Maharlika Investment Fund
On July 18, 2023, President Marcos, Jr. approved Republic Act No. 11954 or the Maharlika Investment Fund Act of 2023.
The Maharlika Investment Fund (MIF) shall be established by investing national funds, and coordinating and strengthening the investment activities of the country’s top-performing government financial institutions to promote economic growth and development.
The Republic Act created the Maharlika Investment Corporation (MIC) as the sole vehicle for the purpose of mobilizing and utilizing the MIF for investments in transactions in order to generate optimal returns on investments.
Among the functions of the Maharlika Investment Corporation are the following:
1. Establish a diversified portfolio of investments in the local and global financial markets and in other assets that promote the objectives of the Fund;
2. Manage and invest the initial and future contributions to the Fund in accordance with the RA;
3. Accept and manage investment mandates whose investment purpose is to increase income for development goals;
4. Develop and foster skills in finance, economics, risk mitigation, good governance, and other related areas, consistent with the capacity and capabilities build-up of human resources in the industry; and
5. Implement international best practices in investing and managing assets in accordance with the Santiago Principles and other internationally-accepted standards and principles of transparency and accountability.
The Maharlika Investment Fund shall be initially sourced from the capitalization of the MIC, the investible funds of select GFIs and from contributions of the National Government. Government agencies and GOCCs providing for the social security and public health insurance of government employees, private sector workers and employees, and other sectors and subsectors such as SSS, GSIS, PhilHealth, Pag-IBIG Fund, OWWA and PVAO Pension Fund are absolutely prohibited to invest in the MIF.
The objective of the MIF is to promote socioeconomic development by making strategic and profitable investments in key sectors to preserve and enhance long-term value of the Fund.
The Republic Act also outlines the detailed creation of the MIC, the board of directors, types of allowed and prohibited investments, and others.
The full Republic Act may be accessed here.