mfs needle post, page-14

hi jadel,

Yes...Pepretual Trustees would be what they call the "Responsible Executive" that gives the final "okay" on any investments done by the Fund Manager

Hi athryio...

" but is mfs, an entity teetering on insolvency, qualified to be raising managed funds from which it will derive substantial fee income?"

Your statement highlights why - as I mentioned orginally - MFS may well be better off selling the FM business, or at least changing its name - the MFS "brand" may smell for awhile now and may impact their ability to attract new investors.

However, it is unfair to suggest MFS are "teetering on insolvency" , otherwise you may have found ASIC would already have pulled the pin. Make no mistake ASIC would be monitoring this situation closely and they would have ALREADY suspended MFS Funds if there was even a hint they were insolvent.

As for MFS being "qualified to be rasing funds"...why does ANYONE suddenly think they are NOT qualified? Have the funds performed poorly? Are MFS crooks? Have they LOST investor money? ARe their suggestions of improprietary here?

No....they have simply been subject to a credit crunch that is pressuring their ability to re-finance a LEGITIMATE, FIXED & FLOATING Charge, SHORT TERM DEBT. In other times, re-financing would have been a piece of cake (otherwise, why do you think a business like RAMS was viable for 10-15 years?). At worst...at VERY worst...MFS may be guilty of a poor strategy that involved short term debt raisings...but it would be a hard task master who accused them of that since very few predicted such a severe credit crunch (so severe, it brought down RAMS entire business structure despite gilt-edged assets backing their debt).

In the interests of balance, and clear thinking, it is importnat to remember the facts not the media spin.

I do not recall the company saying anything - at anytime -that their businesses are suffering a squeeze; that cash flow has diminished; or that any losses have been sustained.

It is simply wrong - based on the information released - to suggest this business is close to insolvent.

Regards

Coop