PBF

PBF

PACIFIC BALANCED FUND

History & Background

The Pacific Balanced Fund ( PBF ) was formerly known as Investment Corporation Fund of Papua New Guinea ( ICFPNG ). The Fund is a Unit Trust and was established in 1973 through the enabling provisions of the Investment Corporation of Papua New Guinea ( ICPNG ) Act, ( a 1971 Act of Parliament). The Fund was established under section 6 (e) (1) of the ICPNG Act. ICPNG was declared the Trustee and Fund Manager of the ICFPNG under a Management Declaration ( The Trust Deed ) in 1973 until 31st December 2001. In line with the former Mekere Morauta’s Government policy on privatization of state owned enterprises, the Government through its Minister responsible for the administration of the ICPNG Act directed that the ICPNG outsource its core functions as Trustee and Fund Manager of the ICFPNG ( the Unit Trust ) and retire as Fund Manager by 31st May 2002.

A new Trust Deed registered and approved by the Securities Commission of Papua New Guinea became operative as of 01st January 2002 succeeding the old management arrangement under a Management Declaration that expired on 31st December 2001.

The restructure was necessary to achieve greater security of the unit holders’ investment in the Fund including greater transparency and accountability and to make it a modern Fund consistent with the structural and legal arrangements of similar Funds elsewhere internationally.

The re-structure also effectively eliminated all government involvement in the management of and the operations of the Fund.

The Investment Corporation of Papua New Guinea (ICPNG) which is the State owned entity that was the Trustee & Fund Manager ceased to be the Trustee on 31st December 2001 and subsequently retired as Fund Manager on 31st May 2002 effectively ending all government involvement in the Fund.

The Fund is now safe from all undesirable political interferences & manipulations that existed in the past through the politically appointed boards and management of the Investment Corporation of Papua New Guinea which was the Trustee & Fund Manager.

Change of Name to the Pacific Balanced Fund

In order to reflect the new look Fund and the departure from its relationship with the previous Trustee & Fund Manager and the stigma associated with that relationship, a submission was made to the Securities Commission of Papua New Guinea to approve the change of name from Investment Corporation Fund of Papua New Guinea ( ICFPNG ) to Pacific Balanced Fund ( PBF ).

Such approval was granted. The Fund has formally changed its name to Pacific Balanced Fund ( PBF ) effective as of 1st March 2004. The Fund also has a new logo as displayed.

The Fund is now a Commercial Unit Trust registered under the Securities Act 1997.

The total number of registered unit holders in the Fund as at 27th February 2004 is 36,351. All unit holders are advised that the unit certificates issued up to 27th February 2004 will not be affected. However, unit holders who wish to change their certificates under the new name may surrender their old certificates in order to obtain new certificates.

Growth Prospects & Opportunities

The Fund has operated successfully and has been paying regular dividends to unit holders every year since its inception in 1973 up to 1998.

Growth Prospects

The total departure of Government involvement in the Management and operations of PBF through the structural changes now positions the Fund well with good future growth prospects.

Opportunities

As a commercial unit trust, the Fund can now invest in a variety of investment options available in the market place following the structural changes which has removed the constraints and restrictions that existed under the old arrangement.

The Fund can now also invest in some of the following investment options if they satisfy the rigorous investment selection process:

(i) International stocks listed in various international stock exchange

(ii) Shares in overseas blue chip companies

(iii) International Unit Trust Funds

(iv) International money market instruments

(v) Foreign currency dealings

(vi) Mortgage loan companies and other debt securities

Should you have any queries regarding Fund Administration issues or general questions regarding the Pacific Balanced Fund please contact us and we will gladly assist you in anyway we can.

Trustee of the Pacific Balanced Fund

Melanesian Trustee Services Limited (MTSL) was the Trustee of Pacific Balanced Fund. Their trustee license was revoked by the Securities Commission of PNG in January 2005. MTSL continues to act as the Trustee under a court order pending the determination of a court case before the National Court of Papua New Guinea and a new trustee is appointed.

Your Investment Specialists

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