The Maharlika Investment Corporation now has the 'authority to begin engaging with investors and gain access to tap global network of experts' has finalized its investment and risk management framework and has joined an international organization for sovereign wealth funds, bringing it closer to actually launching its Maharlika Investment Fund .
The framework in particular will cover the “detailed policies, strategies, and risk management practices guiding the MIC’s investment decision-making and portfolio management,” according to a Department of Finance press statement. It also details the company’s governance structure and investment approach from 2024 to 2028.
A carefully crafted set of investment policies is key if the MIC wants to shake off fears that the country’s first sovereign wealth fund may be politicized or fall victim to corruption, such as what happened in Malaysia’sMargarita Debuque-Gonzales, a former senior research fellow of government think-tank PIDS, reminded the Filipino public that they “should be the ones monitoring, because this is your fund.
Its application to the IFSWF was approved on July 11, after the MIC expressed its “willingness to endorse, on a voluntary basis, the Santiago Principles.” The Maharlika Fund’salso require audits of the MIC to include an assessment of the implementation of the Santiago Principles, which are a set of internationally accepted best practices for sovereign wealth funds.