Re: Octaviar MFS Premium Income Fund PIF
Seamisty You must agree what the above artical says Except for one thing WC say it can return true value in 3 to 5 years ??? Well thats a real long shot saying it could go from 10 cents to a Dollar in 3 to 5 years Remenber the real value of a company or Fund is only worth what it worth on the exchange Maybe in 20 or 30 years time yu may get your dollar back but with inflation over that time your dollar wont be worth much / Dane //The article appears to have done a vanishing act! I will re post it:::::Wellington faces its WaterlooNick Nichols
September 6th, 2008
ANGRY Premium Income Fund investors are confident they have the numbers to roll Wellington Capital's 'rescue' proposal which goes to a vote in less than two weeks.
Despite Wellington's founder Jenny Hutson revealing this week she had received 97 per cent support from more than 3000 votes counted, PIF Init-iative spokesman Dennis Chapman said large investors still had the numbers to crush the proposal.
The PIF Initiative, a group of investors lobbying against Wellington's plans through an internet campaign, is angry at Wellington's bid to abolish the original responsible entity of the fund -- set up by the defunct MFS (now Octaviar) -- and secure a hefty exit fee in the process.
It also opposes plans to list the fund on the National Stock Exchange.
Mr Chapman said Wellington does not appear to be acting in the best interests of the Premium Income Fund's (PIF) 10,300 investors, many of whom are elderly and have kissed goodbye to the $770 million they invested.
PIF Initiative has approached corporate watchdog, the Australian Securities and Investments Commission, to investigate, although the nature of the investigation has not been disclosed.
ASIC yesterday declined to comment on specific cases.
PIF Initiative also has sought legal opinion as to whether Wellington Capital is acting in the best interests of investors.
Wellington Capital has called a meeting on the Gold Coast for September 18 to vote on three resolutions that are designed to keep the fund a going concern.
"A lot of people don't really understand the full ramifications of what (Ms Hutson) is trying to push through," said Mr Chapman.
"All we're after is a fair go."
Although 3000 votes have already been lodged, Mr Chapman yesterday described PIF Initiative's chances of getting remaining investors vote down the proposals as 'pretty good'.
"The top 3000 people will more than cover it," he said.
Wellington needs the backing of 75 per cent of units by value to proceed.
PIF Initiative is concerned on a number of fronts, including the 14c per unit valuation put forward by Wellington for a liquidation of the fund.
The fund is said to be valued at 45c a unit as a going concern.
Mr Chapman said he believed 45c a unit could be achieved through an orderly sell-off of assets, giving investors the chance to retrieve more of their funds over a quicker timeframe, and he would like to see an independent responsible entity take over the task of doing so.
Wellington Capital has estimated it will take three to five years to restore full value to investors.
"But a lot of these (investors) are elderly people," said Mr Chapman.
"Half of them won't be around in five years. That's the sad part."
Mr Chapman said a promised 3c distribution to investors by December was a major incentive being used by Wellington Capital.
But he said this would be a repayment of capital, rather than payment from profits.
It also would be a trigger for Wellington Capital to be paid ongoing management fees for the fund.
PIF Initiative is opposed to an NSX listing for the fund.
A rush of sellers is expected to push the price of units down to about 10c each, it said.
Mr Chapman said this would be the worst outcome for elderly investors who needed to sell immediately.
Mr Chapman, once a comfortable self-funded retiree, invested about $1.25 million in the failed MFS empire, with about $200,000 in PIF.
"I'm doing it tough like you wouldn't believe, but there are lot more people who are far worse off than me," he said.