Maharlika Investment Corp. Finalizes Investment and Risk Management Framework, Secures Membership in Int’l Organization of Sovereign Wealth Funds

The Maharlika Investment Corporation (MIC) has finalized its investment and risk management framework as well as secured its membership in the International Forum of Sovereign Wealth Funds (IFSWF), giving it authority to begin engaging with investors and gain access to tap global network of experts.

During its 12th Board Meeting presided by Finance Secretary and MIC Chairperson Ralph G. Recto on July 18, 2024, 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.

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.

In addition, the Board approved the MIC Board Protocol, which covers the procedures for conducting Board of Directors meetings, in accordance with RA No. 11954, its Revised Implementing Rules and Regulations, and general principles of good corporate governance.

Meanwhile, the MIC has secured membership in the IFSWF––an international organization setting governance standards for sovereign wealth funds around the world.

The acceptance of the MIC’s application on July 11, 2024 was based on its willingness to endorse, on a voluntary basis, the Santiago Principles, which pertain to the generally accepted principles and practices to ensure the effective operations of sovereign wealth funds globally.

The principles put emphasis on appropriate governance and accountability arrangements as well as sound and prudent conduct of investment practices.

The IFSWF Membership grants the Philippines access to a range of privileges, such as international recognition, networking, and peer learning opportunities.

President and CEO (PCEO) Rafael Jose D. 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 November 3 to 6, 2024.

The Meeting will engage IFSWF members and financial leaders around the world in private networking sessions to discuss key global topics impacting investors today.

Present during the meeting were Department of Finance (DOF) Undersecretary for Privatization and Partnerships Group (PPG) Catherine L. Fong, MIC Regular Director Vicky Castillo L. Tan; MIC Independent Directors Atty. German Q. Lichauco II, Andrew Jerome T. Gan, and Roman Felipe S. Reyes; Development Bank of the Philippines (DBP) PCEO Michael O. de Jesus, and Landbank of the Philippines (LBP) Executive Vice President Carel D. Halog as Alternate Board Member.

You may also read the following related topics:

Maharlika Investment Corporation Eyes Membership in Global Network of Sovereign Wealth Funds
Maharlika Investment Fund (MIF) Act of 2023 or Republic Act No. 11954: What You Need to Know
Bureau of the Treasury (BTr) Issues Maharlika Investment Fund (MIF) Implementing Rules and Regulations