Mahar]ika Investments Corporation (MIC)

Section 7. Establishment

The MIC is an independent corporate body that shall be a vehicle for mobilizing and utilizing the MIF for investments in transactions that will enable the Fund to reap returns on investments (ROIs) while contributing to the overall goal of reinvigorating job creation and poverty reduction by steering the economy back to its high-growth path.

The MIC shall govern and manage the Fund in accordance with the objectives and purposes set forth in this Act, and it shall adhere to internationally-accepted standards, such as the “Santiago” Principles.

Section 8. Function of the MIC

The MIC shall:

• a) Establish a diversified portfolio of investments in the local and global financial markets and in other assets that promote the objectives of the Fund
• b) Manage and invest the initial and future contributions to the Fund in accordance with this Act
• c) Accept and manage investment mandates whose investment purpose is to increase income for development goals
• d) 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
• e) Implement international best practices in investing and managing assets in accordance with the “Santiago” FTinciples for SWFs or similar principles as may be adopted by the Board.

Section 9. Financial Resources

Each of the founding GFIs shall invest equity to start up the Fund with an initial investment of 250b pesos

• GSIS : 125b
• SSS : 50b
• LBP : 50b
• DBP : 25b

Each founding GFI may be allowed to subsequently increase its respective investments above its equity contribution.

In addition, the National Government shall initially contribute the amount of 25b to the Fund. It may annually contribute additional funds subject to availability of funds for the purpose.

Subsequent annual contributions to the Fund shall be provided as follows:

• [i) Bangko Sentral ng Pilipinas: foreign currency (FCY) equivalent Of 10% of the remittances from the Overseas Filipino Workers (OFWs); 10% coming from the annual contribution of the Business Processing Outsourcing (BPO) sector
• (ii) Philippine Amusement and Gaming corporation (PAGCOR): 10% from its gaming proceeds
• (iii)
• (iv) General Appropriations Act or supplemental Appropriations

Other sources (c.g., special assessments on natural resources, public borrowings, and the like).

Section 10. Expenses Of the Investments

The Board of Directors of the MIC is authorized to disburse from the Fund the expenses of up to 10% of the gross revenue of the immediately preceding year.

For the initial operations of the MIC, the Board of Directors is authorized to disburse for its administrative and operating expenses at a total amount not exceeding ten percent (10%) of its initial capitalization.