Re: Octaviar MFS Premium Income Fund PIF
Breaker1's #1101 objective report gives us reason to remain positive! The recent descent into gloom in many posts is understandable, but pessimism doesn't produce one cent. JH appears to be setting out a realistic process while having the right qualifications to do so.
Imagine if MFS had liquidated the PIF at the time we were receiving those ridiculous newsletters! Be thankful.
If it weren't for Breaker1's initiative we'd be without this informative thread. Let's calm down and be realistic. The world economy, after all, is in tatters. We have a manager trying to help us through this period.
Excellent work Breaker 1. V v v much appreciated. At BNE forum, JH inferred that the 360 days is legislated whereas the equiv law in NZ is 3 years. OPI is a NZ fund and the NZ unit holders voted to use the 3 year period that was available to them to see out the cycle; hence the moratorium. The AU equiv is 360 days. I'm just reporting what JH said. This 360 days has been imposed on us. What's not confirmed for me is why JH gave a 31 March 08 deadline. Redemptions were stopped in January weren't they?
Selciper,
IMO and I'm not an accountant or economist and definitely not a Financial Advisor:
The world economy is NOT in tatters. Far from it. There is growth everywhere (just not in the US) and AU is cashing in on it, BIG time. And will continue to provided we aren't fooled into the panic and flog off the best assets (our minerals resources). (Look at the Xstrata takeover of Mount Isa Mines in 2003 - at the beginning stages of this boom - smart move eh! You don't make a $5B move like that by acting on what you read in the Pop Press)
The high interest rates in AU have been put there by our Reserve Bank to COOL our economy.
There's no doubt, there are big changes going on in the gobal economy and this creates teething problems. Changes such as a shift away from the dominance of the US consumer. But the US (IMO and supported by the image our Pop Press paints) is like a demonstrative child that doesn't want to give someone else a go without a lot of WAAAAAAAAAAA!. They've holed and overloaded their boat through their excess debt and like the graceless and desparate shipwrecked in the water, are clinging to whoever or whatever they can to avoid falling behind. But can we, or should we, cut them free so they can fix up their boat while the rest of us continue on?
Stat I heard on ABC's News Radio a few months back: there are a MILLION US$ millionaires in India. And just like you and me those people want to have kids, buy strollers and toys, go on holidays, buy Plasma TVs, video games and hybird cars, have bigger houses with guest rooms filled with furniture that's rarely used, etc etc.
There are few consumers that embrace doom and gloom like Australians. Makes the RBA's job easier doesn't it. Not necessarily a bad thing.
There's a lot of negative press about the 18% interest rates under Hawke/Keating. Well the self funded retirees and all other savers certainly weren't complaining. With low inflation their buying power just kept on going UP and UP and UP.
Can PIF take advantage of the current market? I don't know. BUT it seems that the higher interest rates go to push down inflation, the easier it will be for PIF to make money. Credit squeeze - the harder it is for quality borrowers to get loans, the better it is for PIF. Or not?