Investments

Section 11. Allowable Investments

Subject to strict compliance with Investment and Risk Management Guidelines, the Board of Directors of the MIC shall authorize the following investments:

• a) Cash, foreign currencies, metals, and other tradeable commodities
• b) Fixed income instruments issued by sovereigns, quasi-sovereigns and supranationals
• c) Domestic and foreign corporate bonds
• d) Listed or unlisted equities, whether common, preferred, or hybrids
• e) Financial derivatives
• d) Islamic investments, such as sukuk bonds
• g) Joint ventures or co-Investments
• h) Mutual and Exchange-traded Funds
• i) Commercial real estate and infrastructure projects
• j) Other investments as may be approved by the Board.

Investments in real estate, infrastructure and other development projects, whether alone or in partnership with other corporate entities shall be limited to National Economic Development

Authority Board - approved major capital projects to ensure that these are in line with the socio-economic development program of the government. Subject to the rules and regulations to be promulgated by the MIC Board, the advice of the Advisory Body shall be sought by the same Board in case of transactions, such as but not limited to, investments and spending that will affect:

• (1) the Balance Of Payments
• (2) monetary aggregates, like those which impact domestic liquidity and reserve money.

Section 12. Investment Policy.

The Board of Directors shall formulate written policies in relation to the following matters:

• a) Directions on the acceptable balance between risk and return of the overall portfolio
• b) Investment policies, mandates, strategies, and guidelines on financing infrastructure projects and other investments
• c) Risk management for the investments
• d) Standards for assessing the investment performance
• e) Matters relating to international best practices for institutional investments
• f) Matters specific to rules and regulations where investments are dorfuciled
• g) Procedural framework and cooperation among investors, including fund commitments, co-investments, voting requirements, exit mechanisms, and other matters pertaining to the pooling of funds and the management thereof
• h) Matters relating to the procedure for assessing, deploying, and liquidating investments
• i) All other matters needed to be discussed to guarantee compliance with the objectives of the Maharlika Investments.

The Board of Directors shall ensure that policies formulated are consistent with the objectives of the Fund, and the same shall be subject to periodic review.

Section 13. Limitations and Sofeguards on the MIF

The management of the MIF shall be subject to a set of investment policies, guidelines, and risk limits, as approved by the Board of Directors, upon due consideration of the recommendations of the Advisory Body. Investment and risk strategies of the MIF shall be in line with the policies and objectives hereunder stated to ensure the long-term viability of the Fund.

Section 14. Fees and Charges on the Establishmeut Of the Maharliha lrrvestmerts Fund

Third paty fees and all charges incurred in connection with the establishment and management of the MIF, such as, but not limited to, custody fees, transaction fees, clearing fees, and management fees payable to external fund managers, shall be charged against the MIF.