Maharlika Corp. finalizes investment, risk framework — DOF

The Maharlika Investment Corp. (MIC), the state-run firm managing the country's first sovereign wealth fund, has finalized its investment and risk management framework, the Department of Finance (DOF) said Friday.

In a statement, the DOF said the MIC's Board has approved the company's founding principles and framework encapsulating its overall mission, governance structure, and high-level investment approach for 2024 to 2028 during its 12th Board Meeting presided by Finance Secretary and MIC chairperson Ralph Recto on July 18, 2024.

The DOF said 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 (RA) 11954, the framework is a prerequisite for the MIC before proceeding with its investments.

The Finance Department added that the MIC's Board has approved its protocol, which covers the procedures for conducting Board of Directors meetings, in accordance with RA 11954, its Revised Implementing Rules and Regulations, and general principles of good corporate governance.

The MIC has also secured membership in the International Forum of Sovereign Wealth Funds (IFSWF)—an international organization setting governance standards for sovereign wealth funds around the world.

The DOF said the acceptance of the MIC's application to the IFSWD 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," it said.

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

Last February, MIC president and chief executive officer Rafael Consing Jr. said the sovereign wealth fund was set to make its first investment by the end of the year, likely to be in the renewable energy sector. — VDV, GMA Integrated News