

Further to my point in post #5855 that OUR Commomwealth Government (including their commissions) is deeply involved and complicit in the PUMP & DUMP of PIF.

Have a look at the new FIDO (ASIC) page about Unlisted Investments:
http://www.fido.gov.au/fido/fido.nsf/byHeadline/Unlisted%20investments

After years of pumping up the value of its AFS licencing regime, the Commonwealth Government (through its commission ASIC) is simultaneously, quietly on the back pages, trying to back away from it. Here it is, published in black and white.

"Do you need advice?
Take your time and think things over before you invest. Get professional advice from a licenced financial adviser if you’re not sure what to do.

If your financial adviser recommends that you invest in an unlisted investment, make sure you ask questions about this recommendation.

• How does this product fit into your overall financial plan and how will it help you achieve what you want?
• Do you understand the risks associated with this type of investment?
• Do you know exactly what the investment product will do with your money?
• Could you explain the business model of the mortgage fund to a friend or colleague?"

WHAT!!!!!!!

That's the ONLY REASON we go to financial planners AT ALL.THEY'RE THE EXACT QUESTIONS A FINANCIAL PLANNER IS SUPPOSED TO ANSWER.

EPIC FAIL

FAIL

FAIL

FAIL

When we go to a GP with a chest cold and get handed a prescription for an antibiotic we fill the prescription and follow the doctors instructions. It's the doctors responsibility to make sure its not viral or worse, cancer. That's exactly what the service the doctor is paid to provide.

When we pay an electrician to put in a new power point we don't grill them on whether it's on the right circuit, if they tightened the screws, if its earthed etc. It's the electrician's responsibility. That's exactly what the service the electrician is paid to provide.

Do I need more examples? I've heaps.

If anybody didn’t reach page 24 of the PIF June 30 “Investor Update” because of its size, they should do so. The ensuing Page 25 is not inspirational either. I read the material on the PIF website, PDF format.

'Notorious' Byrnes foiled by eagle-eye judge
ELISABETH SEXTON
July 8, 2010
A NSW Supreme Court judge has uncovered a scheme by the ''notorious'' Sydney businessman Jim Byrnes to deprive a collapsed company's creditors of $500,000 in car-servicing assets.

Full article: http://www.smh.com.au/business/notorious-byrnes-foiled-by-eagleeye-judge-20100707-100nm.html

SMH Article 8/7/10 as above with photos.