Thanks NOR and no. In my lay opinion Wellington doesn't want control over the cash that ARL sends to its shareholder(s). Because the ARL deal and subsequent transfer of the ARL shares out of the fund and to us unit holders seems to me to have dome little more than push the responsibility of reporting further asset value write downs from Wellington to ARL.
June 30 has now passed. So that should mean Wellington will need to report any further large write down of our assets and not ARL. Right? Why? Because according to the Federal Court decision, the ARL shares remain an asset of the fund. Right?
IMLO it's also possible that ASIC won't contest any High Court appeal because June 30 has now passed and this whole PIF-to-ARL-and-ARL-to-PIF-to-Unit holders transaction seems to me to do little more than to help Wellington Capital convince the market they got more $ for us than the 14c we were threatened with in 2008. The market can then ask what purpose did Wellington's years at the helm of PIF serve if Wellington can't deliver as more than 14c?
But who knows what Wellington could do to delay reporting any potential bad news in this year's annual financial report with a High Court appeal application underway.
The High Court may even decide to not hear Wellington's appeal.
But if so, let's hope the Australian High Court has the foresight and wisdom the Lord Chancellor, Lord King had in Keech v Sandford (http://en.wikipedia.org/wiki/Keech_v_Sandford). How's that for dog whistling?
ASIC is foolish to have had any part in the promotion of the likes of PIF. ASIC did so through its excessive self promotion of its AFSL system. And ASIC continues to do so.
This is merely my lay opinion and not legal or financial advice. If anyone finds it offensive or libellous then please contact me immediately.
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