The Maharlika Investment Fund (MIF), the first sovereign wealth fund of the Philippines, is set to be operational by the end of the year, following a P50 billion ($1 billion) contribution from the Land Bank of the Philippines. The bank said on Friday that it had remitted the investment to the fund through the Bureau of the Treasury on Thursday, September 14, 2023.
Finance Secretary Benjamin Diokno, who also chairs LandBank, expressed confidence in the fund's progress. "We are witnessing a growing interest in investments in the MIF from multilateral financial institutions and foreign investors. With the regulatory requirements in place, and after securing the seed capital from state-run institutions, we are confident that the Fund will be operational by year-end," he stated.
Under the MIF act, LandBank and the national government are each required to contribute P50 billion to the fund. Additionally, a further P25 billion will be provided by the Development Bank of the Philippines.
LandBank President and CEO Lynette V. Ortiz assured stakeholders that there are adequate safeguards in place under the MIF Act to protect their investments. Ortiz said: "The MIF law has put in place adequate safety nets to ensure full disclosure and transparency in the management of the Fund, as well as the integrity and professionalism of the management team that will be entrusted to lead the Maharlika Investment Corporation."
The implementing rules and regulations for MIF were released in late August 2023, and since then, applications have been received from interested managers of the fund. The finance department confirmed that regulatory requirements are now in place for MIF's operation.
The Maharlika Investment Corp. (MIC), which will oversee this sovereign investment fund, is expected to be fully operational before this year ends after receiving its initial capitalization from LandBank.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.