Definitions

Section 3. Definitions

• a) Maharlika Investments Fund or MIF is the fund created by this Act
• b) Maharlika Investments Corporation (MIC) is the government-owned and controlled corporation (GOCC) created by this Act to be responsible for the MIF
• c) Founding Government Financial Institutions refers to the GFIs which shall invest equity to start up the MIF
• d) Board of Directors are the governing body of the MIC
• e) Independent Member is a member Of the Board Of Directors coming from the private sector with proven probity, competence and experience in finance, economics, investments, business management, or law
• f) GSIS is the Government Service Insurance System
• g) SSS is the Social Security System;
• h) LBP is the Land Bank of the Philippines;
• i) DBP refers to the Development Bank of the philippines;
• j) Advisory Body is the body established by this Act, providing guidance, counsel and advice to the Board of Directors of the MIC;
• k) DOF is the Department of Finance
• l) NEDA refers to the National Economic and Development Authority;
• m) DBM refers to the Department of Budget and Management;
• n) Funding Sources refers to the initial investment required of the Founding GFls and the National Government to start up the MIF; and
• o) “Santiago” Principles refers to the 24 Generally Accepted Principles and Practices (GAPP) voluntarily endorsed by the International Forum of Sovereign Wealth Funds (IFSWF) members.

The GAPP for Sovereign Wealth Funds (SWFs) are designed as guidelines that assign best practices for the operations of SWFs. They are the rules followed by SWF that promote stability in the global financial system, set proper controls on investment risks, and implement sound governance structure.

ARTICLE 2: Maharlika Investments Fund (MIF)

Section 4. Establishment Of the MIF

The MIF is an independent fund that adheres to the principles of good governance, transparency, and accountability.

The Fund shall be sourced from:

• the investible funds of the country’s top-performing GFIs
• contribution of the National Government.

It shall be used to invest on a strategic and commercial basis to promote fiscal stability for economic development, and strengthen the top-performing GFIs through additional investment platforms that will help attain the National Govemment’s priority plans.

The funds invested by the GFIs shall be exempt from any regulatory restrictions, if invested solely to the MIF.

Section 5. Ownership

The Fund investors shall own the fund in proportion to their shareholdings. These are:

• Founding GFIs
• The National Government
• other fund contributors authorized in this Act.

The Board of Directors, through the Chairperson of the Board and Chief Executive Officer, shall submit periodic reports to the National Government, through the President of the Philippines.

Section 6. Objectives of the MIF

To generate consistent and stable investment returns with appropriate risk limits to preserve and enhance long-term value of the Fund, obtain the best absolute return and achievable financial gains on its investments, and to satisfy the requirements of liquidity, safety/security, and yield in order to ensure profitability.

In pooling the investible funds from the GFls and channeling them to diversified financial assets and development projects, the MIC’s activities shall contribute to a prudent and transparent management of the government resources.