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.
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. The fund manager has relinquished its function to the trustee since June 2009.
Further investment by Pacific Balanced Fund in the property business in top class high rise property saw the creation of Pacific Property Trust which acquired the Pacific Place and Pacific MMI Building within the Port Moresby city, and ANZ Building in Lae.
The fund is now expanding to capture the market opportunities by creating the appropriate investment and wealth management trusts including Pacific Dinau Fund, Melanesian Equipment Leasing Trust and Melanesian Resource Trust.
Other trust funds will be created as subsidiaries or related trusts of Pacific Balanced Fund through similar arrangement where the Trustee will establish the Trust and pledge its investee company assets or invest in funds and raise the balance through floating of prospectus, commercial loan, or inviting investment partners.