Wellington Capital PIF/Octaviar (MFS) PIF

I got it emailed to me::
Issue of Units
Notice under Section 708A(5)(e) of Corporations Act 2001 (Cth)
!
Wellington Capital Limited as responsible entity of the Premium Income Fund refers to the placement of
113,000,000 fully paid ordinary units (‘Placement Units’) at $0.10 per unit, raising $11.3 million. Allotment
of the units is anticipated to occur by 13 May 2011.
In making this placement, Wellington Capital Limited as responsible entity of the Premium Income Fund
relies on section 708A(5) of the Corporations Act 2001 (Cth) (‘Act’) and gives notice under section
708A(5)(e) of the Act of the following details:
1. The Fund is issuing the Placement Units without disclosure to investors under Part 6D.2 of the Act;
2. As at the date of this notice, the Fund has complied with:
(a) The provisions of Chapter 2M of the Act as they apply to the Fund; and
(b) Section 674 of the Act; and
3. As at the date of this notice, there is no excluded information (as defined in section 708A(7) or
708A(8) of the Act) which is required to be disclosed by the Fund.

targav 8 said:

Same here, can i sell a block of land and claim capital loss on my wellington holdings?

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I pretty sure you can targav 8. See http://www.ato.gov.au/corporate/content.aspx?menuid=0&doc=/content/00208572.htm&page=10#P257_23599

I made a good capital gain in the 2006-2007 financial year. If only I'd waited another week to sell that asset. The CG would have occured in the 2007-2008 financial year. I.e. the year that PIF's woes were revealed. I might have been able to negate the CG be selling a handful of PIN units off market. Whether I got 45c or 10c off market wouldn't have made a difference because I could have always bought back into PIF @ 10c. (Surely the ATO's 'wash transaction' laws don't mean I can never buy back into a company that had previously delivered me a Capital Loss.)

It just could be that the publication of a photo of JH in today's SMH story about the capital raising, may signal an increasing interest in our situation. Let's hope that they (the media) will also follow the G8 Singapore judicial fireworks to come.

Hot of the press, the news we have all been waiting for!! (Castlereagh Capital Limited is a newly formed subsidiary fund management service of Bri Ferrier) Plenty more to come I am sure!! Seamisty

Unitholders ask ASIC/NSX to ban cap raising
Monday, 9 May 2011 1:00pm

By Elise Burgess | In Investment
Premium Income Fund unitholders have requested regulatory bodies stop a planned capital raising, deeming the raising as 'unfair' to all unitholders.

In a letter to the Australian Securities and Investments Commission (ASIC) and National Stock Exchange (NSX), the PIF Action Group, of which around 27 per cent of all fund unitholders are part of, said they believe the planned capital raising is in breach of the Corporations Act, the Scheme Constitution, NSX Listing Rules and not in the interests of Unitholders.

The raising, announced on May 6 by Wellington Capital, the responsible entity of the Premium Income Fund (PIF), is a placement of 113 million units at 10 cents to raise $11.3 million, which is equal to 14.97 per cent of units currently on issue.

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Continued: http://www.financialstandard.com.au/news/view/8445443

Thank you, AG - on the ball as usual.

Thank you Seamisty, please continue to keep your eye on the press. More to come. Interesting times ahead. Charles36

Good work team! Much appreciated!!!

charles36 & breaker, Thankyou. I know you have both put a lot of effort into getting a better outcome for all PIF investors. I can't wait to see the backside of that bitch and the witches coven (or what ever religious group they call themselves) that currently administers our fund.

Thanks to all that have worked so hard on the AG..

I believe that any move by "new money" that dilutes the interests of investors that are victims of mortgage funds that have been used, abused, frozen, illiquid...etc... is not in the best interests of all unitholders...

k.smith said:

Thanks to all that have worked so hard on the AG..

I believe that any move by "new money" that dilutes the interests of investors that are victims of mortgage funds that have been used, abused, frozen, illiquid...etc... is not in the best interests of all unitholders...

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k.smith the 'new money' was never about the best interests of unitholders, it was about the best interests of a panicked Responsible Entity knowing full well just how unpopular they are with the existing unit holders. It is all about the VOTING POWER!! WC know that without a certain amount of control over voting percentage they don't have a **** show in hell of staying on board as RE. This has nothing to do with value adding 3 vacant plots of ground, rather an admittance to the fact that Wellington Capital has not had the ability to generate ANY income from the existing assets! In the Dec 2008 PIF update it states that the PIF had $96,655,228million in Asset backed investments maturing between 2010 and 2012, this is apart from $305,994million worth of mortgage loans, the $15,417million of cash and cash equivalents, $5,599Million worth of units in managed investment schemes, $15,523million in Fixed interest securities and other assets worth$4,559 million!!! Yes, a total of $443,747million worth of assets!! What happened to all the non mortgage related assets?
I would be embarrassed if I was Wellington Capital, this is an admittance of their failure and ineptitude as Fund managers in my opinion, OR, another sweetheart deal in exchange for something else plus the added advantage of grabbing some votes.
I ask, why now, after more than 2 1/2 years does WC see the need to raise capital to improve the 3 plots? Desperate measures by someone clutching at straws!! (One of which broke the camels back!!) Here is your story Gold Coast Bulletin, the fact that PIF investors have been deceived and robbed and have had an absolute guts full of the current Irresponsible Entity. A bunch of greedy, parasitic individuals feeding off others.

Wellington Capital in all probability are struggling financially and cannot do without our Fund to keep it operating.

Seamisty

And as usual, while Rome is burning, the 3 duly appointed Wellington Capital Investor Advisory Committee represenatives remain silent. Thanks for nothing IAC reps apart from being responsible for an expensive PIF exercise that achieved FA for PIF unitholders. Not one of you had the guts to actually do anything constructive on behalf of PIF investors.Your names will be remembered along with Wellington Capital staff that supported a Responsible Entity that will go down in Corporate history as a failure. One can only say you were all a complete waste of time and expense.
Seamisty

marcom said:

charles36 & breaker, Thankyou. I know you have both put a lot of effort into getting a better outcome for all PIF investors. I can't wait to see the backside of that bitch and the witches coven (or what ever religious group they call themselves) that currently administers our fund.

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Enneagram, Marcom is the name of the cult of which Wellington Capital was the jennorous benefactor who organisied the removal of the church to Andelaine on behalf of David Burke. That would be the same David Justin Burke who is often on site at Forest Resort Creswick, along with Jenny Hutson, probablly wondering why the resort is running at a loss? HELLO, how much does it cost us for you to stroll around our asset you took control of? Don't we already pay for an onsite manager? You, Wellington Capital are a complete waste of our money. Unfortunately for you WC, there are so many affected from your mismanagement that you probablly will be held accountable. Seamisty

Well I would have said an ARMY rather than REBEL group!!! Also the 1cent should have been 2cents.

Numbers lining up against manager
Anthony Marx
From: The Courier-Mail
May 10, 2011 12:00AM

A REBEL group of investors claim they have the numbers to remove Brisbane merchant bank Wellington Capital, from its controversial oversight of a struggling $253 million mortgage fund.

All 10,700 mostly senior investors in the Premium Income Fund will be invited this week to a June 9 extraordinary general meeting in Sydney, where they will be able to vote on resolutions to oust Wellington.

PIF Action Group vice-president Charles Hodges said yesterday that investors, controlling more than 11 per cent of the 755 million units, had already flagged their support for the move.

The figure is more than double the 5 per cent required to call a meeting.

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Continued: http://www.couriermail.com.au/ipad/numbers-lining-up-against-manager/story-fn6ck2gb-1226052820694

A bit more on PIF but also interesting that Equititrust is proposing to convert its two struggling funds to shares.

http://www.smh.com.au/business/equititrust-seeks-shareissue-solution-20110509-1efqs.html

It may well be prudent to prepare a list of investors who are prepared to sign an affidavit confirming the RE's statement that non performance would mean that no exit fee would be paid. ................. You can count me in. .. John H

A copy of a post made by myself in June 2008 on this Forum


Dear Fellow Investors

The more I think about this ultimatum 75% vote for JH or be liquidated at 14 cents the angrier I become

I do not know how other investors feel on this forum but personally I have an aversion to threats.
.
As far as Wellington Capital is concerned; it’s either take what I give you, or off to the Knackery.

Of course nobody wants liquidation it would be a disaster under the current downtrend in the property cycle and Jenny Hutson Knows that only to well.

That is why this ultimatum is morally and ethically wrong

If Wellington Capital does not want the fund why do they not ask other mangers to step in and make an alternative offer?

I think it is the same reason that they asked for 14000 dollars for a data base of investors that should cost only a few dollars to put on a hard disc

And why they will not allow any other manager to look at the books.

Wellington Capital is hanging on to us for dear life like a flys trapped in a spiders web


It is now patently obvious that the modus operandi of the previous mob , King ,Adams Etc changed the Constitution of the PIF on a yearly basis to suit themselves .

Want more money ,no worries we will just change a few things, like enabling us to borrow 200 million from the Royal bank of Scotland without telling investors, etc, etc .

Remember the very act of turning the fund from an unlisted to a listed entity changes the Constitution per se.

So I ask myself , is it that difficult to change the Constitution of a fund ,why are we being placed with a loaded pistol at are heads asked to make a life and death decision with no reasonable choice other than listing .

Are we also to believe that their are no other available option that would give investors some rational alternatives.

One of Jenny Hutson publicly avowed goals in life is to control a listed entity


Therefore I think there is a very high probability that Wellington Capital intends to list us on the NXS as a precursor to a full listing on the AXS

I have refrained from posting this missive for some time, however some people have informed me that they do not understand the full potential ramifications as a listed Entity and have asked me to post.

Lets say WC want to raise some capital .

Well that is quite easy once you are listed you simply manufacture some more paper(shares) effectively diluting the capital value of the fund its called a, Placement , or a Non Renounceable Rights Issue .

The only problem is the existing shareholders will pay a heavy price .Our assets will be effectively devalued

If you want an example have a look at the price Arctic Capital (Packer) is picking up shares in living and Leisure at the present time with a Rights Issue at Four cents

Of course many of the investors who originally invested in Living and Leisure can not afford to take up the issue which means Packer will acquire the asset for a pittance.

I am of the belief that the vast majority of investors who entered the PIF are conservative and not highly risk tolerant .

They invested in this Fund specifically because they did not wish to expose their capital to the perils of a trading market .

Their primary requirement is a guaranteed exit at Net tangible asset value not a price dictated by market manipulators ,which will almost certainly be in the range of 10 to 20cents for many years to come as a listed entity

If Jenny Hutson is prepared to negotiate some form of reasonable Redemption Policy that will allow the many pensioners and self funded retirees in the PIF to redeem their capital at NTA value (which I am certain was always the intention of every person who originally invested in the fund) I can assure you I will be the first in the queue to pay tribute to her virtues.

Believe me I am praying hard that this will happen. Reply

JohnH said:

It may well be prudent to prepare a list of investors who are prepared to sign an affidavit confirming the RE's statement that non performance would mean that no exit fee would be paid. ................. You can count me in. .. John H

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That should of course, be "swear" an affidavit............. JH

Just to re-assure investors, I for one, am not a rebel and nor are any of the severely affected unit holders in this poor and distressed fund that we unfortunately hold units. I note that some lucky unit holders have been able to contact M/S HUTSON with the false but exciting news to M/S HUTSON that ALF are part of Castlereagh and the PIFAG. NOTHING COULD BE FURTHER FROM THE TRUTH. A simple phone call by M/S HUTSON to the PIFAG would have solved any anguish she may have been suffering after receiving such false information. My congratulations to the lucky unit holders who were able to speak with M/S HUTSON, you have accomplished something that many have failed in their attempt OVER A NUMBER OF YEARS Feel free to contact me, I would like to know the secret, and also who peddled the mischievous information to you. Finally, I have the greatest confidence that in the final wash-up, "the truth will out" Kind regards to all and keep an eye out for the postman, he has something you have been requesting for a very long time. Charles 36.

An article entitled "Ferrier backs PIF Rescue Bid" that appears in the Australian Financial Review today 10/5/11 is attached. Interesting reading.

Thanks again Seamisty and the other AG members.
I hate to think of where we would be without your input and researching the info.
Just as we have nigntmares about JH im sure she has had some sleepless nights because of the AG. Then again maybe she has thick skin of a red coated bitch.