Fund records K41mil windfall

By GYNNIE KERO
PACIFIC Balance Fund (PBF), formerly the PNG Investment Corporation Fund (ICPNG), yesterday announced a net profit of K41 million for the period 2003-2009.
Out of the K41 million, Melanesian Trustee Services Ltd (MTSL) fund manager resolved to pay out a total of K18 million in dividends, in a massive turnaround from near bankruptcy to profitability and prolonged court battles with former fund manager Pacific Equities and Investment Ltd (PEIL).
MTSL chief executive officer Kennedy Wemin said K18 million would be paid to the unit holders of PBF at K1.46 per share.
He said total fund value as of Dec 31, 2011 was K239 million, with total units on offer at 12 million.
“This marks a milestone event since the inception of PBF from the former ICPNG and sets the pace for the future,” Wemin said.
“A once gloomy and almost bankrupt PBF has now done a complete turnaround.”
This will be the first time in the history of PBF to pay dividends.
The last dividend paid to unit holders was in 1998 under the former ICPNG.
“Audit files for 2010 and 2011 have been completed for PricewaterhouseCoopers to review and Deloitte to audit,” Wemin said.
“We expect both audits to be completed by end of June 2012 and made available by September 2012.
“PBF intends to commence trading by November or December 2012 and has put in place all necessary systems.
“Unit pricing is a function that was given to KPMG to carry out for the years 2003-2008, which has now been completed and an announcement will be made soon after internal processes are satisfied.
“Unit price for the year ended December 2011 and possibly mid-year 2012 are crucial to enable commencement of trading functions.
“In 2013 onwards, PBF financials will be up-to-date and these compliance matters will be considered complete and routine financial audit will be required each year.”
After the removal of PEIL in 2008 as fund manager, MTSL embarked on rebuilding the shareholder registry with 60% of unit holders now verified through a nationwide road show.
Wemin said following its removal by unit holders, PEIL was reappointed three times against the wishes of unit holders through the Security Commission, “causing a lot of instability in the minds of unit holders and undermining the efforts of MTSL”.
Wemin encouraged everyone who has not been verified to come forward and assist MTSL verify their shareholding in PBF so that they could share in this windfall.
Securities Commission chairman Douglas Uyassi said it was an outstanding achievement because nothing had been paid out to unit holders for more than 10 years.
“It’s truly a milestone event for PBF and its unit holders since its inception as Investment Corporation Fund of PNG in 1973,” he said.
Meanwhile, MTSL has a new website www.mtsl.com.pg, where announcements and updates will be posted.