MTSL was the first ever private trustee to be licensed under the Securities Act (1997) through the Securities Commission as trustee to Pacific Balanced Fund and Pacific Property Trust. The license was granted by the Securities Commission in October 2000 through Section 72 of the Securities Act (1997).
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).
On the 31st December 2001 and 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 and retire as Fund Manager by 31st May 2002.
Under this new investment management scheme, the trust scheme can be illustrated as a tripartite relationship between the Fund Manager, the Trustee and Unit Holders governed by a legally binding Trust Deed registered with the Securities Commission who also regulates the scheme and approves operating licenses for Trustee and Fund Manager.
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. Under the new structure saw the birth of Melanesian Trustee Services as the trustee to the fund and Pacific Equity and Investment Services Ltd as Fund Manager.”