Similarities as to what happened in the Jenny Hutson managed Wellington Capital Ltd Premium Income Fund (PIF)perhaps? Jenny Hutson is also the chairperson of G8 Education. The PIF is an absolute empty shell these days, embroiled in legal tussles from all directions.
Raise funds from Peter to pay Paul The manager of the MFS-founded Premium Income Fund (PIF), Wellington Capital's Jenny Hutson, provided a novel explanation yesterday on her tactic to pay out a distribution and then soon afterwards raise the same amount through a massively dilutive placement to outside investors.
During a Q&A session at a presentation to unitholders yesterday (where investors were not allowed to ask questions), the Wellington Capital founder at least managed to ask herself some reasonably prickly questions.
On the matter of the 1¢ a unit $7.66 million distribution in April and then the 10¢ a unit $7.66 million raising in May (at a 90 per cent discount to the issue price of the units), Hutson said she was driven to help some investors get some ''cash back into their pockets''.
''With 10,000 investors in the fund, we have the full spectrum of need and investment profile.''
Hutson said the ''right thing to do was to distribute the available cash'' and then raise more capital when it was needed. The 1¢ return took the return to unitholders to 2¢ since Hutson took over in 2008.
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(20min delay)