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Wellington Capital PIF/Octaviar (MFS) PIF

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IN THE SUPREME COURT OF THE REPUBLIC OF SINGAPORE PRE-TRIAL CONFERENCE IN THE HIGH COURT BEFORE THE SENIOR ASSISTANT REGISTRAR TEH HWEE HWEE MONDAY, 3 OCT 2011, AT 9:00AM, CHAMBER 4B

S/N CASE NO. PLAINTIFF/S DEFENDANT/S SUBJECT MATTER

15. S551/2011 LIM SEO HWEE, GARY & ORS (SUMMIT LAW CORPORATION) CHERIE HEARTS CHILDCARE SERVICES PTE LTD & ORS (ALLEN & GLEDHILL LLP) CONTRACT - OTHERS
 

SEAMISTY: The management of Wellington Capital are a well sought after "commodity" and I know they are are very adapt at what they do but even they cannot be in two Courts in different countries at the same time. Can you enlighten me how this can be done. I am sure this will not be the last of Court appearances for Wellington Capital Ltd.
 

Well charles36, could one not expect any less from a company who prides itself on 'Innovative Corporate Advice, Experienced Funds Management offerring corporate
solutions beyond the conventional' ?

'Wellington Capital has acted as corporate adviser on over $2 billion in projects. Our extensive involvement in providing corporate advice enables us to provide expert advice on mergers and acquisitions, capital raisings and restructuring.

Wellington Capital has experience as corporate adviser to the boards of various listed and unlisted companies and fund managers. The team has a comprehensive understanding of the regulatory and commercial considerations as corporate adviser and fund manager. They have been involved in advising a range of boards on complex corporate issues including capital raisings, mergers and acquisition and debt restructures.

In addition, Wellington Capital is a nominated adviser of the National Stock Exchange.':::

Surely some Wellington Capital staff must be starting to be a tad embarrassed by their supreme commanders performance?
I bet GEM/G8 shareholders are also feeling a bit concerned by a court case that has run into well over double time of the original 10 days put aside.
 

Thanks seamisty. Hence the roadshow I guess.

Scotty - Hutson has got a very good reason not to pay herself on the unaudited accounts.
Clause 23.1 of the PIF Constitution
WC "is entitled to be paid ... a management fee equal to the sum of 0.7% per annum of the value of the otal funds under management as determined with reference to the preceeding month and the most recent audited accounts." [emphasis added]

That's one heck of a incentive right there for Hutson's WC to sabotage the audit.
At NTA $225M unaudited Hutson and Co gets $131K per month.
At NTA $253M audited Hutson and Co gets $148K per month.

But is Hutson's WC in breach of S18.1 of the PIF constitution where WC must "comply with its obligations at law in respect of preparing, auditing and issuing the financial statements and reports of the" PIF.

So it's off again I went to that seedy downtown full of dark back alleys of a piece of legislation called the Corporations Act.
S314(3) requires the Annual Financial Report within 3 months of the end of the financial year. No mention in that section about an audit.

So does WC's report of last friday comply with S295 "contents of the annual financial report". Well there's no mention in S295 of an auditor's report. So I guess the answer is yes.

So what is the deadline for an audit? I can't find anything in the Corporations Act, namely Part 2M.3 Division 3. Anyone?

So what's stopping WC delaying the release of information so the auditor can form an opinion for years? Like for the Health Services Union?

Is this another case of ASIC squatting on legislation which from a small investors point of view is, to borrow a term from both Julia Gillard and Tony Abbott, "crap"? I.e. more legislation that functions to merely create the perception that Australia is a safe place for small investors to invest?

The Corporations Act is aptly named. It's certainly not the Small/Retail Investors Act.
 

Thank you for letting us continue to do to you what we are doing.
Or
Thankyou for supporting us to enrich ourselves from your wealth.
I'd be smiling too
 
AUDIT REPORT

2010 Audit services ........................................$73,000........................2011.................$142,840
Compliance plan audit.................................3,475.......................... .............................15,800
Tax Services.............................................. 21,865.....................................................48,688
Note: Fund not taxable.

Total:...................................................................$98,340..................................................$207,320

Apparently the fund passed audit in 2010, cost a lot less than 2011. Why the increase in costs and the following comment from auditor?

Quote: "PWC were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion."

Question: How was the fund valued last time PWC?
Question: Where to now Wellington Capital? Who is responsible for this fiasco? Who is responsible to pay PWC?

I have a particu;lar concern with Wellington Capital Ltd participating in the valuation of the fund as there is a problem, whether real or imagined, for a company to receive a fee proportioned on the value of an asset which has not been supported by independent valuation. It may or may not be the law, either way in my opinion it is not safe.
 
Duped, thanks for your fine-print analysis of audits and PIF obligations. Nevertheless, I think that the WC court astrologer may be frowning as he gazes into the 2012 crystal ball. He may be seeing something like "signs of an unfortunate confluence of events will lead to a difficult period of trying matters". Well, I hope so anyway.
 
Even though the PIF interim financial report for 2010 did not have to be fully audited, PWC signed off on http://www.wellcap.com.au/assets/pif/updates/2011/pif_half_year_interim_financial_31_dec_10.pdf


Page 14


'With the assistance of independent advisors, the directors have made an assessment of each mortgage loan to determine the likelihood of recovery and the extent of any possible impairment in the value of these investments.'


Who were the 'independant advisers'??Surely these figures would have to have been made available to the auditors at that time?
 
Duped said:
Thank you for letting us continue to do to you what we are doing.
Or
Thankyou for supporting us to enrich ourselves from your wealth.
I'd be smiling too
Click to expand...

O YES &THANK/S TO ....SH..SH.SH asic sh sh please sleep on never wake up u lot of B.................GERS....JEN
 
I notice that the increasingly large protests in the US against Wall Street bankers and traders have brought about many bitter references to kleptomania. A dictionary definition of kleptomania is: "An obsessive impulse to steal regardless of economic need."

According to the BBC, this protest movement has the potential to become enormous.
 
http://www.nsxa.com.au/ftp/news/021724473.PDF

Update.............Consolidated Constitution
Wellington Capital Limited as responsible entity of the
Premium Income Fund has lodged a consolidated constitution
with the Australian Securities and Investments Commission. A
copy is available from the Wellington Capital website
www.wellcap.com.au. A hard copy will be made available to
Unitholders on request.
This presents, in one document, the Constitution of the Premium
Income Fund as it currently stands for ease of reference.
(can anyone wade through the site and find this?
 

Hi John H

Try this link: http://www.wellcap.com.au/assets/pif/updates/2011/nsx release_consolidatedconstitution_5sept2011.pdf

It was originally an NSX PIN company announcement on 6 September 2011. You can also go to the Wellington Capital website, select the "Investors" tab at the top of the page, then click on "Premium Income Fund"; then on the righthand side of the page under "PIF: Investor and Media Updates 2011", click on "5 September 2011: NSX Release Consolidated Constitution". I printed it off some time ago but still haven't found the time to wade through it. The dates aren't the same for some reason????

It would be a good idea if someone could find the time to compare the old constitution & various changes with the new "consolidated constitution" to ensure that JH isn't trying to pull the wool over our eyes again.

(I think I've given the correct instructions to find the Consolidated Constitution; give it a go and see if it works!)

Cookie1
 
Thanks seamisty. Doesn't surprise me.

The red flags have been waving for PIF investors for such a long time. The incompetence of our public servants, those individuals who make a safe living with a generous and safe defined benefit superannuation pretending to be looking after our interests, is unbelieveable. Perhaps the public service ignorance is wilful. I.e. corrupt?

Here's another example. The ABC was making a fool of themselves yesterday about the class action launched aganst the ANZ for $50M odd. The ABC was dribbling about it being perhaps Australia's biggest ever. What a bunch of uninformed dopes. Not even close. Our class action is about an order of magnitude bigger. How could such a richly endowed organisation such as the ABC be so uninformed or incompetent.
 
As having a new boss in charge of ASIC hasn't seen any improvement in its performance, the government perhpaps should consider making it a division of the Australian Federal Police.
 
Another piece from Scott Roachfort on the asset valuation scam. SMH CBD 7 Oct 2011

READ THE LINES

Yesterday's ''Elephant in the Room Announcement Award'' goes to the manager of the MFS-founded Premium Income Fund, Wellington Capital.

The Wellington founder, Jenny Hutson, in an investor update yesterday noted how she was committed to ''no further capital raising'' and ''limiting fees to 0.7 per cent of funds under management for two years''.

Hutson also noted how the annual financial report ''has been completed''. She just failed to mention that the fund's auditor PricewaterhouseCoopers declined to provide an opinion on the accounts.

PwC partner Timothy Allman said in the PIF accounts he was unable to attain appropriate evidence on the $135.7 million valuation on the loans made by the mortgage fund to various developers - loans that make up 60 per cent of the fund's net assets.

''At the date of issue of this report, we were unable to obtain access to the external advisers and their supporting work papers and, as a result, were unable to evaluate the appropriateness of the advisers' work and obtain sufficient appropriate audit evidence in relation to the recoverable amount of the mortgage loans.''

PIF unitholders might be wondering whether it would be appropriate for Wellington to base its management fees on a valuation that was not signed off by an auditor.

Read more: http://www.smh.com.au/business/happ...ter-another-20111006-1lboo.html#ixzz1a2bg9Smu
 

Wellington Capital, It is not the only matter we are wondering about?
 
selciper said:
A report in the Australian today about alleged goings-on in WA.

http://www.theaustralian.com.au/new...aj-oswal-doubles/story-e6frg6nf-1226160727705
Click to expand...


Australian's really do seem to be a particularly easy target for transferring wealth.

Bondie.

The PIF thing.

Then there's the Myer thing. See http://www.smh.com.au/business/ato-hopes-dashed-in-myer-float-case-20111004-1l7bt.html

Then of course there's the string of legal victories by Fortress over its Octaviar play.

Is Australia the dopiest country on earth?
 
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