AUDITOR ALERT
The uneasy relationship between the manager and auditor of the MFS-founded and shrinking Premium Income Fund continues.
The fund, which is managed by the Jenny Hutson-headed Wellington Capital, released its half-year accounts, which contained an impressive minus $10.7 million in revenue and a $15 million loss, last Thursday. And again, the auditor PricewaterhouseCoopers (which tried to resign last year but was stopped by the Australian Securities and Investments Commission) would not vouch for the asset valuations on which Wellington bases its management fees.
PwC partner Robert Hubbard, in his review of the half-year accounts, said there was a ''significant uncertainty'' as to the recoverability of the $123.8 million of mortgages the PIF still had on its books.
''As a result, there is significant uncertainty regarding the written down value of the mortgage loans and other financial assets and associated position recognised in the statement of comprehensive income,'' he said in the review.
''The final amounts realised could be different to the amounts recognised in the financial statements.''
Wellington still collected $137,000 in management fees for the six months.
Read more: http://www.smh.com.au/business/rinehart-defender-takes-his-case-online-20120319-1vfub.html#ixzz1pb6z5BfO
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