Wellington Capital PIF/Octaviar (MFS) PIF

Javier · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

They aren't broke yet, they have approx. $170m sitting in their account as we speak. That IS our money. ASIC are the ONLY ones that have the power to freeze those funds NOW. They can then investigate our / WC claim. We need to treat this as a matter of URGENCY. We should really ask JH for her help in this matter, we should ask her in the forums.

I really think this takes priority over a change in RE and all the other biz, which really was not the fault of JH, let her do her job for now and see the long term plan, but really folks, ASIC is the #1 priority.

On their website, I see they have frozen the assets from many of the directors of Fincorp.
http://www.asic.gov.au/asic/asic.ns...sets+of+former+Fincorp+directors?openDocument

They also have open cases on Westpoint and ACR, and they did jail the big boys in HIH, so they do have the power, and DO use it when prompted by enough investors and media. I have got our lawyer to have a look at this avenue as an order of priority. Anything that anybody can think of..let's do it.

sak · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

The proposed 3c distribution, i am wondering will it be treated as income or capital

seamisty · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

There is an article in todays A Financial Review::Investors urged to keep faith with fund
03 Jul 2008 | The Australian Financial Review | Lisa Allen

The managers of the $755 million Premium Income Fund will urge unit holders not to place the stricken entity into liquidation at a series of forums to be held next week. Instead, they will argue unit holders should back the fund for up to five years so they can get their investment back. ::::: I don't have access to the full story.I would be prepared to leave my money in the Fund if I was receiving the equivalent to bank interest and if Wellington Capital was prepared to return any surplus funds( after management fees and fund related expenses were deducted) back to holders as a bonus split pro rata with WC. It is my understanding that surplus money has been returned to the RE previously. Also in the unit price figures mentioned::On 2nd July WC issued a statement to Advisors outlining three options with three estimated values of unit values.
Going Concern full recovery $147 Million - 65 cents
Going Concern No Recovery of $147 Million - 45 cents
Liquidation - 14 cents
There is still no mention of the $50 million Support Facility. OCV is still legally responsible for this outstanding payment to the PIF. These figures are very loose in my opinion. There should also be provision made for Public Indemnity insurance plus there is meant to be a certain amout of insurance with Lloyd's Underwriters. The maximum loss covered by Lloyd's Underwriters policy is 75% of the nominated loan amount or $3 million, whichever is the lesser. As at 30th June 2007, 61.5% of the commercial loan portfolio was insured. Would an AG member please bring this to the attention of JH at one of the meetings. There has been no mention of this to date.Seamisty

BootsnAll · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

We need to do something now.

Selciper, here is an excerpt from ASIC website:

***

Who we regulate
We regulate Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit.

As the corporate regulator, we are responsible for ensuring that company directors and officers carry out their duties honestly, diligently and in the best interests of their company.

As the markets regulator, we assess how effectively authorised financial markets are complying with their legal obligations to operate fair, orderly and transparent markets. We also advise the Minister about authorising new markets.

As the financial services regulator, we license and monitor financial services businesses to ensure that they operate efficiently, honestly and fairly. These businesses typically deal in superannuation,managed funds, shares and company securities,derivatives, and insurance.

A guide to how we work explains what we do, how we approach issues, how we consult with stakeholders and how we are accountable.

Protecting consumers and investors
We have powers to protect consumers against misleading or deceptive and unconscionable conduct affecting all financial products and services,including credit.

***

The inescapable fact is that ASIC has to be goosed into action now.
Below is a link to all the parliamentarians. Click on an individual name to get all their contact details. There is also a form to email them. So, please everyone, as Nike says "Just do it!". We have to make ourselves heard.

http://www.aph.gov.au/house/members/mi-alpha.asp

Jadel · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Dear fellow members i have been asked to send a copy of the adjunct to the original asubmission by several AG members

Unfortunately i simply can not do this ,it has some sensitive material given to me in strict cofidentiality

I will however post the opening appeal of the letter to ASIC

If any person wishes me to remove their name please contact me

We have 37 signatures so far i would like to see 100

The letter will be sent tommorow morning so please contact me ASAP

Dear Sir

COULD YOU PLEASE TREAT THIS MATTER AS URGENT AND IMPORTANT PLEASE! WE DON’T KNOW WHO ELSE WE CAN TURN TO.
We represent a group of people who invested in the Premium Income Fund for capital preservation and regular monthly income and have suffered greatly, both financially and emotionally, as a result of recent events. Most of us are retirees, with no way of replacing the capital we stand to lose as a result of this fund NOT being managed in accordance with its PDS and promotional material . We are not, and were not, highly risk tolerant investors , and we chose this fund because of its alleged security SECURITY.

Today we received the news from Wellington Capital , which company has recently purchased control of the Fund, and has reported that 55% of the Premium Income fund total assets ;in excess of $ 400 million dollars , has been lost from both the unlawful activity and mismanagement of our investment. The repercussions of this tragedy on people’s lives, in the main pensioners and retirees, will be enormous.

We are now making a desperate personal appeal for you to intervene and freeze the assets of Octaviar, the parent company, until those responsible for this disaster can be brought to justice by you.

We have appended all previous correspondence to ASIC officers on this matter for your perusal .PLEAE HELP US

For and on behalf of the Premium Income fund Action Group

Javier · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

I will send you the members I have via email from the Sydney AG to add to your list. Please other states provide your members to Chris. Mate can you please give us your email once again. Let's knock on the door, they are in the Macq Bank building, although that palce is a bit of a fortress!

k.smith · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Jadel, pleases add our names to the list, Breaker and Mary have our details....have also forwarded our fax to Nick Sherry this morning. Surely 11000 investors are entitled to some government intervention!!!!!

Tuart · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Good morning all

I just followed up with the solicitor that Javier has met with and she is preparing a comprehensive file and has done a fair bit of thinking/investigation and discussion within her firm on the form a structure of the incorporated body.

She wishes to attend the Sydney meeting and I hope that Wellington have no issue in this.

Immediately after the forum she believes she will be in a position of having the required information and PIF position to outline potential legal actions and a full understanding of what actions WC have launched or are launching on behalf of the fund.

So in answer to queries on the forum yes progress is happening on formalising the structure.

As Javier pointed out its not time to think about replacing the RE as WC may be the right group at the right time but creating a structure that has a committee of members that can act on the collective behalf will ensure the full detailed position of the fund is received and understood.

You will have to put your faith in your committee to investigate and come to a recommendation about how the work out is managed and the abilities of WC to undertake that task.

You would think that WC would welcome the formation of this body as it creates a committee of members who can be kept informed and idea's bounced off by WC in moving forward.

selciper · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Well, I hope that everyone sharing this thread for information has at least made one phone call to ASIC. NUMBER: 1300 300 360 It's only a short wait to speak to someone. Silence won't get us anywhere. The ASIC guy I spoke to very recently was politely circumspect with very little comment forthcoming. However, my gut feeling was that they weren't in any way closing their eyes to our complaints and opinions. It just COULD be that there is activity we know nothing about. (They are aware of this thread. Hopefully they are reading it, too.)

Agree totally with Javier's newest observations. Seamisty, those were good points you made. These past 24 hours may be the nadir of this hideous saga. It's up to JH to win us over with a combination of facts and 100% sincerity.

.

Jadel · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Thank you for reminding me Javier

I am afraid the old brain cells are deteriorating rapidly with the help of the daily bottles of Shiraz Cabernet to keep the stress levels under control after this debacle unfolded.

My email is chrisaaa@iprimus .com.au

akernst · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

I hope the current RE CEO and Co, have now resigned, as they reassured us last year that the PIF was bullet proof.

After all these months the PIF should be back as before and should have more funds, as they have not paid anything out.

So in this light, the Distributions should now be back in place. Or is the Forum another way of stalling, and making certain
OCV Board members get their losses back.

The Australian economy is BOOMING and will for the next few years courtesy of China and India.
As I have said, once before, if you cannot make big money now, you never will.

The next quote is from the ANZ Bank, on how property is looking:-

THE ANZ Bank says the growing housing shortage is setting Australia up for the "mother of all" housing booms.
New home building figures showing slumping building approvals have sparked fears of a price and rent explosion that will price even more prospective buyers out of the market.
The ANZ's senior economist, Paul Braddick, said yesterday Australia faced a critical and potentially chronic shortage of housing.

DoraNBoots · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Want to let you know that WC and Perpetual have been very co-operative in the last 24 hrs regarding the request for the register. I have been assured and feel confident the solicitor will have it early next week.

Not sure if everyone knows but today is the day WC staff are allowed to release information they previous weren’t allowed to release. So you might find a lot more questions get answered today if you ring the PIF call centre.

I’ve been talking to WC today and one thing of interest is that PWC refused to provide an estimate of unit prices and left it to the board to determine. WC said they would try and let me know why the refusal if possible this afternoon. Is this normal for PWC to do this??

I told WC we want to hire an independent group to look at the books and determine unit prices. They indicated this won’t be a problem.

Thank you Tuart for the feedback about the solicitor re group structure!

Jenny · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

This is the article from today's AFR for those who haven't seen it.

Javier · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Getting an independent audit on the true value of the fund is an excellent idea that Chris has also brought up. That is awesome that JH is cooperating with investors. Well done Dora, I think that it is also in the interest of WC to allow an independent group to carry out that accounting exercise. It goes a hell of a way to her credibility and her ability to carry the ship forward knowing that that a high level of transparency has been availed to investors. It will also give us more figures to present to ASIC.

seamisty · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots said:
Want to let you know that WC and Perpetual have been very co-operative in the last 24 hrs regarding the request for the register. I have been assured and feel confident the solicitor will have a copy early next week.

Not sure if everyone knows but today is the day WC staff are allowed to release information they previous weren’t allowed to release. So you might find a lot more questions get answered today if you ring the PIF call centre.

I’ve been talking to WC today and one thing of interest is that PWC refused to provide an estimate of unit prices and left it to the board to determine. WC said they would try and let me know why the refusal is possible this afternoon. Is this normal for PWC to do this??

I told WC we want to hire an independent group to look at the books and determine unit prices. They indicated this won’t be a problem.

Thank you Tuart for the feedback about the solicitor re group structure!

Thats interesting regarding PriceWaterhousecoopers since it was them that signed off on the PIF annual report 2007. They should be familiar with the structure of the Fund, were they involved with the Dec 31st 2007 report where it was stated quote:::As at 31 December 2007 the Fund had 3 loans in arrears with a total principal
value of $17,199,747. These loans represent 2.20% of the Funds total asset
portfolio as at 31 December 2007. Seamisty

selciper · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

DoraNBoots -

Really appreciate all the hard work you're doing for us. Your updates are a great help during these trying times.
..............................................................................................
PRESS QUOTE: But Ms Hutson last night said that, given time, she was confident of recovering all of the $770 million owed to investors and there were plans to resume paying distributions in October with a total of 3c per unit to be paid by Christmas.

Does this mean that we don't see one cent until December? If that's the case. many of our fellow investors will suffer even greater hardship. Also, if JH thinks it's possible to attain $1 unit value in five years, it would mean a very high rate of return for PIF investments. I hope that she's realistic and right because I'm tiring of the results of gross ineptitude by the last MFS board and others associated with this disgraceful crash.

SPLITPIN · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

As for the Australian Finacial review today

As it goes in QLD, and as Joe used to say about the media;
"Going to feed the Chooks"

It appears JH in QLD has learnt well, don't worry about the poor down and out investors, feed the chooks instead.

And surprise, surprise it also appears a Unit Holders meeting in August.

But wait, there is more for sure.

Thanks to the AG for watching every media outlet in Aust. for the latest revelations and installments before Monday next.

Duped · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:
Thats interesting regarding PriceWaterhousecoopers since it was them that signed off on the PIF annual report 2007. They should be familiar with the structure of the Fund, were they involved with the Dec 31st 2007 report where it was stated quote:::As at 31 December 2007 the Fund had 3 loans in arrears with a total principal
value of $17,199,747. These loans represent 2.20% of the Funds total asset
portfolio as at 31 December 2007. Seamisty

Well said Seamisty. I'm sure they'll have a perfectly rational explanation though. One that would make Yes Minister's Sir Humphrey proud. It'll be full of the likes of credit crunch/squeeze/crisis, unforeseen, unanticipated, different capacity, not in a position. Certainly won't say: we were deceived/lied to. 'This is such a delicate matter Minister, with many alternative positions to consider, some unforeseen, others that we simply cannot be expected to know ....'

Latest Annual report I have is for year to 30 June 07. No mention of $200M debt there. I don't have the 31Dec 07 report. Did PWC note the massive debt and that it breached the PDS?

Duped · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

seamisty said:
...plus there is meant to be a certain amout of insurance with Lloyd's Underwriters. The maximum loss covered by Lloyd's Underwriters policy is 75% of the nominated loan amount or $3 million, whichever is the lesser. As at 30th June 2007, 61.5% of the commercial loan portfolio was insured. Would an AG member please bring this to the attention of JH at one of the meetings. There has been no mention of this to date.Seamisty

I remember that and recall have a close look at the conditions a few years back. Just had a look through my latest PDS (dated 2 July 2007) and couldn't find any reference to it. Has it been cut out of the PDS? It was a big part of the original sales pitch that duped me.

iamspeed · 3 July 2008

Re: Octaviar MFS Premium Income Fund PIF

Duped said:
I remember that and recall have a close look at the conditions a few years back. Just had a look through my latest PDS (dated 2 July 2007) and couldn't find any reference to it. Has it been cut out of the PDS? It was a big part of the original sales pitch that duped me.

Duped

See page 16, half way down right hand column. I also saw this as a positive when I signed up.

I spoke to sonmeone at Octaviar today and they said the recent figures don't account for any Lloyds insurance, so hopefully some upside for us.

Also Livling & Leisure loan valued at lower amount as Packer is trying to back out of the deal. Maybe the guys in Melbourne AG could picket Crown??

Cheers

Wellington Capital PIF/Octaviar (MFS) PIF

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