TRUSTEE

As part of the statutory changes a newly established independent licensed trustee company, Nambawan Super, has been appointed as the Trustee of the Fund.

The new Trustee company has been duly licensed by the Central Bank and has a competent commercially experienced Board.

The Board includes two nominees of Government, three independent directors, who together with the Managing Director, are all subject to the stringent fit and proper persons statutory requirements under the supervision of the Central Bank.

FUND ADMINISTRATOR

The trustee has completed the transfer of member funds administration to Kina Investment & Superannuation Services Ltd after the company was awarded the contract in response to the public tender, and as required under the superannuation (General Provisions) Act.

INVESTMENT MANAGER

The fund outsourced its investment function to a licensed Investment Manager, Kina Funds Management (KFM), from the Kina Group of Companies in 2003, as required by the new superannuation legislation.

Last year was a success story and saw good growth and returns to Nambawan Super. The returns provided by the different asset classes, particularly treasury bills and interest bearing deposits are worth noting as the bulk of the income was generated through these sectors.

With the change of environment in the superannuation industry in Papua New Guinea, KFM is confident that the Fund will grow from strength to strength and will be reflected in asset growth and returns to our valued members in 2004. Already, we have seen the fruits of the reform with the elimination of bad investment decision and the strengthening of good corporate governance in all our efforts in making Nambawan Super the number one superfund in PNG.

We are extremely pleased with the excellent relationship that has been developed between Nambawan Super and KFM. The tangible results of this relationship are evident in the 2003 results and we are working to continue enhancing the Fund's future results and achievements for our loyal members.

2004 will be a major task as we continue to work together as a team to beat the benchmark performance of 2003. KFM will continue to provide independent investment advice within the framework of the investment policy and the new Superannuation Act. We thank the trustees,

Management and staff of Nambawan Super for your undivided cooperation last year and trust that we continue to work together as a team to deliver and safeguard the interest of members of the Fund.