PRESS RELEASE - Weathermen Capital Advisors Limited Welcomes Recent Announcement by Securities Commission of PNG.

Port Moresby, Papua New Guinea – 23 April 2025

WCAL Press Release - Post Courier & The National - 25 April 2025.pdf

Download PDF • 2.15MB

Weathermen Capital Advisors Limited (WCAL) welcomes the recent announcement by Securities Commission of PNG (SCPNG) that the former Trustee of Pacific Balanced Fund (PBF), Melanesian Trustee Services Limited (MTSL), have consented to discontinue their legal case against SCPNG. We applaud SCPNG for successfully defending its position to terminate the license of former Trustee and Fund Manager of PBF on the grounds of gross mismanagement.

This announcement follows the unit holders’ decision to appoint WCAL as the new trustee of PBF at the inaugural unit holders’ meeting on 19 November 2024 in Port Moresby.

WCAL congratulates SCPNG, under the leadership of Minister Richard Maru and Acting CEO James Joshua for defending the Capital Markets Act 2015 and for setting the right precedence for the industry. WCAL also would like to thank the Marape - Rosso Government for their support in setting up the Task Force Shield which resulted in numerous persons being referred to the law enforcement agencies. This is a true example of take back PNG.

WCAL remains committed to ensuring that the imperatives of PBF are implemented successfully for the benefit of the unitholders and the fund. Below is a summary of our progress.

1. Rebranding of the Fund

To better reflect its national investment mandate and strategic direction, WCAL has recommended renaming the Pacific Balanced Fund which will be announced in June 2025. This rebranding aligns with our vision of fostering greater national participation, financial inclusivity, and investment growth. We are engaging with relevant stakeholders, including the Securities Commission and regulatory bodies, to ensure a smooth transition and compliance with applicable legal requirements.

2. Trust Deed Review

The review of the Fund's Trust Deed has gained momentum since our appointment as Trustee of the Fund. Having this clear mandate has given us confidence to expedite this imperative. A key priority in terms of the review process is to clearly delineate the roles and responsibilities of both the trustee and the fund manager to ensure greater accountability and operational efficiency. Establishing well-defined functions will help prevent overlaps, conflicts of interest, and mismanagement, thereby enhancing overall corporate governance. Ultimately, the primary objective is to protect the interests of all unitholders. International law firm, Ashurst PNG, are leading the review process and we expect to present a final draft to relevant stakeholders once this process is completed in the second half of 2025.

3. Appointment of a Licensed Investment Manager (LIM)

As we continue to review the trust deed, priority has been given to appoint an Independent Licenced Investment Manager (LIM). We are presently conducting due diligence on a short list of firms for this role. A decision on this matter is expected to be finalised and announced by the end of Q3 this year. Licensed Investment Managers are subject to both the SCPNG and Bank of Papua New Guinea regulations, ensuring greater compliance on financial oversight and governance.

4. Financial Audits for FY2023 and FY2024

The financial audits for the year FY2023 and FY2024 are a critical imperative for the fund. The challenges during the transition phase have caused delays, however, significant progress has been made to date. The financial audits are being conducted by Ernest & Young (EY), an independent, internationally recognized audit firm. The final reports are expected to be completed by the end of Q2 of this year and will be made available to all stakeholders.

5. Unitholder Register and Verification Program

A critical imperative for the fund this year is the on-going requirement for unitholder verification. This program will continue from the positive progress we made in 2024 to improve and update the unit register. By strengthening the integrity of the Fund’s unit registry, we can maintain accurate ownership records. We have inherited major legacy issues pertaining to the unit registry and our primary focus will be ensuring these are addressed appropriately. We have partnered with an international fund administrator, Appello Services Ltd of New Zealand, to assist facilitate this process. Appello has extensive experience in fund administration, and we are confident this partnership will ensure that the exercise is efficient, transparent, and aligned with international best practices. Public notices, direct communication channels and consultations will be utilised to engage with unitholders.

6. Review of Past Operations

We are conducting a forensic review of the Fund's historical operations to assess governance, financial management, and compliance with fiduciary duties. The process will involve identifying any financial or administrative irregularities that may have impacted the accuracy of financial reports, and transparency of operations. This will help ensure that all records and transactions are properly documented and aligned with regulatory and fiduciary requirements. This review is being conducted in collaboration with independent financial auditors and legal experts. Where necessary, appropriate actions will be taken to address any identified issues, including legal recourse where fiduciary breaches have occurred.

WCAL is fully committed in being transparent and accountable to the unit holders of Pacific Balanced Fund. We will work closely with all stakeholders to chart a new course into the future.

Contact enquiries@weathermencapital.com.pg for more information.

Approved for Release by:

Jordan Paul

Executive Chairman

Weathermen Capital Advisors Limited