The PRWIRE Press Releases https:// 2017-03-21T03:52:21Z Pacific Current Group Limited (ASX:PAC) - Resolutions Pass at Poorly Attended EGM 2017-03-21T03:52:21Z pacific-current-group-limited-asx-pac-resolutions-pass-at-poorly-attended-egm The extraordinary general meeting (EGM) of Pacific Current Group Limited (PAC), held in Sydney last Thursday saw the resolutions put to the EGM by the company adopted. These resolutions were, in the opinion of a concerned group of shareholders representing 5.78% of PAC’s equity, based on an incomprehensible independent experts’ report; and voted on and rubber stamped by the institutional shareholders with little support, as far as we can ascertain, coming from the ordinary and real shareholders of the company.  Not that the EGM seemed to have been considered important enough by the PAC board for most of its members to deign to attend: the no-show by most of the directors, while in accord with the desultory turn-up of shareholders, was an indictment on a listed company seeking approval for major structural change, and yet another slap in the face for long-suffering minority ordinary long-term PAC shareholders.  Outgoing high-profile chairman Mike Fitzpatrick (a director since 2004) had a calendar clash, being in Melbourne where he handed over the baton of chairmanship of the Australian Football League (AFL). That was a far more interesting event, it seems; and no doubt one that brought far more prospect of ego-stroking for Mr. Fitzpatrick than the perfunctory piece of corporate theatre taking place in Sydney.  Nor were any of the Australian directors who were the masterminds behind the 2014 merger of PAC – or Treasury Group Limited, as it then was – with Northern Lights Capital Group, present and accounted for.  Holding the fort were Seattle-based director and global chief investment officer and related party Paul Greenwood, Sydney-based chief financial officer Joe Ferragina and Melbourne-based executive director Tony Robinson.  Joining the Chairman in their conspicuous absence were directors Gilles Guérin (director since December 2014), Peter Kennedy (director since June 2003), Melda Donnelly (director since March 2012), and Jeff Vincent (director since December 2014 and related party).  For such an important meeting, the shareholders who did turn up could have been forgiven for feeling short-changed.  Certainly, the representative of Advocate Strategic Investments (ASI) at the EGM, who voted against the resolutions in conjunction with other shareholders representing in total 5.78% of PAC’s capital, contended that shareholders were justified in feeling that way.  Those shareholders who did bother to turn up were sent to the wrong floor, compounding the impression that they are nothing but a nuisance to the company and the insiders who run it.  The formalities were completed in a perfunctory, clinical fashion – the outcome was a foregone conclusion. A 39-page “presentation to shareholders” was presented, however, only to the Australian Securities Exchange (ASX): it was lodged as a PAC announcement after the resolutions had been voted on and passed. Naturally, given the company’s habitual opacity, there was no discussion of this presentation sought or entertained (by its presenters Tony Robinson, Paul Greenwood and Joe Ferragina) in the meeting of the company’s owners. The representatives of the company were there to rubber-stamp the formalities, not explain the proposals or argue for them on their merits.  It was a total waste of time, all of a piece with the way that, since the November 2014 with Northern Lights, the shareholders of TRG/PAC have seen:  Almost $140 million in write-downs in less than two years, with more inevitably to come; About $220 million of lost market value within the same period; About $70 million of debt saddled onto a once debt-free company; The company’s corporate structure, responsible entity business and infrastructure demolished within Australia, to become in effect managed as a debt-ridden satellite of its US-based true owners; Substantially reduced dividends to shareholders; Non-disclosure e.g., concerning the court case surrounding del Rey Global Investors LLC at the time of the announced merger with Northern Lights; Misleading, deceptive and evasive statements about the operational existence, quality and quantum of the Aurora Trust’s assets and funds, namely The Hermes Accelerator fund, Nereus, Tamro, de Rey and others; and The enrichment of known and unknown executives with questionable performance rights and unsubstantiated payments made from shareholders and Aurora Trust funds (which resulted in a massive 84% protest vote from shareholders at PAC's 2016 AGM).   As far as we can gauge, none of the above will be redressed or changed by the new structure.   From our perspective the following are changes, in no specific order, we expect to see from the company as it proceeds through its simplification process:  Change in board size and composition;  Substantial cut to the excessive remuneration tendency, which has clearly rewarded under-performance at the expense of the company;  Removal of entrenched directors and executives, who have presided over the financial destruction of the company; and    Substantial improvement required in the governance of the company, particularly in areas of strategic and enterprise risk management. What PAC needs to do to recover its position in the burgeoning Australasian market place is to assertively market its “investment brand”, by consistently articulating its:  Disciplined and exacting strategic planning process; Corporate growth and capital allocation strategy (organic or through acquisitions, distribution, product research and development (R&D), share buy-backs, debt and dividend policy;  Marketing and distribution strategy Value drivers behind financial results and future desired state;  Targeted financial and operational performance metrics;  Distinctive tangible and intangible assets, that is, what sets the company apart;  Consistent and credible transparency and timely disclosure; and  Corporate governance policies and best practices.  If the current board will not accept the need for these actions and their prompt execution, it is time for company’s shareholders to find one that will. ******************************************************************************************************************* CONTACT: Primary person – Michael de Tocqueville Email: info@advocatesi.com.au Domestic 03 9653 9083 or Direct 0402 039 993 Global +61 3 9653 9083 or Direct +61 402 039 993 ******************************************************************************************************************* About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Advocate Partners an associate of ASI is the holder of Pacific Current Group Limited shares. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd ABN: 77 101 691 598 AFSL 224560 Level 27, 101 Collins Street Melbourne, VIC 3000, Australia  Treasury Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners LLC, Laird Norton Company,  AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Money Magazine,  Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/ Deloitte Touche Tohmatsu, Australian Securities & Investment Commission,    PACIFIC CURRENT GROUP LIMITED (ASX:PAC) - SHAREHOLDERS UNITE AGAINST POOR GOVERNANCE 2017-03-06T03:44:45Z pacific-current-group-limited-asx-pac-shareholders-unite-against-poor-governance 06 March 2017 MEDIA For Immediate Release Pacific Current Group Limited  Initial Substantial-Shareholding by Associated Shareholders Pacific Current Group Limited shareholder group to focus on company’s Corporate Governance, Audit and Risk Management controls, ahead of EGM and restructuring proposals. A new alliance of shareholders in Pacific Current Group Limited (PAC), which has achieved ‘substantial shareholder’ status, intends to shine the light more strongly on what it describes as the “poor corporate governance, audit and risk management controls” of PAC. The new group, which represents the holders of an aggregate stake of 5.78% in PAC, will bring particular focus to bear on the November 2014 merger of PAC (then known as Treasury Group Limited, ASX code: TRG) with Northern Lights Capital Partners LLC (NLCP) and its investment partner BNP Paribas Capital Partners LLC. The 5.78% shareholders are particularly concerned with the oversight of enterprise and strategic risk at TRG/PAC, which it believes has been sub- standard, both before and since the November 2014 merger. Since the highly questionable merger, some $200 million has been wiped off Pacific Current Group’s market value, in just over two years. TRG/PAC shareholders have also seen ensue from the merger at least $100 million in write-downs in less than two years, with more still to come; and some $70 million of debt foisted onto their once debt-free company. All this has arisen from a merger with interests associated with the company's (now disclosed) related parties, namely Laird Norton Wealth LLC, Northern Lights Capital Partners LLC, their investment partner BNP Paribas Capital Partners LLC, and certain Pacific Current Group Ltd. executives, past and present. Now the shareholders of PAC have been asked to consider a proposed restructuring and simplification of PAC, as announced to the Australian Securities Exchange (ASX) on 13 February 2017. A new shareholder group has been formed to contest these proposals. Acting in concert with other concerned PAC shareholders, Michael de Tocqueville, the chief investment officer of Advocate Strategic Investments (ASI), is now the designated principal person to speak on behalf of the substantial-shareholding group, which currently holds an aggregate stake of 5.78% in PAC. ASI and the other various shareholders have declared they are acting in concert Section 12(2)(c) of the Corporations Act 2001, concerning the affairs of the company in which they have a shared interest. “The shareholders have decided to come together because of their concerns relating to the poor corporate governance and risk- management practices of their company, and also with the restructuring and simplification proposals,” says de Tocqueville. The shareholder group believes the proposals put forward for the meeting are neither fair nor reasonable to PAC's shareholders, who have seen the value of their company destroyed, said de Tocqueville. “All intend to vote or have voted against the proposals, but stand ready to engage with PAC to present an alternative plan that would simplify the company even further – well beyond what the company is proposing – while delivering a manifestly better outcome to shareholders than that envisaged by the proposals,” he says. “This alternative plan would also redress some of the destruction of shareholder value that has characterised the company since the November 2014 merger. “It would also deliver greatly improved transparency, better shareholder alignment and a clear path to redressing the way in which the debt has flowed one-way since the merger,” adds de Tocqueville. The November 2014 merger transaction was effected through the creation of a fixed trust called Aurora Trust (AT), to hold the merged assets contributed by Treasury Group and Northern Lights Capital Partners. Aurora Trust is owned by Northern Lights Capital Partners, LLC (NLCP) and BNP Paribas Capital Partners LLC: Trust units were issued to the beneficiaries namely, TRG/PAC, NLCP and BNP Paribas, reflecting the equitable interest held by each. From the start Treasury Group putatively owned the majority of the units in Aurora Trust, commencing at approximately 61%, and rising to the current 65%. While supposedly holding that majority interest in Aurora Trust, TRG/PAC shareholders have watched helplessly as the Trust’s structure and operations have caused the write-downs, the diminution of their company’s market value, and the blow-out in its debt – from nil upon entering the merger. “Given that the whole sorry saga of the merger with Northern Lights has already saddled TRG/PAC shareholders with about $70 million in debt, the 5.78% shareholders have no wish to send good money after bad,” says de Tocqueville. In particular, the 5.78% shareholders are concerned about the due diligence process that the board and executive of TRG undertook prior to the November 2014 merger – given that failures of this process at the time are being compounded, in the shareholders’ view, by the restructuring/simplification proposals being put to the PAC EGM. The 5.78% shareholders want to know exactly what examinations and deliberations were undertaken at the time by the TRG Audit & Risk Committee, with respect to the assessment and management of the strategic risk to TRG attendant on the merger; and the presentation of that risk to the shareholders of TRG in a manner that would allow the shareholders properly to assess that risk prior to voting on the merger proposal. The 5.78% shareholders contend that neither of these processes, which were the responsibility of the TRG Audit & Risk Committee, were done to a professional standard – and the direct outcome of this failure of the oversight committee has been the destruction of shareholder value that all TRG/PAC shareholders have experienced. “Our group also wants to know why the TRG board did not see the ‘red flags’ we believe they should have seen; and if these red flags were seen, why the TRG board went through with the merger,” says de Tocqueville. The 5.78% shareholders believe the November 2014 merger represented a failure in TRG/PAC’s strategic risk management function, by which the Audit & Risk Committee is charged with understanding and managing the company’s risk and risk management processes, in a transparent manner. The 5.78% shareholders also take issue with the restructuring/simplification proposals, which they believe are designed to facilitate the acquisition by PAC of interests over worthless assets brought to the merger by Northern Lights, BNP Paribas and Laird Norton, in exchange for PAC shares, at a price and multiple that cannot be verified by PAC shareholders as being fair and reasonable – and that PAC is attempting to mollify and influence shareholders through the presence of an independent expert’s report that falls short of being authoritative. “As is sadly typical of financial and corporate information that PAC provides, it is completely opaque what the contractual arrangements are that caused the independent expert to settle on US$21 million as a fixed redemption price. From the information that the expert has furnished, no PAC shareholder can work that price out, or be confident that the US$21 million is real,” says de Tocqueville. The 5.78% shareholders believe that the Trust units known as X redeemable preference units (XRPUs), which are owned by NLCP, BNP Paribas and their cohorts, should not – as the proposals released to the market on 13 February 2017 suggest – have that contingency converted, without proper investigation or scrutiny, to an actual liability (redemption price) fixed at US$21 million ($27.3 million). “We believe that the actuality of the XRPUs liability should be reversed to a contingent liability based on the performance of the various assets to which it applies, that is, the respective performance of the alternative- assets funds management boutiques vended into Aurora Trust by NLCP their partner BNP Paribas and TRG/PAC,” says de Tocqueville. “In any event, the alternative-assets boutiques in question, which were brought to the merger by NLCP and BNP Paribas, have mostly been written off or sold. These are mostly worthless by our account – therefore, we believe the XRPUs should be expunged,” he adds. In light of this, the 5.78% shareholder group strongly believes that the XRPUs liability should not be guaranteed. “We contend that the original terms of the November 2014 merger were that all such amounts had to be attached to an earn-out, not simply handed over,” says de Tocqueville. “In our opinion, there has been too much money flow from the Trust to NLCP, its related parties and BNP Paribas: part of our simplification plan is that the US arm of the company becomes a separately managed and accountable unit of the Trust, and that also PAC introduces transparent divisional accounting as a priority, for example, implementing disclosed operational objectives and performance metrics, with independent transparent accounting, for the US arm.” He says this would cover the entities Northern Lights Capital Group LLC and NLCG Distributors LLC, which trade under the business name ‘Pacific Current Group’ in the USA. “Our shareholder group would be pleased to share with other interested shareholders additional value-enhancing ideas that are riskless, having regard to the performance of Pacific Current Group,” says de Tocqueville. He says the 5.78% shareholder group’s simplification plan would also be designed to redress the trust deficit that now attaches to the company’s investor information and ASX reporting. “Well-governed companies (with proper strategic and risk management controls in place) bend over backwards to ensure that shareholders are fully informed at all times. This company is the opposite – its intention seems always to be to fog the windows. PAC’s approach to reporting and disclosure appears to be designed to achieve the legal minimum required, and no more,” says de Tocqueville. The 5.78% PAC shareholders request that their compatriots not be seduced by the assuring tones of its self-interested board in acquiring the units of Northern Lights and BNP Paribas and their cohorts as proposed at the forthcoming EGM in Sydney on March 15, until such time as the worth of the financially destructive investments that these entities brought to the 2014 merger with Treasury Group have been forensically examined by a real independent expert. “Our group contends that this must occur before all PAC shareholders are even remotely supplied with the complete information they need to assess the intrinsic value of their investment,” says de Tocqueville. CONTACT: Primary person – Michael de Tocqueville Email: info@advocatesi.com.au Domestic 03 9653 9083 or Direct 0402 039 993 Global +61 3 9653 9083 or Direct +61 402 039 993 ******************************************************************************************************************* About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Advocate Partners is the holder of Pacific Current Group Limited shares. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd ABN: 77 101 691 598 AFSL 224560 Level 27, 101 Collins Street Melbourne, VIC 3000, Australia  Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners LLC, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Money Magazine, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/ Deloitte Touche Tohmatsu, Australian Securities & Investment Commission,  PACIFIC CURRENT GROUP LIMITED (ASX:PAC) AND THE SEA GOD NEREUS, PART 3 2017-01-31T04:40:28Z pacific-current-group-limited-asx-pac-and-the-sea-god-nereus-part-3 As a shareholder in Pacific Current Limited (PAC), constructivist investor Advocate Strategic Investments (ASI) has long been concerned about – and investigating – at least $14 million of shareholders’ (and Trust) funds that PAC has handed to Nereus, without proper disclosure, which is supposedly an Indian-based private equity boutique focused on renewable energy infrastructure. Nereus Capital LLC (NereusCap) is – at least theoretically – economically owned (50%) by Aurora Trust (Aurora Trust), which is 65.15 per cent-owned by Pacific Current. The Aurora Trust’s accounts for FY16 report these investments in Nereus Capital (see page 43 of the accounts). http://paccurrent.com/wp-content/uploads/2016/10/30-June-2016-Trust-FS-Final-signed.pdf Until recently, ASI’s investigation had focused on two main questions: (A) which Nereus entity – there are at least seven – received and holds the PAC investment; and (B) what this entity proposed to do with the invested funds. More recently, confronted yet again with Pacific Current’s habitual unwillingness to answer the legitimate questions of its shareholder owners, ASI has reluctantly begun to contemplate a third main question – has equitable fraud been committed against Aurora Trust? Pacific Current seems to have handed over at least $14 million of shareholders’ (and Trust) funds to Nereus, without proper disclosure. All that PAC shareholders have seen from their relationship with Nereus is that Aurora Trust wrote down the value of its holding in Nereus by $8.9 million in FY15 and by a further $11.2 million in FY16. This is bad enough, but the whereabouts of PAC’s shareholders’ $6.5 million paid to Nereus in financial years 2015 and 2016 is now more concerning to ASI. To recap, ASI has identified seven Nereus entities.  1. Nereus Capital LLC (NereusCap) – at the time of the November 2014 so called merger by Treasury Group Limited (TRG) (as Pacific Current Group (PAC) was then known) of the US-based Northern Lights Capital Group (NLCG), simultaneously Northern Lights’ private equity fund, Northern Lights Capital Partners LLC (NLCP) vended NereusCap into the newly created Aurora Trust. NereusCap is supposed to have two funds, the India Alternative Energy Fund, which provides finance to independent power producers for construction and implementation of renewable energy projects, and the India Solar Investment Trust, which provides construction finance to utility-scale solar power projects that provide electricity to commercial or industrial users, and seeks to generate stable, low-volatility, annual yields from the contracted sale of power. 2. Nereus Capital Investments Pty. Ltd (NCPL)  3. Nereus Holdings LP (NHLP) 4. Nereus Capital Investments (Singapore) Pte. Ltd. (NCI) 5. Nereus Capital Advisors Pvt. Ltd. (NCA) 6. Nereus India Alternative Energy Fund LLC (NIAE) 7. Nereus Consultants Private Limited (NCPL) ASI has since found entities 8 and 9: Nereus Capital (Cayman) MS Limited (NCC) NIAE Fund LLC (NF) (the acronym stands for ‘Nereus India Alternative Energy.’) Also, NCI has an interest in two companies in India, Medak Solar Projects Private Limited and Dubbak Solar Projects Private Limited. These effectively qualify as Nereus entities ten and eleven, seeing that ASI has established that NCI has been channelling money from Singapore into both companies. PAC shareholders appear to be potentially funding all eleven of these entities, none of which can be established to be active and solvent entities, by thorough investigation – and certainly not from the minimal information provided by PAC to its shareholders and the Australian Securities Exchange (ASX). There is also the not inconsequential matter of the US$5 million ($6.58 million) that Aurora Trust has placed in an escrow account with HSBC Bank, which can be drawn upon by Nereus Capital Investments (Singapore) Pty. Ltd. (NCI) “if and when certain prescribed thresholds with regard to annual revenues of NCI are not achieved.” This account relates to NCI’s joint venture with Chinese company Hareon Solar Technology Company Limited (HAREON) (listed on the Shanghai Stock Exchange), known as Nereus Capital Investments (Singapore) Pte. Ltd. (entity four), which was established in 2015 to invest in solar projects in India. But according to its latest corporate brochure, Hareon has no operating projects in India and none under construction (it has Indian projects in its “global project reserve.”) http://en.hareonsolar.com/uploadfiles/file/201512/61.pdf What ASI finds particularly interesting is that Nereus Capital Investments (Singapore) Private Limited (NCI) acted as borrower and guarantor to a £200 million bond (medium-term note) issue program mounted by Indian Solar Energy PLC (ISE) – a possible Nereus entity number twelve – in the London retail bond market in November 2015. This followed an announcement by TRG to the ASX on 21 August 2015 about an investment in Nereus, with the support of another beneficiary of PAC’s Aurora Trust, Northern Lights Capital Partners LLC, (controlled by Laird Norton LLC, a company associated with PAC director Jeff Vincent).  ASI has learned that the London-based securities dealer (bond placement agent) and the leading legal firm charged with drafting the legal documents (prospectuses) have both been left holding unpaid accounts amounting to some £500,000 (A$825,000), owed by Nereus (ASI has been provided with copies of the documents). The Central Bank of Ireland rejected the prospectus for the £200 million medium-term note (MTN) issue – the notes were intended to have been traded on the main securities market of the Irish Stock Exchange – and subsequently another prospectus was filed with the Channel Islands Securities Exchange Authority Limited, for the notes to be admitted to the official list of the Channel Islands Securities Exchange. For unclear reasons, the transaction collapsed at this stage; and Nereus Capital Investments (Singapore) Pte. Ltd. appeared to disown it, dismissing all attempts to get the advisers to the transaction to be paid what they were owed.  The professional services firms have attempted to have their invoices for the work done on the MTN issue paid by forwarding their invoices to Pacific Current, but Pacific Current has told these creditors that it is not an interested party in Nereus and bears no responsibility for Nereus Consultants Private Limited’s (NCPL) operations and debts. However, a document provided by a PAC whistle-blower shows that Nereus Consultants is owned 51% by Nereus Holdings LP (NHLP), in which the Aurora Trust is a 50% partner. The ownership of NCPL has also been confirmed in records obtained from the Ministry of Corporate Affairs – Government of India. The eminent London securities house’s department head has told ASI that it only entered into the Indian Solar Energy PLC MTN transaction because, Nereus, by way of the November 2014 merger, was part of Treasury Group Limited, which, as an ASX-listed company, provided it comfort. Indeed, the securities head has told ASI that it was introduced to the transaction by the London team of Treasury Group, which arranged and hosted the meetings, with all formal communication being driven out of the Treasury Group Limited (now known as Pacific Current) US office in Seattle.  What is more, it appears from information that ASI has been able to trace, that at least one of the persons involved in the negotiations with the London-based securities house had in fact previously resigned his position with the Nereus entity signing the placement terms of agreement – which was Nereus Consultants Pte. Ltd. – long before the transaction, effectively misleading the securities house. However, emails in our possession disclose that same Nereus executive was issuing instructions to the London Securities house on behalf of Nereus Capital LLC.  This is the kind of behaviour that is now associated in the capital markets with Aurora Trust, as putative “owner” of Nereus, and by extension, associated with PAC shareholders, who putatively “own” Aurora Trust. As a PAC shareholder, ASI does not like being associated with such behaviour, which is why it has asked PAC a series of questions attempting to get to the bottom of the Nereus association – and where at least $14 million of PAC’s shareholders’ funds forwarded to “Nereus” has actually gone.  Part 1 - http://prwire.com.au/pr/64543/pacific-current-group-limited-asx-pac-and-the-sea-god-nereus Part 2 - http://prwire.com.au/print/pacific-current-group-limited-asx-pac-and-the-sea-god-nereus-part-2 If PAC does not know this, the construction that equitable fraud has occurred is difficult to avoid. To date, PAC has provided no answers whatsoever. On behalf of shareholders, ASI will keep trying to bring this secretive company to understand that there are things it has chosen not to disclose – or even worse, does not know – that it has a duty to disclose to its shareholders and the ASX about what it has done with the shareholder’ money! ******************************************************************************************************************************** As a constructivist equity investment manager, ASI will be engaging with the board and executive of Pacific Current Limited more earnestly to suggest strategic, operational and governance changes that it believes could help the broader stock market to better understand the Pacific Current Group' business, and thus begin to redress the steep valuation discount currently being applied. ASI maintains that both Pacific Current Limited and Aurora Trust are, as constituted at present, deliberately opaque with respect to their accounts and the operating performance of their assets, to the extent that shareholders cannot discover the true economic performance of their investment in Pacific Current Limited. Thus shareholders cannot have any confidence in the board and management of Pacific Current Group Limited with respect to redressing the dismaying loss of shareholder value since the company struck what ASI believes to have been a poorly thought-out merger with interests associated with Laird Norton Company LLC, BNP Paribas Investment Partners, and their cohorts. ASI has also questioned the scope of the company’s audit, and the independence of the auditors, given the related advisory fees paid to the firm in 2014-2015-2016. Pacific Current Group' history of poor Governance, exemplified by its shabby risk management controls coupled with the opaque and highly questionable financial disclosures (and non-disclosures) is a sad reflection of corporate incompetence in Australia. Incompetence, which led to $200 million or more of shareholders funds and equity destroyed in less than two years. ASI will engage, where possible, with Pacific Current Limited in a constructive manner. It will continue to seek answers to specific questions that have been put to the Company which to date, which has been mostly ignored, as well as others continuing to arise. ************************************************************************************************************************************* About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Advocate Partners is the holder of Pacific Current Group Limited shares. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598  AFSL 224560 Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Investment Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Money Magazine, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/ Deloitte Touche Tohmatsu, Australian Securities & Investment Commission,  PACIFIC CURRENT GROUP LIMITED (ASX:PAC) AND TAMRO CAPITAL PARTNERS 2017-01-24T04:12:19Z pacific-current-group-limited-asx-pac-and-tamro-capital-partners If an Asset Management Firm Dies, Do Its Owners Have to Know on the Day it Died? And What are the Trustee' Fiduciary Obligations in that Regard? For the shareholders of Pacific Current Group Limited (PAC) – formerly known as Treasury Group Limited (TRG) – the sorry saga of TAMRO Capital Partners stands as a sad testament to the disastrous merger their company consummated with US-based Northern Lights Capital Group in November 2014. At the time of the merger, Northern Lights vended TAMRO into the newly created Aurora Trust, which was formed to hold the 21 boutique asset management firms that the combined group would own, managing just under $50 billion. Treasury Group shareholders were told at the time that they would own 24 per cent of TAMRO, a US small-cap equities specialist manager based in Alexandria, Virginia.  They were told that TAMRO had $2.2 billion in funds under management (FUM), representing just over 9% of the $24.2 billion managed by the Northern Lights boutiques, and that it contributed about 10% of Northern Lights’ FY14 pro forma net profit, or about $1.57 million – which was presumably now going to flow to Aurora Trust. Treasury Group shareholders were told that TAMRO had reported a growth rate of 25 per cent–30 per cent a year over the past five years. The transaction was going to diversify Treasury Group’s activities into high-growth boutiques, give Treasury Group’s existing boutique managers opportunities for increased distribution in the US market, and provide access to the Australian market for Northern Lights’ boutiques. So far, so attractive. But as long-suffering Treasury Group shareholders – who are now Pacific Current Group Limited shareholders – are well aware by now, none of that happened.  And somewhere along the way, they lost TAMRO Capital Partners – although, of course, they were not told about it.  Pacific Current Group shareholders (the name was changed in October 2015) did not receive accounts for Aurora Trust in FY15. They did receive Aurora Trust’s accounts for FY16, dated 3 October 2016, in which they discovered that TAMRO had been written-down in value by just over $1.7 million. A few weeks later, on 27 October, Pacific Current Group company showed a slide at its annual general meeting (AGM) indicating that stated that TAMRO had closed or been sold – it was not specified which, just that FUM lost through the “closure or sale” of TAMRO, Origin/Trilogy and WHV had been replaced by FUM gained in Aperio. Had they been sharp-eyed enough, however, or diligent Googlers looking for details of their company’s “assets,” Pacific Current Group shareholders would have seen an article on the website of Pensions & Investments magazine (pionline.com), dated May 2, 2016, stating the Florida State Board of Administration (FSBA) had “terminated” in December 2015 a mandate with TAMRO Capital Partners, under which it was managing US$128 million in a small-cap core portfolio for FSBA.  FSBA terminated TAMRO Capital Partners after the firm was “placed on watch in 2014 for performance and organizational issues, “ the pionline.com article quoted FSBA communications manager John Kuczwanski as saying in an e-mail. “TAMRO closed the firm,” the article quoted Kuczwanski as saying. “In a call to the firm, a message states Tamro is closed,” pionline.com continued. “The Securities and Exchange Commission shows the firm's investment adviser registration is inactive.” See: http://www.pionline.com/article/20160502/ONLINE/160509980/florida-state-board-slates-17-billion-in-commitments-investments And the shareholder’s friend, Google, does reveal – if asked – that FSBA did indeed place TAMRO Capital Partners on watch, for “performance and organizational issues,” in September 2014 – this was reported by pionline.com on September 10, 2014:  http://www.pionline.com/article/20140910/ONLINE/140919982/florida-sba-makes-changes-to-its-watchlist That might have sent a curious Pacific Current Group shareholder to the SEC website at SEC.gov, and to the Investment Adviser Public Disclosure (IAPD) section, where they could have plugged in TAMRO Capital Partners’ Central Registration Depository (CRD) number – CRD# 144764 – and discovered that the SEC terminated TAMRO Capital Partners LLC’s registration on 21 March 2016. https://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=144764 Further investigation might have found that on 22 April 2016, the US-based online auction house RASMUS auctioned off the office goods and chattels belonging to TAMRO: http://www.rasmuscatalog.com/cgi-bin/mnlist.cgi?rasmus1078/category/ALL In summary, this asset TAMRO was placed on watch by one of its clients for performance and organisational issues, BEFORE the merger in 2014 through which it was foisted on Treasury Group shareholders – in fact, this occurred during Treasury Group’s so-called “due diligence” period. How could Treasury Group not pick this up in its due diligence in the period between the merger announcement and its execution? Then, this asset TAMRO went out of business – and Pacific Current Group did not see fit to tell its shareholders this for seven months, and only then in an unclear reference in a slide at the AGM. Welcome to continuous disclosure and shareholder communication, as Pacific Current Group practises them! The poor disclosure regarding the fate of TAMRO Capital Partners is just another sorry example of the incompetence and secretivness that have beset Pacific Current. But it pales into insignificance when set against the greater failing, the handing over of $288 million dollars of unencumbered, Treasury Group Limited shareholders' funds for units in a questionable and opaque Trust.  And then, for the shareholders to see those same unitised shareholder funds squandered, in exchange for what are now known be, tainted and impaired assets - with their attached debt and liabilities amounting to some $136 million dollars, courtesy of Laird Norton Company, BNP Paribas Investment Partners, the Northern Lights entities and their cohorts.   ASI has asked Pacific Current repeatedly to reveal what it has done with the shareholders’ money, but it has ignored us. At the very least, we have requested that Pacific Current provide its shareholder owners with the 2014-15 accounts of Aurora Trust, to give them some hope of making sense of the Byzantine arrangements that have so denuded their shareholders’ funds – but Pacific Current refuses to do this. That is perhaps the crowning disgrace in what is already a low point in Australian corporate governance. *********************************************************** As a constructivist equity investment manager, ASI will be engaging with the board and executive of Pacific Current Limited more earnestly to suggest strategic, operational and governance changes that it believes could help the broader stock market to better understand the Pacific Current Limited business, and thus begin to redress the steep valuation discount currently being applied. ASI maintains that both Pacific Current Limited and Aurora Trust are, as constituted at present, deliberately opaque with respect to their accounts and the operating performance of their assets, to the extent that shareholders cannot discover the true economic performance of their investment in Pacific Current Limited. Thus shareholders cannot have any confidence in the board and management of Pacific Current Limited with respect to redressing the dismaying loss of shareholder value since the company struck what ASI believes to have been a poorly thought-out merger. ASI has also questioned the scope of the company’s audit, and the independence of the auditors, given the related advisory fees paid to the firm in 2014-2015. ASI will engage, where possible, with Pacific Current Limited in a constructive manner. It will continue to seek answers to specific questions that have been put to the Company which to date, which has been mostly ignored, as well as others continuing to arise. *********************************************************** About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Advocate Partners is the holder of Pacific Current Group Limited shares. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598  AFSL 224560 Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Investment Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Money Magazine, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/  Deloitte, Australian Securities & Investment Commission,  PACIFIC CURRENT GROUP LIMITED (ASX:PAC) AND THE SEA GOD NEREUS PART 2 2016-12-23T04:32:48Z pacific-current-group-limited-asx-pac-and-the-sea-god-nereus-part-2 ASI is continuing to investigate the Nereus entities, but to this point, so little verifiable information exists, it is difficult to ascertain whether actually, any of them exist, and in what form. Perhaps, against the grain of its now customary opacity and secrecy, Pacific Current will deign to tell its shareholders the status of these entities – after all, the shareholders still appear to be funding them. Where has the $6,466,474 million that Pacific Current Group shareholders’ Aurora Trust (*Trust) has given Nereus gone? And what is the reason behind Trust further agreeing to place a further US$5,000,000 in an escrow account with the Hong Kong and Shanghai Banking Corporation Limited Singapore (the Escrow Account) somewhat described on page 42 of the Trust’s accounts? *Trust: Broadly a unit trust, as in the case of Aurora, is a relationship in relation to identified property; it is not an entity. It is a relationship between the legal owner (the trustee) of property (the trust property) and the beneficial owner or owners of that property (the beneficiaries and by extension Pacific Current Group shareholders) to whom the trustee owes obligations.  Of all the grounds for anger that the shareholders of Pacific Current Group Limited – formerly known as Treasury Group Limited – have over their company’s disastrous merger with US-based Northern Lights Capital Group LLC in November 2014, the sheer dubiousness of their “asset” Nereus Capital LLC takes the cake. http://www.researchpeindia.com/?q=news/276 The experience that former Treasury Group Limited shareholders have had with Nereus exemplifies the merger, in which a cuckoo – in the form of the Northern Lights portfolio of boutique managers that was vended into the merger – was introduced into the nest, where it has chewed up more than $100 million worth of shareholders’ funds in less than two years. And which continues to be chewed up.  Moreover, the debt load that came with the cuckoo has put Treasury Group/Pacific Current in a position where current liabilities exceed current assets. Treasury Group entered the merger with a simplified debt-free structure only to end up, bow broken on the rocks spewing debt courtesy of an adept enriched crew and ship masters of spin! Constructivist equity investment manager Advocate Strategic Investments (ASI), a Pacific Current Group shareholder, is investigating the deterioration in Pacific Current Group’s financial standing since the Treasury/Northern Lights merger. ASI says Nereus – one of the “assets” that Northern Lights vended into the merger – exemplifies both the disaster that the merger has brought to Pacific Current, and the habitual opacity and secrecy that characterises the merged group’s governance and reporting practices. Treasury Group shareholders were told at the time of the merger that Nereus was an Indian-based private equity boutique manager focused on renewable energy infrastructure. Through its 65.15% holding in Aurora Trust (the vehicle created to hold the merged fund management assets of Treasury Group and Northern Lights Capital Group), Pacific Current has funded Nereus to the tune of about $6.5 million.   But PAC shareholders have absolutely no way of knowing which of at least eight entities bearing the name of Nereus, that exist to ASI’s knowledge, have received this money. Moreover, PAC shareholders have absolutely no way of knowing, as of December 2016, which, if any, of the at least eight entities bearing the name of Nereus are active, solvent going concerns. In a tangible sense, all that PAC shareholders have seen from their relationship with Nereus is that Aurora Trust wrote down the value of its holding in Nereus by $8.9 million in FY15 and by a further $11.2 million in FY16.  At the time of the November 2014 merger, Northern Lights vended into the newly created Aurora Trust an asset called Nereus Capital LLC (entity one). https://www.usaid.gov/news-information/press-releases/first-its-kind-investment-guarantee-100-million-clean-energy-india Nereus is supposed to have two funds, the India Alternative Energy Fund, which provides finance to independent power producers for construction and implementation of renewable energy projects, and the India Solar Investment Trust, which provides construction finance to utility-scale solar power projects that provide electricity to commercial or industrial users, and seeks to generate stable, low-volatility, annual yields from the contracted sale of power. http://ifcextapps.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/b225291aef38262e852579c600683e06?opendocument https://cleantechnica.com/2014/08/29/pe-backed-hareon-solar-plans-add-150-mw-solar-power-capacity-india/ But in August 2015, Treasury Group Limited announced an investment in an Indian renewable energy infrastructure fund called Nereus Capital Investments Pty. Ltd., or NCI (entity two) – and stated that this investment represented “continued strategic support of current affiliate, Nereus Holdings LP” or Nereus (entity three). https://www.companybooknetworking.com/KY0000000815555145 http://www1.nyc.gov/nyctp/organizationDetails.htm?orgId=132837&orgName=NEREUS%20HOLDINGS,%20LP The announcement said that Aurora Trust “will make a small initial equity capital investment in NCI, but will provide a contingent commitment of up to US$25 million, which can be called no sooner than the sixth anniversary of the deal.” At the same time, Chinese solar energy company Hareon Solar Technology Company Limited (listed on the Shanghai Stock Exchange) entered into a joint venture with Nereus Capital and Treasury Group: the joint venture company Nereus Capital Investments Singapore Pte. Ltd. (entity four) would be majority owned by Hareon Solar, and would invest in solar projects in India. According to the company’s website, Hareon has no operating projects in India, and none under construction. http://en.hareonsolar.com/index.php?c=content&a=list&catid=141 There was already a Nereus Capital Advisors Pvt. Ltd, (entity five) an Indian private limited company, established to provide investment advisory services to the Nereus India Alternative Energy Fund LLC (entity six). http://www.vccircle.com/news/banking/2012/03/20/ifc-invest-20m-nereus-capital%C2%92s-cleantech-fund Then we find (entity seven) the Nereus' India Solar Investment Trust which in 2014 it was announced Nereus was joining forces with Hareon Solar Technology Co Ltd a Chinese solar panels manufacturer to develop over 150MW of solar power projects in India over the next two years. however, the true value of the deal was not revealed and cannot be found today.  That announcement followed an earlier media announcement by Nereus which said “Nereus Capital’s India Alternative Energy Fund had last year received a fresh USD100 million commitment from overseas limited partners (LPs) for its maiden fund targeting USD250 million. This investment came from Northern Lights Capital Group and US Agency for International Development (USAID). In 2012, the fund closed a USD20 million commitment from International Finance Corporation, the investment arm of World Bank”. What is the status of this fund? http://smartcity.eletsonline.com/hareon-solar-and-nereus-capital-to-develop-150mw-solar-power-projects-in-india/ Researching the various corporate entities called Nereus involved in solar power in India has led ASI to the Ministry of Corporate Affairs (MCA) of the Government of India. A search of the records at MCA disclosed interests associated with NCI.  The records disclose that NCI has an interest in two companies in India, Medak Solar Projects Private Limited and Dubbak Solar Projects Private Limited.  The business address of both Medak and Dubbak is the same: Flat No. 1105-1106, Ashoka Estate, New Delhi 110001 India.  ASI found a listing for a company called Nereus Consultants Private Limited (NCPL) (entity eight). As it happens, this company’s address is the same as Nereus Capital: Suite 1806 at the Four Seasons Hotel in Mumbai. Nereus also has another Indian office, in Delhi, which is also a suite in a luxury hotel, The Leela Kempinski Gurgaon Hotel and Residences.   Effectively, Medak Solar Projects Private Limited and Dubbak Solar Projects Private Limited qualify as Nereus entities nine and ten, seeing that MCA records disclose that NCI has been channelling money from Singapore into both companies. The latest funds channelled were recorded at MCA on 3 November 2016. As far as ASI is aware, PAC shareholders have never been told of the existence of the companies Medak and Dubbak. Further research about solar farms, led us to ask our stock broking connections in London where we were informed about another Nereus qualifier to fill the position of entity eleven. That position goes to the proposed Nereus sponsored, Indian Solar Energy PLC £200,000,000 Sterling Medium Note Programme which we were told, was to be listed on the Irish Stock Exchange and rejected, the alternative was to then approach the Channel Island Stock Exchange to consider the proposal (which we were also told happened).  We have in our possession draft copies of the two prospectuses (Irish and for the Channel Islands) dated 23 November 2015 and 21 January 2016 (provided by London Solicitors). They both disclose the proceeds of the issue were to be on-lent to Nereus Capital Investments (Singapore) Private Limited (NCI) (as the "Initial Borrower"). NCI is 50% owned by the Aurora Trust which the documents show, is a subsidiary of Nereus Holdings LP (Nereus) in which the Trust holds a limited partnership (50% share). Nereus’ other limited partner from other records we have, disclose that partner as being, Enfield Hill LP (Cayman 10/29/2010) whose ultimate beneficial owner (77.50%) is a Jonathan Winer. The beneficial owner holding the balance (22.50%) we have been informed by a third party, could be a former executive of Pacific Current Group (to be confirmed). We have also been advised the London-based securities dealer (bond placement agent) and the leading legal firm charged with drafting the legal documents, have both been left holding unpaid accounts amounting to some £500k, owed by Nereus, relating to several hundred pages of legal documentation and advice, as agreed to, concerning the proposed Nereus driven £200m bond issue.  As far as we know, Pacific Current Group has never disclosed to its shareholder’s details of the proposed £200m bond issue. However, that itself is not unusual, as the shareholders are quite used to being kept in the dark by the company (more questions to come). On 9 December 2016, ASI asked Pacific Current Limited the following questions: 1. PAC and its trustee company Aurora Investment Management (AIM) discloses and mentions several entities called “Nereus.” Can AIM tell PAC shareholders which Nereus entities received (in part or all) the proceeds from the $6,466,474 as distributed and paid out in financial years 2015 and 2016, as disclosed in   Aurora Trust’s accounts dated 3 October 2016? 2. Can AIM provide an explanation for the payments? 3. In relation to the existence of Nereus Holdings LP, what can AIM tell PAC’s shareholders about this company, which seems to have just materialised? 4. Does AIM know of the existence of the Indian companies Medak Solar Projects Private Limited and Dubbak Solar Projects Private Limited, and if so, can it explain to PAC shareholders what it knows about them? 5. If AIM knows of the existence of Medak and Dubbak, why hasn’t it disclosed the fact of their existence to PAC’s shareholders? 6. Is AIM also aware that NCI has been channeling funds to Medak and Dubbak from its bank accounts? 7. If AIM is aware of the movement of those monies, what explanation can it provide to PAC’s shareholders about the matter? 8. PAC told its shareholders on 21 August 2015, NCI was an alternative asset manager. We note that NCI is based in Singapore. Can PAC tell us: (a) Is NCI licensed to operate as an investment manager by the Monetary Authority of Singapore (MAS), and if not, why not? (b) Is NCI licensed as an investment manager in any other jurisdiction and if so which one(s)?  (c) Who are NCI’s team members? (d) What is the name or the names of the fund or funds that NCI manages? (e) What is the domicile of the fund or funds that NCI manages? (f)  Does NCI use external parties, such as independent placement agents, to raise assets? If so, how are they compensated? (g) Does the manager have a written code of ethics and a compliance manual? (h) Does the firm have any oversight committees for risk, valuation, compliance, etc.? (i)  Is there a separate compliance officer for international offices, if any, and is this person familiar with local regulations? (j) Who are the outside attorneys or outsourced compliance providers in Singapore? (k) Who is NCI’s auditing firm? 9. Can AIM tell PAC’s shareholders whether any of the monies finding their way to the Indian companies named Medak and Dubbak belong to them? 10. Is AIM aware of any person who has attempted to engage, or has engaged, in activities designed to defraud – or has defrauded – PAC and its minority shareholders? If so, could AIM please explain this to PAC shareholders? 11. Is AIM aware of any Trust funds belonging to PAC shareholders as having been misappropriated? If so, what is the potential for any recovery of these funds?  12. Is AIM aware of the Company called Nereus Consultants Private Limited (NCPL)? If so, what can it tell PAC’s shareholders about that company? 13. Is AIM aware of any misfeasance, deceptive and misleading conduct, which may affect (or has affected) PAC’s financial interests? 14. Has PAC’s trustee company AIM, having regard to its special relationships and fiduciary obligations, become aware of any conduct that may potentially constitute equitable fraud? ASI looks forward to updating the market on Pacific Current’s answers, which hopefully might solve the burning issue for PAC shareholders, namely where has their share of the Trust money gone? Pacific Current either does not know itself – or is unwilling to tell its shareholders – into which of the Nereus entities the money it has paid has gone.  Stand by for the next edition of ASI’s attempts to search, identify and locate the activities of Nereus and its various entities. https://www.google.com.au/search?q=nereus+northern+lights&oq=nereus+northern+lights&aqs=chrome..69i57.16422j0j7&sourceid=chrome&ie=UTF-8#q=nereus+northern+lights+capital+solar+%24 *********************************************************** As a constructivist equity investment manager, ASI will be engaging with the board and executive of Pacific Current Limited more earnestly to suggest strategic, operational and governance changes that it believes could help the broader stock market to better understand the Pacific Current Limited business, and thus begin to redress the steep valuation discount currently being applied. ASI maintains that both Pacific Current Limited and Aurora Trust are, as constituted at present, deliberately opaque with respect to their accounts and the operating performance of their assets, to the extent that shareholders cannot discover the true economic performance of their investment in Pacific Current Limited. Thus shareholders cannot have any confidence in the board and management of Pacific Current Limited with respect to redressing the dismaying loss of shareholder value since the company struck what ASI believes to have been a poorly thought-out merger. ASI has also questioned the scope of the company’s audit, and the independence of the auditors, given the related advisory fees paid to the firm in 2014-2015. ASI will engage with Pacific Current Limited in a constructive manner. It will continue to seek answers to specific questions that have been put to the Company which to date, have been mostly ignored, as well as others continuing to arise. *********************************************************** About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598  AFSL 224560 Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Personal Investor, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/  Deloitte Pacific Current Group Limited (ASX:PAC) -Shareholders Initiate Legal Action 2016-12-16T06:23:48Z pacific-current-group-limited-asx-pac-shareholders-initiate-legal-action Pacific Current Group Limited shareholder initiates legal process to consider launching both a derivative action in the company’s name and a class action against the company’s management and advisers. Michael de Tocqueville, a key shareholder and founding director of Treasury Group Limited, now called Pacific Current Group Limited, is seeking legal opinion on whether there are grounds to launch a class action against the company’s management and its auditor. An additional action to be considered is a derivative action on behalf of Pacific Current Group itself. de Tocqueville is undertaking this action in his own right as well as representing several other Pacific Current Group shareholders. de Tocqueville’s investment management company Advocate Strategic Investments (ASI) will be circularising other key shareholders outlining his concerns at the events and revelations that have seen more than $200 million of Pacific Current Group’s market value destroyed in under two years, due to what he believes was a poorly thought-out, sloppily executed and reckless merger with Northern Lights Capital Group LLC and its cohorts in November 2014.  “After numerous discussions with our advisers, other shareholders, about the $140-plus million of losses, impairments and costs attributed to Aurora Trust (the vehicle, theoretically controlled by Pacific Current Group, that was established at the time of the merger to hold the combined boutique funds management firms); the messy and opaque financial accounting as described by Morningstar and other research houses; and the enrichment of executives with unsubstantiated cash bonuses, which resulted in a massive shareholder backlash at the company’s recent annual general meeting of shareholders, our group is convinced that we have a legal case to be heard, which will enable action to be taken on behalf of the company – which may also lead to compensation being paid to certain shareholders through a class action,” says de Tocqueville.  “Now is not the time for interested shareholders to sit around with no input while the value of their company languishes even further under the control of those who have already presided over the loss of more than $200 million in market value. We, the company’s owners, must take direct and immediate action,” he adds. About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598 - AFSL 224560  Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners LLC, NLCG Distributors LLC, Northern Lights Midco LLC, BNP Paribas Capital Partners LLC, BNP Paribas Investment Partners, Laird Norton Company LLC, Australian Securities Exchange Limited, ASX, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Shareholder Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com, William Blair, www.leadenhall.com.au, Deloitte, Gresham Partners, Herbert Smith Freehills, Google finance, Bloomberg, AAP, Nereus,  Pacific Current Group Limited (ASX:PAC) and the sea-god Nereus 2016-12-02T05:28:12Z pacific-current-group-limited-asx-pac-and-the-sea-god-nereus In Greek mythology, the sea-god Nereus was famed for his truthfulness and virtue. Constructivist equity investment manager Advocate Strategic Investments (ASI) hopes that this will be the case with Nereus Holdings LP (Nereus) which is based in the Cayman Islands. Nereus is a boutique fund manager (infrastructure) owned by its investee company Pacific Current Group Limited (PAC) through its controlled Aurora Trust. Nereus also controls Nereus Capital Investments (Singapore) Pte Ltd (NCI) which is a holding Company that was established on 25 September 2013. In its campaign against the habitual secrecy and opacity that characterises the corporate governance and communications strategy of PAC, ASI points to Nereus as a typical example. The Nereus entities, supposedly Indian-focused private equity boutique(s) investing in renewable energy infrastructure, are theoretically owned by the Aurora Trust – which is itself theoretically controlled by Pacific Current Limited – but ASI says PAC shareholders have no idea whether Nereus or the infrastructure funds even exist or indeed to a standard institutional or sophisticated investors would expect. When the merger between Treasury Group Limited and Northern Lights was announced in August 2014, Nereus was one of the Northern Lights assets vended into the new entity. Apart from its description, as an Indian-based private equity boutique focused on renewable energy infrastructure, no figure for funds under management (FUM) was stated. The value placed on the Nereus investment to facilitate in part, the questionable Northern Lights merger, was in the order of $15 million or more. PAC shareholders contributed further cash through their share of PAC's controlled Aurora Trust to Nereus in financial years 2015 and 2016 which amounted to a further $6.5 million. All that Pacific Current shareholders have really seen of Nereus is that Aurora Trust wrote it down by $8.88 million in FY15 and by a further $11.21 million in FY16 (the Trust continues to give shareholders money to Nereus). This is just part of the more than $120 million in write-downs that have been applied by Aurora Trust to the Northern Lights portfolio in less than two years.  When one visits the Nereus website, at http://nereuscapital.com, there are beautiful pictures and interesting videos on renewable energy, but very little in the way of hard information or numbers. Nereus is supposed to have two funds, the India Alternative Energy Fund, which provides finance to independent power producers for construction and implementation of renewable energy projects, and the India Solar Investment Trust, which provides construction finance to utility-scale solar power projects that provide electricity to commercial or industrial users, and seeks to generate stable, low-volatility, annual yields from the contracted sale of power. But even as a PAC shareholder, ASI has had problems locating valid and current information of any real kind on these two funds. There is no investment performance data or funds under management information on the website.  The most recent press release on the Nereus website dates from August 2014. The website contains no employees’ names listed, no telephone number and no email address.  ASI has recently learned that in 2015, an institutional investor considering an investment into a Nereus Infrastructure fund withdrew at the last minute because it could not be provided with a bank account into which to deposit funds for investment?   ASI has also traced Nereus's Indian operations to a suite in the Westin Hotel in Mumbai? ASI is continuing to investigate Nereus Capital, but to this point, finds it an entity where so little verifiable information exists, it is difficult to ascertain whether Nereus still exists, and in what form. ASI notes, however, that Pacific Current Group shareholders do have tangible evidence of their control of a Trust that owns Nereus  – they have seen $20.09 million of impairments in that Trust’s accounts. We have asked PAC  for information concerning Nereus's and its infrastructure funds, the silence has been deafening! Stand by for the next edition of ASI’s attempts to identify and locate the activities of Nereus Holdings and its various entities. *********************************************************** As a constructivist equity investment manager, ASI will be engaging with the board and executive of Pacific Current Limited more earnestly to suggest strategic, operational and governance changes that it believes could help the broader stock market to better understand the Pacific Current Limited business, and thus begin to redress the steep valuation discount currently being applied. ASI maintains that both Pacific Current Limited and Aurora Trust are, as constituted at present, deliberately opaque with respect to their accounts and the operating performance of their assets, to the extent that shareholders cannot discover the true economic performance of their investment in Pacific Current Limited. Thus shareholders cannot have any confidence in the board and management of Pacific Current Limited with respect to redressing the dismaying loss of shareholder value since the company struck what ASI believes to have been a poorly thought-out merger. ASI has also questioned the scope of the company’s audit, and the independence of the auditors, given the related advisory fees paid to the firm in 2014-2015. ASI will engage with Pacific Current Limited in a constructive manner. It will continue to seek answers to specific questions that have been put to the Company which to date, have been mostly ignored, as well as others continuing to arise. *********************************************************** About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598  AFSL 224560 Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Personal Investor, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/  Deloitte ASI appoints global tax expert with significant financial services expertise for investment team 2016-11-21T04:48:02Z asi-appoints-global-tax-expert-with-significant-financial-services-expertise-for-investment-team +++ MEDIA RELEASE +++ ASI appoints global tax expert with significant financial services expertise for investment team Constructivist investor Advocate Strategic Investments (ASI) has expanded its Melbourne-based investment team, with Lewis Culliver joining ASI as Strategic Financial Analyst, Investments. Culliver will be responsible for researching the significant number of companies (small to large-cap) on the Australian Securities Exchange (ASX) that are trading below their intrinsic value, where the constructivist strategy of investing in the company and engaging with it to bring about improved governance can be applied.  ASI’s shareholder investment strategy focuses on under-valued assets with strong, defensible franchises capable of being renewed and sustained. Within this strategy, Culliver will play an integral role in selecting the companies that will populate the ASI portfolio, which will then be made available to wholesale investors through a separately managed customised account (SMA). Culliver has spent the past five years in Paris, where he was Deputy Head of Tax and Global Corporate Tax Leader at AXA SA’s head office. Prior to that appointment he was Group Tax Manager at AXA Asia-Pacific Holdings in Melbourne for 14 years.  He has also worked as a public accountant and auditor. Culliver holds a Bachelor of Commerce degree from the University of Melbourne, and is a member of the Institute of Chartered Accountants of Australia.  “We’re delighted to add a finance professional of Lewis’ calibre to the team,” said Michael de Tocqueville, chief investment officer at ASI. “Lewis has a strong interest in listed companies of all shapes and sizes, and brings a formidable, forensic set of skills to the job of analysing companies for the particular circumstances we seek. “We see Lewis as a key hire and a cornerstone of the high-level intellectual and professional capability that we’re building at ASI,” said de Tocqueville. ................................................................................................................................................... About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd - ABN: 77 101 691 598 - AFSL 224560 Level 27, 101 Collins Street Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Pacific Current Group Limited (ASX:PAC) - Lawyers to Investigate Class Action for Aggrieved Shareholders 2016-11-09T05:30:48Z pacific-current-group-limited-asx-pac-lawyers-to-investigate-class-action-for-aggrieved-shareholders After watching the share price drop a whopping 70% - in less than two years - following Pacific Current Group Limited’s disastrous US foray, ‘constructivist' investor Advocate Strategic Investments (ASI) has formally commissioned lawyers to investigate a shareholder class action against the company.   The investigation will focus on the November 2014 merger of Treasury Group Limited (as the company was then known) with US-based Northern Lights, the due diligence conducted at the time by the Treasury Group board on the merger and the valuation of the assets being vended into it by Northern Lights, and the guidance given to the Australian stock market at the time.   "Pacific Current Group booked more than $77 million in impairments in the 2016 financial year, and current liabilities now exceed current assets," says ASI's Michael de Tocqueville. "How this could happen to a solid, highly regarded S&P/ASX 300 company, which was hitherto sound and debt-free, is beyond our comprehension.   "Between November 2014 and January 2015, Treasury Group/Pacific Current shareholders saw $288 million of their shareholders' funds, including more than $60 million in cash, transferred into the control of a highly questionable group, which has resulted in $188 million of those funds being wiped out so far. Aggrieved shareholders must be compensated for the loss of their equity,” says de Tocqueville.    _____________________________________________________ About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd  ABN: 77 101 691 598 - AFSL 224560  Level 27, 101 Collins Street  Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners LLC, NLCG Distributors LLC, Northern Lights Midco LLC, BNP Paribas Capital Partners LLC, BNP Paribas Investment Partners, Laird Norton Company LLC, Australian Securities Exchange Limited, ASX, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Shareholder Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com, William Blair, www.leadenhall.com.au, Deloitte, Gresham Partners, Herbert Smith Freehills,     Record Remuneration Rejection Should Have Real Results At Pacific Current Group Limited 2016-11-04T07:11:20Z record-remuneration-rejection-should-have-real-results-at-pacific-current-group-limited Following the stunningly emphatic defeat of Pacific Current Group Limited’s proposed 2015-16 remuneration plan at last week’s annual general meeting, constructivist investor Advocate Strategic Investments (ASI) demands a claw-back of the wages and bonuses in the defeated plan. The vote against the remuneration report was a record for an Australian Securities Exchange (ASX)-listed company. Pacific Current reported a $48.2 million loss in the 2015-16 year, mainly because of a $77.5 million write-down of Seizert Capital Partners. Despite this, the company proposed to pay former Chief Executive Tim Carver $1.72 million – including a cash payment of $824,421 – despite Mr. Carver resigning in April, to join US investee fund manager GQG Partners. Chief Investment Officer Paul Greenwood received $1.79 million, while Finance Director and Chief Operating Officer Joe Ferragina was paid $755,890. These payments were followed up by the non-executive directors having their salaries increased by 42 percent. Shareholders at the annual general meeting last week were adamant – to the tune of an 84 per cent vote against the remuneration report – that these payments were manifestly excessive. In the wake of the shareholder vote, ASI proposes that 84 per cent of these amounts are returned to the company. That these handouts are excessive is true not only in the context of the company’s disastrous actual performance in 2015-16, but also when set against the $147 million worth of impairments that the assets brought into the company by Northern Lights have required, in less than two years, and the $200 million that has been wiped off the market value of Pacific Current since the November 2014 tie-up with Northern Lights and BNP Paribas. These are only the payments that shareholders know about – there are plenty of other passengers on the gravy train, in both Sydney and Seattle, whose remuneration is as difficult to identify as much of the company’s financial information. Pacific Current shareholders have seen $288 million of their hard-earned equity transferred into the Aurora Trust, only to see more than half of this amount – $148 million – go up in smoke in less than two years. It’s time for a bit of redress! ASI intends to address the structure of the Pacific Current board. The board is top-heavy with people who are not, in ASI’s opinion, adding demonstrable strategic value. As a result, we believe that Paul Greenwood, Melda Donnelly, Gilles Guerin and Jeff Vincent should step down.  _____________________________________________________ About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd - ABN: 77 101 691 598 - AFSL 224560 Level 27, 101 Collins Street Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Personal Investor, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/  London City Equities Limited (ASX:LCE) - Shareholder Queries Validity of Imperial Pacific Asset Management's Australian Financial Services Licence (AFSL) 2016-10-28T02:42:19Z london-city-equities-limited-asx-lce It seems to Advocate, a London City Equities Limited (LCE) shareholder, the AFSL under which Imperial Pacific Asset Management Pty Ltd (IPAM) manages the LCE's multi-million dollar portfolio may be in serious breach of Australian Securities & Investment Commission's (ASIC) licence conditions.  LCE's portfolio manager IPAM, was also responsible for a $7 million dollar loss resulting from a failed investment in a company called Penrice Soda Limited. The manager may have also commingled monies belonging LCE members into an unauthorised investment trust belonging to the portfolio managers parent Imperial Pacific Limited (IPC) which is listed on the ASX (ASX:IPC).  Advocate has grave concerns about the management of LCE's shareholder funds.  Advocate has asked to see the portfolio management agreement between LCE and the manager IPAM. Peter Murray the Chairman of LCE told Advocate it was none of their business. Name: IMPERIAL PACIFIC ASSET MANAGEMENT PTY LIMITED Licence Number: 288318 Status: Current ABN: 41 000 034 293 Commenced: 20/06/2005 Licence Conditions 20/06/2005 Does not allow Portfolio Management 1. This licence authorises the licensee to carry on a       financial services business to:    (a) provide general financial product advice only, for          the following classes of financial products:       (i) deposit and payment products limited to:         (A) basic deposit products;       (ii) derivatives;       (iii) debentures, stocks or bonds issued or proposed             to be issued by a government; and       (iv) securities;       to wholesale clients. https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=n2emb78aq_4 Mr. Peter Murray Chairman  London City Equities Limited Level 4, 20 Loftus Street Sydney 2000 NSW C.c. The Auditor Mark O'Connor Cutcher Neale 18 October 2016 LONDON CITY EQUITIES LIMITED (LCE) CORPORATIONS ACT 2001 - SECT 250PA Written questions to auditor by member Advocate Partners Pty Ltd We submit the following questions to the auditor relating to the content of the auditor's report regarding LCE's 2016 financial report and the conduct of the audit of the 2016 financial report. 1.0  Note 17(3)(d) to the financial report states: "there is a formal management agreement in place with Imperial Pacific Asset Management Pty Limited, a subsidiary of Imperial Pacific Limited. This was approved by shareholders on 16 November 2004 and provides for, inter alia, a term of 15 years from 1 July 2005 and fees of 1% of the value of the Portfolio, together with possible performance fees of 15% of any gain achieved above the performance of the S&P ASX 300 Accum Index movement. The total fee payable during 2016 was $58,902 (2015 $46,696)". Questions: 1. While the note discloses how IPAM is remunerated under the Management Agreement, has the auditor checked to ascertain what (if anything) IPAM actually does pursuant to the Management Agreement? 2.  IPAM is the holder of AFSL no. 288318, allowing it to provide general financial advice only. IPAM is not permitted by its AFSL to provide, for instance, investment management services. If IPAM is not permitted to provide investment management services, what does it do to justify the payment to it of $58,902 in 2016 (which is 141% of LCE's net profit in the same year)? 3. What is IPAM's mandate under the Management Agreement? 4.  How does the mandate compare with the terms of AFSL no. 288318? 5.  Is IPAM conducting its business within the terms of AFSL no. 288318? 6. If it is, precisely what service does IPAM provide to LCE? 2.0  Notes 20 and 24 refer to LCE's failed investment in Penrice Soda in 2008 and continuing investigations into the "scope for recovery" of the money lost (about $6- 7 million). Questions: 7. Given that the investment took place about 8 years ago and limitation periods are generally no more than 6 years, has the auditor checked to ascertain whether LCE has advice that there is scope for recovery? 8. The notes claim that investigations may lead to legal action against Penrice and others. If limitation periods have expired, this statement would seem to be incorrect and misleading. Has the auditor checked whether in fact the investigations are continuing? Has the possibility of legal action been verified by the auditor? 9. Note 20 is headed "Contingent Asset". Given that the losses on the failed Penrice investment were about $6-7 million, collection of this contingent asset would approximately double the net assets of the company. Collection of the asset is obviously highly material and critical for investors. What has the auditor done to ascertain collectability of the contingent asset? In the company of shareholders in attendance at the Company’s forthcoming AGM we look forward to receiving the Auditors answers on the questions raised. Yours sincerely, Michael de Tocqueville Chief Investment Officer AFSL Responsible Manager 224560 About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer ASI is the manager of the Advocate Partners portfolio which holds London City Equities Limited shares. As a Constructivist investor, Advocate Partners seeks and attempts to construct a more efficient company through effective engagement or suggest ways to collegiately build or rebuild shareholder value. This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 | AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. “Return Driven Strategy™ is a framework that helps leaders to better analyze, understand, and employ the activities that have been shown to produce superior returns and wealth creation.” Dr. Mark L. Frigo and Joel Litman “Companies with their eye on their 'triple-bottom-line' outperform their less fastidious peers on the stock market" The Economist “Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, generating improved performance, making money and leaving the risks far behind." Sunil Misser, Head of Global Sustainability Practice, PwC PACIFIC CURRENT GROUP LIMITED (ASX:PAC) - THE POISONED CHALICE 2016-10-25T05:10:45Z pacific-current-group-limited-asx-pac-the-poisoned-chalice Pacific Current Group Limited (ASX:PAC) – The Poisoned Chalice The Investment in Northern Lights Boutiques - Where Are They Now? The Poisoned Chalice – the Northern Lights Boutique Portfolio – Two Years Down the Track When Treasury Group Limited (TRG) and Northern Lights Capital Group (NL) merged on 25 November 2014, Northern Lights brought to the merger 13 funds management businesses, with total funds under management (*FUM) of A$24.2 billion.  In a notice to shareholders, TRG said, “It is expected that the merger will deliver significant strategic and financial benefits to TRG and its shareholders. The transaction is expected to be materially accretive from completion, deliver increased portfolio diversification and strengthen investment and distribution capabilities.” In our view as shareholders, nothing it seems can be further from the truth. Since the tie-up with Northern Lights and BNP Paribas, TRG shareholders have seen close to $200 million wiped off the market value of their Company. The Company needs to say more than just "simplifying the structure"(of its own making), will cure the $200 million of lost shareholder value!  Hollow sounding statements by a Company saddled with types more used to writing obscure private equity term sheets are a weak comparative, to a well articulated strategic imperative.   For the uninitiated, strategic imperatives, also known as strategic plans or business initiatives, are cross–functional in nature. Resources need to be allocated to the highest impact activities, and alignment of all contributing activities needs to be made and which, bear no resemblance to a monopoly type unit, locked up in an opaque trust.  When the merger was first announced, in August 2014, the Northern Lights assets were as follows (all amounts in A$ unless otherwise stated): • Aether  A private equity fund-of-funds focused exclusively on real assets and related sectors. Funds under management stated by TRG: $1 billion. TRG reported in the financial observer on 6 August 2015, Aether represented a third of Northern Lights earnings.  http://www.financialobserver.com.au/articles/treasury-group-deal-widens-us-distribution • AlphaShares  Provider of a range of Chinese equity exchange-traded funds (ETFs), based on the work of the firm’s chief investment officer, author and Princeton professor, Burton Malkiel. Funds under management were stated by TRG: $376 million.  • Blackcrane  Equity manager offering concentrated all-cap global equity funds. Funds under management stated by TRG: $3 million.  • Del Rey  International value-style equity manager. Funds under management stated by TRG: $833 million.  • EAM  Equity manager offering U.S., global and emerging market small-caps and micro-caps. Funds under management stated by TRG: $1.1 billion.  • Elessar  US small-cap specialist equity manager. Funds under management stated by TRG: $112 million.  • Goodhart Partners  London-based specialist multi-product asset manager – Japanese equity and emerging markets equities. Funds under management stated by TRG: $427 million.  • Nereus  Indian-based private equity boutique focused on renewable energy infrastructure. No FUM stated.  • NLAA Hedge fund seeding vehicle. Funds under management stated by TRG: $268 million.  • Raven  Private equity firm focused on asset-based lending.  Funds under management stated by TRG: $254 million.  • Seizert  US equities specialist. Funds under management stated by TRG: $5.7 billion. TRG reported in the financial observer on 6 August 2015 Seizert represented 41% of Northern Lights earnings.  • Tamro US small cap equities specialist.  Funds under management stated by TRG: $2.2 billion. TRG reported in the financial observer on 6 August 2015 Tamro represented 10% of Northern Lights earnings.  • WHV Investment Management LLC An intermediary investment platform, providing access to US mutual fund structures, in-house and external manager strategies. Funds under management stated by TRG: $11.9 billion.  TRG reported in the financial observer on 6 August 2015 WHV represented 17% of Northern Lights earnings.  Almost two years down the track, let’s check in on the status of this boutique portfolio.  • Aether Investment Partners LLC (100% equity?)  Considered one of the five core boutiques in the PAC portfolio, Aether’s FUM has grown by 50 per cent, to $1.5 billion. Aurora Trust owns 100 per cent of Aether’s ordinary equity. However, there may be other types of securities on issue or undisclosed liabilities. Aether’s contribution to PAC’s earnings, are unknown.  Website: http://www.aetherip.com/ SEC Registration and ownership:  https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=149742 • AlphaShares LLC (31.03% equity) The Company’s office in Walnut Creek CA USA is closed and the phone is disconnected. http://www.alphashares.com/index.html AlphaShares licenses its four proprietary indices – the AlphaShares China Technology Index, AlphaShares China Small Cap Index, AlphaShares China Real Estate Index and AlphaShares China All Cap Index – to Guggenheim Investments, which uses them in four New York Stock Exchange-listed exchange-traded funds (ETFs), namely the Guggenheim China Technology ETF (NSYE Arca ticker CQQQ), Guggenheim China Small Cap ETF (NSYE Arca ticker HAO), Guggenheim China Real Estate ETF (NSYE Arca ticker TAO), Guggenheim China All-Cap ETF (NSYE Arca ticker YAO). All FUM seems to belong to Guggenheim Investments which presumably pays a licence fee to use the AlphaShares indices?  AlphaShares is named in the Aurora Trust FY16 accounts as being one of the Trust’s “portfolio companies” of which “changes in the assumptions used in establishing the appropriate carrying values” contributed to the Trust’s $121.4 million worth of impairments. The Trust recorded a $3.03 million write-down for AlphaShares: the accounts give the level of ownership of AlphaShares as 31.03 per cent. The Aurora Trust FY16 annual report lists a 31.03 per cent ownership interest in AlphaShares – but AlphaShares as a firm appears to be defunct. The telephone number given on its website at http://www.alphashares.com/ has been disconnected. The most recent press release on the website was posted in September 2011; the most recent newsletter is dated March 2013. All of the personnel named on the website are now at new firms.  In any case, as mentioned above, the “FUM” of $376 million claimed in the Treasury Group ASX release was never FUM of Treasury/Pacific Current: it was the FUM of Guggenheim Investments.  Alphashares contribution to PAC’s revenue and earnings are unknown Website: http://www.alphashares.com SEC Registration: Terminated 31 March 2011 https://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=143881 • Blackcrane Capital LLC (25% equity) Still owned (25 per cent), Blackcrane is listed as one of the “growth” boutiques of the group.  At 30 June 2016 its FUM was $350 million – up one-hundred-fold since the merger. Blackcrane’s contribution to PAC’s revenue and earnings are unknown Website:  http://blackcranecap.com/ SEC Registration: https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=165017 • del Rey Global Investors LLC (*31.25% equity) Del Rey is closed for business? del Rey seems to have disappeared from the portfolio. It was last mentioned in a FUM update announced to ASX on 29 July 2015, which stated that in the quarter to 30 June 2015 there had been “net US retail outflows of $168 million primarily due to outflows at del Rey,” with the additional statement that “Aurora’s economic interest in del Rey’s results is not material to the portfolio overall.” Three months later, in the FUM update for the quarter to 30 September 2015 there was no mention of del Rey.  Prior to the Northern Lights/Treasury Group merger, NLCG owned 25 per cent of del Rey Global Investments. Gerald W. Wheeler, co-founder of del Rey, and at the time, its chief operating officer and chief compliance officer, brought an action in the Superior Court of California in October 2014, suing Northern Lights Capital Partners LLC and Northern Lights Capital Group LLC for breach of contract, and sued Treasury Group Limited claiming “intentional interference with contractual relations,” claiming he had a Right of First Offer (ROFO) with respect to any contemplated sale of del Rey’s Common Units, and that NLCG breached this obligation by entering into a merger agreement with Treasury Group without first providing Wheeler with an opportunity to exercise his ROFO.  The intention of NLCG and Treasury Group to merge was publicly announced on or about 5 August 2014: Wheeler claimed that he was unaware of it until a conference call with NLCG co-founder Paul Greenwood on or about 6 August 2014. This suit was served on NLCG in November 2015. The suit was dismissed in September 2015. It does not appear that Treasury Group Limited/Pacific Current Limited shareholders were ever informed of the filing of the suit, or its dismissal. Presumably being sued is material news? The del Rey matter raises serious disclosure questions. Website:  * https://www.brightscope.com/financial-planning/firm/65189/Del-Rey-Global-Investors-LLC/ SEC Registration: Terminated https://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=152872 • EAM Global Investors (EAM) LLC (Nil Equity) With a non-equity ownership structure EAM is listed as one of the “growth” boutiques of the group. On 25 March 2016 FUM of $108 million was recorded with the SEC. At 30 June 2016 PAC disclosed its FUM was $440 million and was listed as having a value of $14.5 million.  EAM, it seems to us, never had anything like the $1.1 billion of FUM TRG told its shareholders there was in the merger announcement on 5 August 2014 and raises serious disclosure questions. EAM’s contribution to PAC’s earnings and income are unknown. Website: See EAM Global Investors investment product(s) list @ http://www.eaminvestors.com/ SEC Registration: https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=170870 Filings: http://www.newestfilings.com/227483-eam-emerging-markets-small-cap-fund-lp • Elessar Investment Management LLC (0%equity?) Sold? No disclosure to PAC shareholders about business having been sold.  In January 2015, Elessar – which press reports at the time said managed US$66 million – was bought by Emerald Asset Management, Inc., an investment management holding company with about US$3.2 billion in assets. TRG/PAC shareholders were never told that this had happened.  Elessar’s contribution to PAC’s earnings and income are unknown. The Elessar sale raises disclosure questions. Website: See Emerald notice of acquisition http://www.teamemerald.com/news/elessar-investment-management-team SEC and State Registrations: Terminated between the years 2012 thru 2015 https://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=137797 • Goodhart Partners LLP (18.81% equity) Still owned (18.81 per cent) through Northern Lights Capital Partners (UK) Limited (See SEC doc dated 30 August 2016)? Not listed by PAC as a core boutique or a growth boutique. Presumably Goodhart is one of the “other” boutiques, combined, which have total FUM of $2.56 billion as at 30 June 2016. In a brochure dated August 2016, Goodhart gave its assets under management (AUM) figure as US$702.04 million. Goodhart’s contribution to PAC’s earnings and income are unknown. Website:  http://www.goodhartpartners.com/ SEC Registration:  https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=281566 • Nereus Capital LLC (50% economic interest?) On 21 August 2015, Treasury Group and Northern Lights Capital Partners announced a joint investment, of an undisclosed amount, in a bespoke investment vehicle, Nereus Capital Investments (NCI). The announcement read that “Aurora will make a small initial equity capital investment in NCI, but will provide a contingent commitment of up to US$25 million, which can be called no sooner than the sixth anniversary of the signing of the deal,” that is, August 2021. http://www.asx.com.au/asxpdf/20150821/pdf/430p6kxmys40hg.pdf On Nereus’ website at www.nereuscapital.com, no staff members are listed, no telephone number is given and the most recent of what press articles carried dates from August 2014. There is no indication of FUM – or indeed, if there is any.  In the Aurora Trust accounts, the Nereus investment has been written down by $25.7 million over FY15 and FY16 – by $11.2 million in FY16 – and has a negative mark-to-market valuation.  Nereus’s contribution to PAC’s earnings and income are unknown. There are serious disclosure questions about this investment. Website:  www.nereuscapital.com SEC Registration:  None • Northern Lights Alternative Advisors LLP (NLAA) (20% equity) The firm was established as Buick Capital Partners, in 2009, and was renamed to Northern Lights Alternative Advisors (NLAA) in 2014, when Northern Lights Capital Group (NLCG), acquired a minority stake. Still owned (20 per cent). The Aurora Trust recorded a $369,815 write-down for NLAA in FY16. There is no indication of FUM. Website:  http://nlaa.com/ UK Companies House: https://beta.companieshouse.gov.uk/company/OC341896/filing-history NLAA’s contribution to PAC’s earnings and income are unknown. SEC Registration: None • Raven Capital Management LLC (25% equity) Raven was listed as one of the “growth” boutiques of the group.  At 30 June 2016 its FUM was $760 million, which has tripled since the merger.  The sale of the Raven interest was announced to the ASX on 17 October 2016 in questionable fashion after PAC’s Aurora Trust wrote off $1.2 million in receivables due from Raven and recorded a $9.6 million write-down against the investment in FY16.  There are serious questions to be answered about Raven. None more so than about the write down of asset value and writing off of current receipts. Website: http://www.ravencm.com/ SEC Registration: https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=164755 • Seizert Capital Partners LLC (Equity?) As previously reported to PAC’s shareholders, the PAC Aurora Trust owns 50 per cent of the ordinary equity in Seizert, together with preference shares that give entitlements to a share of Seizert’s income (current position unknown).  The US equities specialist was touted as one of the jewels in the crown of the Aurora Trust-owned boutiques, and a core boutique holding. But FUM has struggled, down from $5.7 billion when brought into Aurora Trust (as a Northern Lights boutique) to $4 billion. As a result, Aurora Trust has written down the carrying value of Seizert by $85.3 million at 30 June 2016. Seizert Capital Partners was heavily promoted to Treasury Group/Pacific Current shareholders as a high-quality equities manager around which the combined business would be built. Founder Gerry Seizert was introduced at the 2015 AGM as Tim Carver took shareholders through the basis of building a business with Seizert.  However, at 30 June 2016, the board tells Pacific Current shareholders that because of outflow of funds under management at Seizert, the carrying value of Seizert has to revised down by $76 million. By the time the Aurora Trust accounts are released this has become $85.3 million – representing the write-off of more than half the value of Northern Lights’ entire contribution to the merger, in less than two years.  This is after Treasury Group shareholders effectively paid out the US$48 million loan with which Northern Lights had bought Seizert – Aurora Trust used the proceeds of the sale of (Treasury Group boutique) RARE Infrastructure to pay this debt.  The Pacific Current FY16 annual report states that “the biggest challenge we faced during the year were headwinds at Seizert. The decline in Seizert’s FUM has been brought on by recent underperformance and the declining appetite for active US equity strategies.” It goes on to say that, “with the benefit of hindsight, we clearly overpaid for this asset, and the attrition in Seizert FUM has offset much of the progress being made across the broader portfolio.” Ord Minnett the broking house which covers PAC stated in its research report dated 1 September 2016: “Assessment of Seizert – removed from SOTP  We have assessed Seizert’s performance across its funds, finding under-performance on one, three and five terms for all. We have cut our expected profit for the manager materially for FY17 and removed it from our sum-of-the-parts.” Seizert’s contribution to PAC’s earnings and income are unknown. Website:  http://www.seizertcapital.com/ SEC Registration: https://www.adviserinfo.sec.gov/IAPD/content/ViewForm/crd_iapd_stream_pdf.aspx?ORG_PK=108954 • TAMRO Capital Partners LLC (24% equity) SEC Registration terminated on 21 march 2016 raises disclosure questions.  Still owned (24 per cent), presumably TAMRO is one of the “other” boutiques, which have total FUM of $2.56 billion as at 30 June 2016. The Aurora Trust recorded a $1.7 million write-down for TAMRO in FY16. Tamro’s contribution to PAC’s earnings and income are unknown. Website:  http://tamrocapital.com/contact.html SEC Registration: Terminated 21 March 2016.  https://www.adviserinfo.sec.gov/IAPD/content/viewform/adv/Sections/iapd_AdvIdentifyingInfoSection.aspx?ORG_PK=144764&FLNG_PK=03E404140008018003DF842005A56619056C8CC0 FINRA Broker Registration: Not Licensed?  http://brokercheck.finra.org/Search/GenericSearch • WHV Investment Management LLC (0% equity) WHV was a profit-share arrangement with an intermediary investment platform, so it never had $11.9 billion of FUM to bring to Aurora Trust: it was more like funds under advice (FUA) or at best a funds distribution arrangement (FDA), which are very different things. In any case, the WHV investment of $16 million was written off by Aurora Trust on 30 June 2015, just seven months after the economic interest was acquired. In the FY15 Annual Report of Treasury Group, shareholders were told that the company’s share of the WHV write-down was $10.8 million. Website: Reflects wind up.  http://www.whv.com/ SEC Registration: Terminated 29 July 2016  https://www.adviserinfo.sec.gov/IAPD/IAPDFirmSummary.aspx?ORG_PK=107214 https://www.adviserinfo.sec.gov/IAPD/content/viewform/adv/Sections/iapd_AdvScheduleASection.aspx?ORG_PK=107214&FLNG_PK=04B398B400080184043FCC9005E36595056C8CC0 In summary, the assets brought into the merger by Northern Lights have given the Aurora Trust – and by extension, the merged entity of Pacific Current Limited – just under $137 million worth of impairments, in less than two years, while the net FUM went backwards. Some of that should never actually have been stated as FUM. The revenue margin on FUA situations is very different to that on FUM.  The due diligence conducted by Treasury Group Limited on its proposed merger partner(s), seem to us, as being extremely poor – that is, if any due diligence was conducted at all!  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ We have asked the Company for information and have been told by PAC's Corporate Counsel and CCO operative, we have no right to ask or see.  As a constructivist equity investment manager, ASI will be engaging with the board and executive of Pacific Current Limited more earnestly to suggest strategic, operational and governance changes that it believes could help the broader stock market to understand better the Pacific Current Limited business, and thus begin to redress the steep valuation discount currently being applied. ASI maintains that both Pacific Current Limited and Aurora Trust are, as constituted at present, deliberately opaque with respect to their accounts and the operating performance of their assets, to the extent that shareholders cannot discover the true economic performance of their investment in Pacific Current Limited. Thus shareholders cannot have any confidence in the board and management of Pacific Current Limited with respect to redressing the dismaying loss of shareholder value since the company struck what ASI believes to have been a poorly thought-out merger. ASI has also questioned the scope of the company’s audit, and the independence of the auditors, given the related advisory fees paid to the firm in 2014-2015. ASI will engage with Pacific Current Limited in a constructive manner. It will continue to seek answers to specific questions that have been put to the Company which has been mostly ignored and others as they arise. ************ About ASI ASI is a Melbourne-based independent investment management firm that provides institutional and sophisticated investor clients with customised alternative investment strategies. The firm’s senior investment team uses its unique, company-specific, value-oriented investment approach, with a strong focus on equity special events and credit opportunities. ASI’s approach is focused on the preservation of capital through extensive and rigorous investment analysis on a position and portfolio basis. ASI is the manager and adviser to the Advocate Partners Constructivist investment strategy. Shareholder constructivism is about advocating an owner’s perspective in relation to how a public company is governed and operated, in order to build the conditions necessary for its equity value to appreciate. Disclaimer This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. Advocate Strategic Investments Pty Ltd - ABN: 77 101 691 598 - AFSL 224560 Level 27, 101 Collins Street Melbourne, VIC 3000, Australia  e: info@advocatesi.com.au  t: +61 3 9653 9083 f: +61 3 9653 7373 Treasury Group Limited, Pacific Current Group Limited, ASX, PAC, Reuters, AAP, Northern Lights Capital Partners, NLCG Distributors, Northern Lights Midco, BNP Paribas Capital Partners, Laird Norton Company, AFR, Australian Financial Review, Australian Securities Exchange, Advocate Partners, Advocate Strategic Investments, Michael de Tocqueville, Constructivism, Shareholder Activist, twitter, LinkedIn, Aurora Trust, Aurora Investment Management, Invest Smart, Personal Investor, Australian Shareholders Association, www.finnewsnetwork.com.au, www.paccurrent.com/  Pacific Current Group Limited (ASX:PAC) Questions to the Company for the Auditor 2016-10-23T23:05:38Z pacific-current-group-limited-asx-pac-questions-to-the-company-for-the-auditor Questions to the Auditor of Pacific Current Group Limited and Entities  Mr. Declan O’Callaghan Partner Assurance & Advisory Deloitte Touche Tohmatsu (Deloitte)  The questions are in advance of Pacific Current Group Limited’s (PAC) Annual General Meeting (AGM) which is to be held in Melbourne on 27 October 2016. The questions to the Auditor are submitted the Company Secretary of PAC under sec 250PA of the Corporations Act. 2001 (Cth) and are relevant to: - The contents of the Auditor’s Report for FY 2015 and FY 2016; or - The conduct of the audit in relation to the financial report to be considered at the 2016 AGM: sec 250PA(1). The Annual Report 2016 http://paccurrent.com/wp-content/uploads/2016/09/Annual-Report-2016.pdf The Trust Accounts 2016 http://paccurrent.com/wp-content/uploads/2016/10/30-June-2016-Trust-FS-Final-signed.pdf Questions specific to PAC’s FY2015 & FY2016 Auditor’s Reports On 25 November 2014 Treasury Group Limited (TRG), now called Pacific Current Group Limited (PAC), executed a merger and vended $288 million dollars of shareholders’ funds (equity and cash) into a Managed Investment Trust called Aurora Trust, along with a collection of interests associated with USA- and French-based PAC directors Paul Greenwood, Tim Carver (retired), Jeff Vincent of Northern Lights LLC (NL), Gilles Guerin of BNP Paribas (BNP) and others (NL Group). The NL Group investment vehicle that joined its interests with PAC in Aurora Trust is called Northern Lights Capital Partners LLC (NLCP). (BNP separated its interest from NLCP on the merger execution date.) In an announcement by TRG/PAC, shareholders were told that the following advisers had been appointed to provide services and advice in relation to the merger with the NL group and BNP: 1. non-audit services, Deloitte Touche Tohmatsu (Deloitte);  2. legal services, Herbert Smith Freehills (Freehills); and  3. corporate advisory services, Gresham Partners (Gresham). The corporate fees attached to the merger are numbered in the millions of shareholder dollars. Since the merger was executed, PAC shareholders have seen $177 million dollars of the $288 million in shareholders funds’ that they contributed to what is now regarded as a questionable merger destroyed. Question 1. There had been significant growth in the provision of non-audit services by auditing practices to audit clients throughout the 1990s, in both Australia and overseas. The Report on the Independence of Australian Company Auditors (Ramsay, 2001) (“Ramsay Report”) cites statistics which indicate that for SEC audit clients in the United States, the ratio of accounting and auditing revenues to consulting revenues fell from 6:1 in 1990 to 1.5:1 in 1999 (para 5.76.) The same trend is evident in Australia. The results of an Australian Securities & Investments Commission (ASIC) survey concerning auditor independence of the Group of 100* companies indicate: - the widespread provision of non-audit services (particularly taxation advice) to major corporates by audit practices;  - that audit firms earn substantial fees for providing non-audit services and on average, these account for almost 50% of total fees. (Fee dependency by auditing and   accounting practices is increasingly becoming an issue, but is not expressly regulated by the Corporations Act): ASIC Media Release, dated 16/01/2002. The non-audit services, the provision of which may compromise independence, include the preparation of accounting records and financial statements; valuation services; internal audit services; IT systems services; temporary staff assignments; acting for or assisting an audit client in the resolution of a dispute or litigation; legal services; recruiting senior management for an audit client; and corporate finance and similar activities. The extent to which the provision of non-audit services compromises auditor independence has yet to be determined with any degree of certainty, despite the substantial amount of research and analysis published on this issue (see Part 8 of the Ramsay Report). Those who oppose the provision of non-audit or consultancy services by auditors argue that: - they create circumstances leading to a conflict of interest because the audit practice is serving two different sets of clients: management in the case of; - non-audit services, and the audit committee, shareholders and others who rely on the audited financial reports, in the case of audit services; - a prohibition on the provision would not prevent an audit practice from providing non-audit services, only their provision to audit clients; - the system of compensation or reward within the audit practice may adversely impact upon the integrity of the audit. This might occur where the success in marketing an audit firm’s consultancy services is a significant factor in the practice’s compensation, promotion and reward system. The skills in cross-selling consultancy services are not generally consistent with the requirement for an auditor to exercise professional skepticism. * Australia’s peak body for CFOs and senior finance executives, drawn from the nation’s major private and business enterprises. - What were, are and continue to be\ the scope of non-audit services provided by Deloitte in relation to the TRG/PAC merger? - What were the level of non-audit fees paid to Deloitte in relation to its merger advice? - Are there currently outstanding fees due to Deloitte for non-audit fees and if so, what is the total amount of these? Question 2. Freehills provided legal and advisory services on the TRG/PAC merger. - Can the Auditor tell shareholders what were the services Freehills provided in relation to the merger and what fees were paid to it? Question 3. Gresham provided corporate advisory services on the TRG/PAC merger. - Can the Auditor tell shareholders what were the services Gresham provided in relation to the merger and what fees were paid to it? Question 4. In relation to the merger by TRG/PAC with the NL Group and BNP as recorded in the merger documents and the 2015 and 2016 financial accounts, can the auditor tell us: - What was the scope of services the Deloitte Auditor was asked to perform by TRG/PAC and the AT? What were the fees paid to the Auditor for FY 2015 and FY 2016? Are there currently outstanding fees due to the Auditor and how much are these? Question 5. William Blair is a global investment banking and asset management firm and is based in Chicago. The company acted as the exclusive financial advisor to Northern Lights Capital Group (NLCG) in connection with its merger with Australia-based Treasury Group (ASX:TRG) for the A$193 million in assets to be merged.  William Blair also provided strategic merger advice for NLCG’s pending merger with Treasury Group and arranged US$46 million of financing in support of NLCG’s contemporaneous acquisition of two boutique asset managers. The merger was announced by TRG to the Australian Securities Exchange (ASX) on 5 August 2014 and executed on 25 November 2014. - Can the Auditor assure PAC shareholders that the value of A$193 million in assets packaged up by William Blair and merged was thoroughly tested? - Can the Auditor explain to PAC shareholders, in detail, the terms, conditions, penalties and the specific application of funds that relate to the US$46 million-dollar debt? - Can the Auditor explain an additional debt of US$4,700,000 which Medley disclosed in the MEDLEY CAPITAL CORP FORM 10-Q (Quarterly Report) Filed 02/09/15 for the Period Ending 12/31/14. See… http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=10461670 Question 6. Can the Auditor provide shareholders with details about: - Who managed the merger due diligence process?  -Which service providers conducted the due diligence process for the TRG/NL merger?  - What did the due diligence consist of and was it exhaustive having regard to NL Group and BNP merger-introduced liabilities?  - Did the due diligence process raise concerns, serious or otherwise. by any of the participating advisers which included Deloitte the non-audit service provider? If so, what did, for example, Deloitte say?  - Did the Auditor enquire about enterprise and strategic risk to TRG/PAC? If so, of what did the risk enquiry consist?  - Did any of merger advisers, including Deloitte non-audit, indicate that the merger terms disadvantaged TRG and its shareholders? If so what were they? Was this raised with TRG/PAC and what was the response?  - Who advised TRG/PAC to establish a Managed Investment Trust (MIT) and why?  - Did the NL Group and BNP give extensive representations and warranties and indemnities over the assets and liabilities packaged up by William Blair for the TRG/PAC merger and if so what were they?  - Do those representations and warranties and indemnities survive closing? - Was the transaction an asset merger only with understood liabilities being assumed (and no successor liability concerns)?  - Did or does TRG/PAC have representations and warranties insurance over its merger with the NL Group and BNP? - Who were the named signatories on the due diligence sign off for the merger?  - Who were the named signatories agreeing the execution of the merger?  - TRG/PAC was a debt-free company before the merger. Current liabilities now exceed current assets. In the Auditor’s opinion, is the shareholders’ company TRG/PAC (and its interest in the AT) now at risk of failure? Question 7. The merger created a common board between TRG/PAC and the trustee of the merger vehicle Aurora Trust, namely Aurora investment Management (AIM). Given that the same directors (then and now) comprise the board of both TRG/PAC and AIM (for Aurora Trust), please advise how you as the company’s Auditor satisfied yourself that the board of TRG/PAC had satisfied itself in respect of: - The market value of the assets TRG/PAC vended into Aurora Trust? - The market value of the assets NL Group and BNP vended into Aurora Trust? - Risk scenario analysis (stress testing)? - The appropriate apportionment, then and into the future, of the units in Aurora Trust issued to TRG/PAC, NL Group and BNP, given that the Trustee of Aurora Trust assumed the indebtedness and liabilities of the NL Group and BNP entities Northern Lights MIDCO LLC [MIDCO], Northern Lights Capital Group LLC [NLCG], NLCG Distributors LLC [NLCGD] Northern Lights Asset Management LLC [NLAM], WHV Investments LLC [WHV], Northern Lights Alternatives LLC [NLA], Northern Lights Alternative Advisers LLP [NLAA] and Northern Lights Ventures LLC in relation to the assets vended into the AT? Question 8. TRG shareholders were told on 5 August 2014 their company was proposing a merger which executed on 25 November 2014. They were then told on 31 August 2016 it was now a joint venture arrangement as distinct from a merger. - With information now at hand, how can shareholders be sure that the TRG merger was never a merger, but instead was a “busted takeover?” A “busted takeover” is a highly leveraged corporate buyout that is contingent upon the selling off of some of the acquired company's assets or one’s own. A busted takeover can occur when an acquired company's assets are sold, or capital raised, in order to meet the cost of acquisition. The assets of the acquiring company or the one being acquired may be used together as collateral for the financing required for the deal to go through. Once the target company is acquired, some of its assets are sold in order to pay back a portion of the funds that the acquiring company used to provide or finance the transaction. The acquiring company must properly evaluate the target company's assets to confirm that the sale of the assets will adequately cover the debt. - Can the Auditor explain why the merger has now been renamed a joint venture, and what is the purpose for doing so?  - Can the Auditor assure PAC’s shareholders, from its experience, that their company did not participate in a busted takeover as described, and give reasons why this is not the case? Question 9. We refer the Auditor to his 2015 and 2016 Reports to the members of TRG/PAC and the specific heading within the report about "Remuneration Report". - From the audit on remuneration, did you as the Auditor undertake an analysis of or include and disclose the payments or entitlements earned by TRG key management personnel [KMP] or directors for tasks and or benefits obtained from either Aurora Trust or AIM? - If so, why are these sums not disclosed within the Remuneration Report? - And if there were any such payments, what were the amounts and to whom were they paid? Question 10. Did the Auditor enquire whether any of the remuneration disclosed in the Remuneration Reports related to services provided or benefits received by the TRG KMP or TRG Directors from Aurora Trust or AIM? - If not, why were these services not included in the Remuneration Report?  - And if so, to whom were payments made and in what amount? Question 11. ASIC is calling on companies to improve the disclosure of executive and director remuneration arrangements. The call follows the release of the results of its review of 50 remuneration reports drawn from 300 of Australia’s largest companies for the year ended 30 June 2011. The new report concludes that some companies still need to provide more effective remuneration reports, in accordance with Section 300A of the Corporations Act 2001, so that shareholders clearly understand the rationale for the directors’ adoption of those remuneration arrangements. PAC was until recently a top 300 company listed on the ASX. - Can the Auditor assure PAC’s members that the company meets best practice in relation to executive and director remuneration arrangements that are easily understood by the ordinary shareholder, and explain how it meets best practice? And if not, why not? Question 12. In a white paper produced by Thomson Reuters titled “Seven Steps for Effective Enterprise Risk Management”. Mismanagement of strategic risks has been shown to be a major cause of loss of shareholder value. In the report by the Institute of Management Accountants referred to earlier, Evolution of Risk Management -Enterprise Risk Management: Frameworks, Elements and Integration, two studies are cited as analysing value collapse. One study by Mercer Management Consulting found that 10 per-cent of the Fortune 1000 lost 25 per-cent of their value within a one-month period. Another study, by Booz Allen Hamilton, suggested the primary events triggering the loss of shareholder value were strategic and operational failures. - Can the Auditor assure PAC’s members from observations and discussions with management that the Auditor is comfortable with how the company manages and deals with strategic risk, and explain how it does so? And if not why not? Question 13. A copy of the FY 2016 Aurora Trust (AT) Financial Report to Pacific Current Group Limited (PAC) members was recently lodged with ASX. The report, which was signed on 3 October 2016 by the chairman of the trustee’s directors, included items and figures relating to Aurora Trust’s 2015 annual report. PAC’s members have never been provided with nor seen a copy of Aurora Trust’s 2015 financial report. - On page 15 of the Aurora Trust 2016 financial report accounts, reference is made to an item described as Y- Redeemable preference units for the amount of $18,591,500. Can the Auditor tell members in plain English, and provide detail about, what preference unit relates to and to whom was the money paid? - Can the Auditor explain why PAC’s members never received a copy of the Aurora Trust 2015 financial report? Question 14. FY 2016 Financial Statements to Pacific Current Group Limited (PAC) Members, Directors’ Report, signed as at 31 August 2016. And the Aurora Trust Financial Report dated 3 October 2016. Note 2(z) at page 50 of PAC’s FY 2016 Financial Statements states that the liabilities brought to Aurora Trust by Northern Lights Capital Group LLC and from related shareholders Northern Lights Capital Partners LLC with BNP Paribas Capital Partners LLC and others, (the Northern Lights Group) were understated by $8.8 million (US$7.0 million), so that PAC has now recognised an additional loss of $5.6 million. The Aurora Trust 2016 financial report states on page 60: “ÅThe AFS investments and trade and other payables contributed by Northern Lights were understated by A$8.9 million (US$7.0 million). As a consequence, there was an adjustment to the fair value of the AFS investment securities acquired from Northern Lights, indicating the fair value of one specific AFS investment security’s fair value was not supportable at period end.” Can the Auditor tell us? - What was the nature of both the understated $8.8 million? (PAC annual report) or $8.9 million (Aurora Trust annual report) liability?  - Why the due diligence process, did not pick up on the understated liability?  - How was the understated liability found and by whom?  - To which NL Group/BNP AFS investment security did the understatement relate? - Who were the Treasury Group Limited (TRG) people or consultants (premerger) who were charged with the responsibility of conducting proper due diligence and stress testing on the NL Group/BNP assets and entities?  - Who were the TRG persons who verified and signed off on the assets and (liabilities) which were ultimately vended into Aurora Trust? - Who was responsible for the failure to recognise the liability in the first place? - Have all current and non-current, assets and liabilities been disclosed to PAC’s members in a reasonable way, under ASX continuous disclosure rules, in order for them to assess the true value of the company?   -Are there any other matters relating to PAC’s financial relationship with the NL, BNP assets, related parties and others, which have not been disclosed to PAC’s shareholders? Was PAC misled about the NL and BNP liabilities vended into Aurora Trust?  - If so, has PAC disclosed to the auditor a remedy?  - Has the auditor been told whether PAC is seeking compensation from NL, BNP and others? Question 15. Deferment of the Trust X redeemable preferred units (X-RPUs) On 15 September 2016, the Trustee determined to defer payment of US$42 million redemption price for Aurora Trust’s class X-RPU, until at least November 2017 or later. Roughly A$50 million = almost half of PAC’s current market capitalisation. This is a big number, relative to PAC’s reduced market capitalisation. Is this US$42 million an actual liability (albeit now deferred) or will it be reduced/not payable if the NL assets (now largely written down/off) prove to be worthless? This is what PAC shareholders currently do not know – but it is highly material! The deferment is permitted under Aurora Trust’s governing documents if the Trustee determines that certain legacy Northern Lights alternatives boutiques are unlikely to outperform certain legacy Treasury Group alternatives boutiques based on a formula. - Can the Auditor explain to members in plain English, the formula/particulars of preference share terms and the conditions and rights to redeem these? This is necessary information to provide an informed market. The Trustee’s decision to defer payment is based on a variety of factors, including the determination that the requisite condition for payment of the redemption amount has not been met. As the Trustee could decide to defer payment to November 2017, Aurora Trust has classified the liability as a non-current liability. Question 16. Treasury Group Investment Services Limited (TIS) is a responsible entity(RE) and third-party service provider. Shareholders were told in 2013-14 that TRG intended to substantially grow this business. However, on 15 September 2016, the PAC board of directors approved a resolution to restructure the capital of TIS to return $4.5 million to Aurora Trust. TIS is required to maintain a certain net tangible assets (NTA) dollar value level in accordance with the Corporations Act in acting as a RE. The NTA is linked to the total funds under management (FUM) in the number of registered managed investment schemes (MIS), and as the number of MIS has reduced, so has the dollar value of the NTA requirement. As a result, TIS will return surplus cash and implement an equal capital reduction as defined in section 256B(2) of the Corporations Act 2001, on the following terms:  (a) present total capital will be reduced by $4.5 million, being the surplus cash available within TIS;  (b) there being one class of share capital in TIS and a sole member (Aurora Trust), the capital reduction will apply to ordinary shares in proportion to the number of shares held by Aurora Trust; and  (c) $4.5 million will be returned to Aurora Trust following the Reduction. - Can the Auditor tell member shareholders if TIS’s return of capital is a need for cash at Aurora Trust level – in effect, stripping out TIS reserves?  - What reasons were given by PAC’s management to the Auditor if any, about killing off of TIS’s potential third party business opportunities? Question 17. On 20 April 2016 Pacific Current Group Limited (PAC) announced the sale of its 20% interest in Octis Asset Management Pte. Ltd (Octis) to Jerome Ferracci, Octis Managing Director. PAC will recover the value of all invested capital as a result of the sale and expects no abnormal gains or losses in relation to the price received. The sale was completed pursuant to a clause within the original investment contract. When investing in Octis in 2012, the equity manager had funds under management of $50m and this is now $25.3m. In the same FY PAC’s Aurora Trust’s combined investment in the Orion, Nanuk and Trilogy was realised. However, unlike Octis, no financial details relating to the disposal have been disclosed to PAC’s shareholders. - Can the Auditor tell shareholders what were the financial details relating to the disposal of PAC’s and the Aurora Trusts interest in Orion, Nanuk and Trilogy? Question 18. Deloitte is the Australian Financial Service Licence Auditor to Pacific Current Group Limited’s (PAC) wholly owned subsidiary Treasury Group Investment Services Limited (TIS)(AFSL) 227326 and its authority holder Aurora Investment Management Pty Ltd (AIM) Authority Number 000473374 which act as Trustee for The Aurora Trust (AT). PAC owns units representing 65% of the Aurora Trust. The shareholder ASI is investigating its legal rights in relation to events at PAC over the last 3 years relating to the merger with Northern Lights and the creation of the Aurora Trust. It appears to ASI that PAC may have been misled as to the value of certain assets vended into the Trust by Northern Lights, especially the entities known as Seizert Capital Partners LLC, AlphaShares LLC, Elessar Investment Management, Inc., Del Rey Global Investors LLC and others. ASI has asked PAC to produce for inspection by ASI the following documents in its possession relating to the merger of interests associated with, PAC Directors and Executives (past 7 present) Jeff Vincent, Gilles Guérin, Tim Carver, David Griswold Paul Greenwood, Andrew Turner and Jack Swift and their related parties Laird Norton LLC, BNP Paribas, WHV Investments LLC, Northern Lights Capital Partners LLC, Northern Lights Midco LLC, Northern Lights Capital Group LLC, NLCG Distributors LLC, Northern Lights Asset Management LLC, NLCG Distributors LLC, and Northern Lights Alternatives LLP that we know of: - - A copy of the investment management agreement between AIM and AT; - Copies of any sub-advisory agreements entered into between AIM, related parties, and others;  - A copy of the AT Trust agreement; and - A copy of any or all (unitholder) partnership agreements, agreed by AT unitholders, their related parties, and beneficiaries. The Company has refused to provide or tell shareholders details about abovementioned agreements nor confirm who may be or are related parties between the PAC, the Trustee, the Trust and within the business assets held by the Trust. - Can the auditor tell shareholders the entities and individual who make up the related parties? - Is the Auditor aware of the existence of any investment management or sub advisory agreement having being executed by PAC, TIS or AIM the Trustee? Can the auditor provide details? - Can the Auditor tell PAC shareholders what are the authorised investments of the Aurora Trust? - Is the Auditor aware of the existence of any Aurora Trust agreement? And if so can the auditor provide details about the agreement to shareholders and how it may affect them?  - Is the Auditor aware of any partnership agreements, agreed to by AT unitholders, their related parties and beneficiaries? And if so, can the auditor provide relevant details about the agreement(s) to shareholders and how they might affect them?  - Can the Auditor explain, what are the fiduciary duties of AIM the Trustee? What can it do or not do?  - Has the Trustee delegated any of its responsibilities? And if so to whom?  - Can the Auditor assure PAC’s shareholders the Trustee and the Trustee's Directors are not, conflicted in any way? In the company of shareholders in attendance at the Company’s forthcoming AGM we look forward to receiving the Auditors answers on the questions raised.  Yours sincerely,  Michael de Tocqueville  Chief Investment Officer  AFSL Responsible Manager 224560 DISCLAIMER ASI is the manager of the Advocate Partners portfolio which holds Pacific Current Group Limited shares. As a Constructivist investor, Advocate Partners seeks and attempts to construct a more efficient company through effective engagement or suggest ways to collegiately build or rebuild shareholder value. This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 | AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. “Return Driven Strategy™ is a framework that helps leaders to better analyze, understand, and employ the activities that have been shown to produce superior returns and wealth creation.”Dr. Mark L. Frigo and Joel Litman “Companies with their eye on their 'triple-bottom-line' outperform their less fastidious peers on the stock market" The Economist “Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, generating improved performance, making money and leaving the risks far behind." Sunil Misser, Head of Global Sustainability Practice, PwC Pacific Current Group Limited (ASX:PAC) - Shareholders Are Urged To Vote Against Excessive Remuneration Payments 2016-10-23T07:51:21Z pacific-current-group-limited-asx-pac-shareholders-are-urged-to-vote-against-excessive-remuneration-payments Circular to Shareholders of Pacific Current Group Limited (ASX:PAC) To vote no AGAINST the proposed adoption of Resolution 2. The Remuneration Report at the annual meeting (AGM) of Pacific Current Group  to be held Thursday, 27 October 2016 commencing at 10:00am at the offices of Herbert Smith Freehills, Level 42, 101 Collins Street Melbourne. Dear Fellow shareholder  Enclosed within this letter you will find information that will put you in a better position to vote on resolutions being put forward for your approval at the AGM.  The AGM provides an opportunity for the Company’s shareholders (“Shareholders”) to communicate with the directors and I sincerely hope you will take such opportunity.  Should you be unable to attend the meeting in person, I strongly encourage you to exercise your right to vote by appointing a proxy. The ordinary business of the AGM includes the consideration of the 2016 Annual Report and Financial Statements, the appointment of auditors and approval of their fees, the appointment of directors, approval of dividend and approval of aggregate emoluments of directors.  ASI REPRESENTS LONG-STANDING PACIFIC CURRENT GROUP SHAREHOLDERS  The financial performance of Pacific Current Group since its questionable merger with Northern Lights has been nothing short of a financial debacle for the company’s long-term shareholders.  We believe that Pacific Current needs to change.  Shareholders should express their dissatisfaction at the AGM by voting no “against” the adoption of the remuneration report.  If 25% of eligible voters (i.e. excluding directors and key management personnel) vote “AGAINST”, there would be a “First Strike,” meaning the next Remuneration Report must explain whether shareholders’ concerns have been taken into account, leading to the possibility of a spill resolution after that.  This document should be read in its entirety. If after reading this Circular to Shareholders, you have any questions or doubts as to how you should vote, you should contact your stockbroker, solicitor, accountant or professional adviser.  BACKGROUND  We urge Shareholders to vote against the absurd Pacific Current Group Limited remuneration report, to be considered and voted on at the 2016 Annual General Meeting of Members.  Shareholders have seen $288 million of their hard-earned equity transferred into a questionable Managed Investment Trust, only to see nigh on half of those same funds written off in less than two years.  The Aurora Trust’s losses as per its financial statements as at 30 June 2016, stand at more than $140 million dollars! (you only need read page 9, of the Aurora Trust Consolidated Financial Statements 2016 to get the ugly news).  The Trustees of the Trust have the fiduciary obligation to protect, grow and preserve the Trust’s assets – not oversee their destruction.  In addition to the financial losses attributable to the board’s unsatisfactory stewardship in the same two-year period, shareholders have suffered capital losses, as seen by, the Company’s share price collapse of more than 60%. (See link to the REUTERS chart below, dated 10 October 2016 and select the 3-year chart.)  http://www.reuters.com/finance/stocks/chart?symbol=PAC.AX  Both of these aspects of performance of Pacific Current Limited are extremely alarming to shareholders. Despite this damning indictment a board and executive group made up of the entrenched and their hand- picked supporters is now asking shareholders to reward the Board and key management personnel (KMP) by supporting increases in remuneration. Shareholders have a right to be concerned about the Company’s future under current KMP and Board.  The enormity of losses being experienced by the Company is also reflected in the slashing by 80% of the final dividend to shareholders.  However, in the same period, we saw a massive increase in obscene remuneration payments, devoid of any sensible basis of performance indicators or accountability.  Payments and grants made over the financial years 2015 and 2016 (in 2 years), as disclosed in the Company’s annual report, to: http://paccurrent.com/wp-content/uploads/2016/09/Annual-Report-2016.pdf  Tim Carver, CEO, who received $2,209,847 – which included a cash payment of $824,421 Paul Greenwood, the CIO, who received $2,542,631 Joe Ferragina, the finance director and COO, who was paid $1,479,462 Andrew McGill, the MD (since retired), who received $765,000 These manifestly excessive payments were followed up by the non-executive directors having their salaries increased by a massive 42%, in the same disastrous period covering financial years 2015 and 2016.  ASI contends that the current Board of Pacific Current Limited should not be entrusted with rewards sought by insiders under the Company’s remuneration policy.  ASI believes that shareholders need to be in a position to reclaim performance-linked remuneration elements that were paid to (or vested on) executives on the basis of the losses suffered and cited herein.  We also strongly support mechanisms to facilitate the recovery of amounts paid to executives based on financial statements subsequently found to be materially misleading, as being in the best interests of shareholders.  It is appropriate commercial practice for a company to negotiate such an outcome and reflects good corporate governance.  The Pacific Current share price chart above tells the story more plainly, and from the perspective of shareholders, more poignantly. ISSUES REQUIRING URGENT ATTENTION AND A FULL GOVERNANCE REVIEW  The removal of entrenched and preferentially appointed Directors and executives, who have presided over PAC’s financial destruction. A Governance investigation into the excessive and unaccountable remuneration and level of fees paid to the Board, the Executive Directors, other executives who remain unknown, accountants, auditors, legal and corporate advisers. A Forensic financial investigation into PAC’s questionable merger with Northern Lights (the assets and liabilities packaged up by William Blair). https://www.williamblair.com/sitecore/content/News-Items/2014/November/25/William-Blair-Advises-Northern-Lights.aspx  A wide-ranging Strategic and Enterprise risk management review to enable execution and restoration of shareholder value The employment of an Australian based, strategically risk-focused Board and Management team armed with a “Return Driven Strategy” to grow the Company for the benefit of all shareholders.  “The people who presided over the destruction of shareholder value are not necessarily the ones qualified enough to restore value.” PAC Shareholder  SUMMARY Pacific Current Group Limited has lost tens of millions of shareholder funds invested through its suspect merger with Northern Lights.  Pacific Current over rewards its board and executives in a way which is manifestly devoid of accountability.  It is time for a change at Pacific Current Limited – voting “no” “against” the Remuneration report is the first step in shareholders reclaiming control over the performance of their company.  A vote "against" the adoption of the remuneration report is the most effective way to communicate your dissatisfaction as to the current and on-going performance of the company and its questionable governance.  We respectfully ask that you carefully consider your position, and if you agree with our concerns or have other concerns, please vote against the remuneration report. Yours faithfully, Michael de Tocqueville Chief Investment Officer AFSL Responsible Manager 224560 Pacific Current Group Limited Shareholder DISCLAIMER ASI is the manager of the Advocate Partners portfolio which holds Pacific Current Group Limited shares. As a Constructivist investor, Advocate Partners seeks and attempts to construct a more efficient company through effective engagement or suggest ways to collegiately build or rebuild shareholder value. This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 | AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. “Return Driven Strategy™ is a framework that helps leaders to better analyze, understand, and employ the activities that have been shown to produce superior returns and wealth creation.” Dr. Mark L. Frigo and Joel Litman “Companies with their eye on their 'triple-bottom-line' outperform their less fastidious peers on the stock market" The Economist “Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, generating improved performance, making money and leaving the risks far behind." Sunil Misser, Head of Global Sustainability Practice, PwC Pacific Current Group Limited (ASX:PAC) - Circular to Shareholders 2016-10-13T02:21:53Z pacific-current-group-limited-asx-pac-circular-to-shareholders Circular to Shareholders of Pacific Current Group Limited (ASX:PAC) To vote no AGAINST Adoption of the Remuneration Report at the annual meeting (AGM) of Pacific Current Group to be held Thursday, 27 October 2016 commencing at 10:00am at the offices of Herbert Smith Freehills, Level 42, 101 Collins Street Melbourne     Dear Fellow Shareholder Enclosed within this letter you will find information that will put you in a better position to vote on resolutions being put forward for your approval at the AGM. The AGM provides an opportunity for the Company’s shareholders (“Shareholders”) to communicate with the directors and I sincerely hope you will take such opportunity. Should you be unable to attend the meeting in person, I strongly encourage you to exercise your right to vote by appointing a proxy. The ordinary business of the AGM includes the consideration of the 2016 Annual Report and Financial Statements, the appointment of auditors and approval of their fees, the appointment of directors, approval of dividend and approval of aggregate emoluments of directors. ASI REPRESENTS LONG-STANDING PACIFIC CURRENT GROUP SHAREHOLDERS The financial performance of Pacific Current Group since its questionable merger with Northern Lights has been nothing short of a financial debacle for the company’s long-term shareholders. We believe that Pacific Current Group needs to change. Shareholders should express their dissatisfaction at the AGM by voting no “AGAINST” the adoption of the remuneration report If 25% of eligible voters (i.e. excluding directors and key management personnel) vote “AGAINST”, there would be a “First Strike,” meaning the next Remuneration Report must explain whether shareholders’ concerns have been taken into account, leading to the possibility of a spill resolution after that. BACKGROUND We urge Shareholders to vote AGAINST the absurd Pacific Current Group Limited remuneration report, to be considered and voted on at the 2016 Annual General Meeting of Members. Shareholders have seen $288 million of their hard-earned equity transferred into a questionable Managed Investment Trust, only to see nigh on half of those same funds written off in less than two years. The Company's Aurora Trust’s losses as per its financial statements as at 30 June 2016, stand at more than $140 million dollars! (you only need read page 9, of the Aurora Trust Consolidated Financial Statements 2016 to get the ugly news). See link to the confusing Trust Accounts http://paccurrent.com/wp-content/uploads/2016/10/30-June-2016-Trust-FS-Final-signed.pdf The Trustees of the Trust have the fiduciary obligation to protect, grow and preserve the Trust’s assets – not oversee their destruction. In addition to the financial losses attributable to the board’s unsatisfactory stewardship in the same two-year period, shareholders have suffered capital losses, as seen in the Company’s share price collapse, of more than 60%. (See Reuters chart via link below, dated 10 October 2016.) http://www.reuters.com/finance/stocks/chart?symbol=PAC.AX Both of these aspects of performance of Pacific Current Limited are extremely alarming to shareholders. Despite this damning indictment, a board and executive group made up of the entrenched and their hand- picked supporters is now asking shareholders to reward the Board and key management personnel (KMP) by supporting increases in remuneration. Shareholders have a right to be concerned about the Company’s future under current KMP and Board. The enormity of losses being experienced by the Company is also reflected in the slashing by 80% of the final dividend to shareholders. However, in the same period, we saw a massive increase in obscene remuneration payments, devoid of any sensible basis of performance indicators or accountability. Payments and grants made as disclosed in the Company's annual report (see link) to: http://paccurrent.com/wp-content/uploads/2016/09/Annual-Report-2016.pdf Tim Carver, CEO, who received $2,209,847 – which included an unsubstantiated payment of $824,421 Paul Greenwood, the CIO, who received $2,542,631 Joe Ferragina, the finance director, and COO, who was paid $1,479,462 Andrew McGill, the MD (since retired), who received $765,000 These manifestly excessive payments were followed up by the non-executive directors having their salaries increased by a massive 42%, in the same disastrous period covering financial years 2015 and 2016. It's an absolute disgrace and a mockery to Good Governance ASI contends that the current Board of Pacific Current Limited should not be entrusted with rewards sought by insiders under the Company’s remuneration policy. ASI believes that shareholders need to be in a position to reclaim performance-linked remuneration elements that were paid to (or vested on) executives on the basis of the losses suffered and cited herein. We also strongly support mechanisms to facilitate the recovery of amounts paid to executives based on financial statements subsequently found to be materially misleading, as being in the best interests of shareholders. It is appropriate commercial practice for a company to negotiate such an outcome and reflects good corporate governance. The link to the Pacific Current share price chart above tells the story more plainly, and from the perspective of shareholders, more poignantly. ISSUES REQUIRING URGENT ATTENTION AND A FULL GOVERNANCE REVIEW The removal of entrenched and preferentially appointed Directors and executives, who have presided over PAC’s financial destruction Investigation into the excessive and unaccountable remuneration and level of fees paid to the Board, the Executive Directors, other executives who remain unknown, accountants, auditors, legal and corporate advisers Forensic financial investigation into PAC’s questionable merger with Northern Lights (the assets and liabilities packaged up by William Blair) A wide-ranging strategic and Enterprise risk management review to enable execution and restoration of shareholder value The employment of an Australian based, strategically risk-focused Board and Management team armed with a “Return Driven Strategy” to grow the Company for the benefit of all shareholders. “The people who presided over the destruction of shareholder value are not necessarily the ones qualified enough to restore value.” PAC Shareholder SUMMARY Pacific Current Group Limited has lost tens of millions of shareholder funds invested through its suspect merger with Northern Lights. Pacific Current over rewards its board and executives in a way which is manifestly devoid of accountability. It is time for a change at Pacific Current Limited – voting “no” “AGAINST” the Remuneration report is the first step in shareholders reclaiming control over the performance of their company. A vote "AGAINST" the adoption of the remuneration report is the most effective way to communicate your dissatisfaction as to the current and on-going performance of the company and its questionable governance. We respectfully ask that you carefully consider your position, and if you agree with our concerns or have other concerns, please vote against the remuneration report. If you have already voted you can amend your vote online through Computershare. See link to notice of meeting and voting form which contains the Computershare contact details. http://paccurrent.com/wp-content/uploads/2016/09/2016-ANNUAL-GENERAL-MEETING-AND-RETIREMENT-OF-DIRECTORS.pdf   Yours faithfully, Michael de Tocqueville Chief Investment Officer AFSL Responsible Manager 224560  Pacific Current Group Limited Shareholder DISCLAIMER ASI is also the manager of the Advocate Partners portfolio which holds Pacific Current Group Limited shares. As a Constructivist investor, Advocate Partners seeks and attempts to construct a more efficient company through effective engagement or suggest ways to collegiately build or restore shareholder value. This Press Release has been prepared by Advocate Strategic Investments Pty Ltd ABN 77 101 691 598 | AFSL 224560 (ASI) for the information of shareholders. This release has been prepared from information available to ASI on the date of release and from publicly available sources. ASI has not verified this information and no responsibility is accepted for the accuracy, currency or completeness of this information. This release must not be taken to be financial product advice in respect of shares in the Company. “Return Driven Strategy™ is a framework that helps leaders to better analyze, understand, and employ the activities that have been shown to produce superior returns and wealth creation.” Dr. Mark L. Frigo and Joel Litman “Companies with their eye on their 'triple-bottom-line' outperform their less fastidious peers on the stock market" The Economist “Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, generating improved performance, making money and leaving the risks far behind." Sunil Misser, Head of Global Sustainability Practice, PwC