Maharlika ready to start investing
The country’s first sovereign wealth fund is poised to make its first investment—most likely in renewable energy—after fund manager Maharlika Investment Corp. (MIC) finally approved its investment and risk management framework.
During its 12th Board Meeting on July 18 presided by Finance Secretary and MIC Chair Ralph Recto, the board approved the MIC’s founding principles and framework encapsulating its overall mission, governance structure and high-level investment approach for 2024 to 2028.
READ: Maharlika finalizes investment, risk management framework
“The framework specifically outlines the detailed policies, strategies and risk management practices guiding the MIC’s investment decision-making and portfolio management. As mandated by Republic Act No. 11954, the framework is a prerequisite for the MIC before proceeding with its investments,” the Department of Finance (DOF) said in a statement on Friday.
Energy projects
The country’s first sovereign wealth fund is prioritizing energy projects, for which it wants to raise some $1 billion. It also wants to invest in infrastructure and agriculture.
The fund that is “designed to advance the Philippines’ long-term development goals” likewise plans to invest in the agro-industries industry, particularly in coconut oil mills and refineries.
Article continues after this advertisementThe DOF also said that following the approval of MIC’s membership in the International Forum of Sovereign Wealth Funds (IFSWF), it can begin engaging with investors and gain access to a global network of experts.
Article continues after this advertisementREAD: Maharlika gets P 22.2-B fund for first-year investments
The IFSWF is an organization of global sovereign funds with over 50 members. It aims to implement the Santiago Principles, designed to promote good governance, accountability, transparency and prudent investment practices.
“The IFSWF Membership grants the Philippines access to a range of privileges, such as international recognition, networking and peer learning opportunities,” the DOF said.
MIC President and CEO Rafael Jose Consing, Jr., stressed that with the membership, the MIC is entitled to participate in the IFSWF Annual General Meeting to be held in Oman, Muscat, from Nov. 3 to Nov. 6.
“The meeting will engage IFSWF members and financial leaders around the world in private networking sessions to discuss key global topics impacting investors today,” the DOF added. In addition, the Board approved the MIC Board Protocol, which covers the procedures for conducting Board of Directors meetings, in accordance with RA 11954, its revised implementing rules and regulations, and general principles of good corporate governance.
President Ferdinand Marcos Jr. signed the law establishing the country’s sovereign wealth fund or the Maharlika Investment Fund last July 2023.
MIC has an authorized capital stock of P500 billion and its initial capital of P125 billion came from contributions from the national government, which chipped in P50 billion, the state-owned Land Bank of the Philippines, which contributed P50 billion, with the Development Bank of the Philippines putting in the balance of P25 billion.
