Maharlika Wealth Fund on Maharlikanism

Maharlika Investments Fund Act

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Introduced by:

Ferdinand Martin G. Romualdez
Manuel Jose ‘Mannix’ M. Dalipe
Ferdinand Alexander A. Marcos
Stella Luz A. Quimbo
Yedda Marie K. Romualdez
Jude A. Acidre

The MIF would give Government Financial Institutions (GFIs), including the GSIS, SSS, LBP, DBP, the opportunity to:

Definitions

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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.

Mahar]ika Investments Corporation (MIC)

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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.

Investments

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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

Governance

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Section 15. Board of Directors

The MIC shall be governed by a Board of Directors composed of 9 members:

6 members from the founding GFIs, membership seats allocated in proportion to their investments
2 Independent Directors
The secretary of Finance as the official representative from the National Government

The representatives of the founding GFIs shall be their respective Presidents.

Exemptions and Privileges

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Section 24. Exemptions from the GOCC Governance Act Of 2011.

The President of the Philippines recognizes the strict requirements set for the GFls forming the MIF in that they have higher standards of knowledge and expertise in the fields Of finance, economics, risk, and governance, and that there is a need for flexibility to operate, function, employ and retain employees to ensure the successful implementation Of the goals Of the MIF.

Distribution of Net Profits

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Section 1. Distribution of the Net Profits Of the MIC

The MIC shall be exempt from Republic Act No. 7656, “Dividends Law of 1994.”