Maharlika Investment Corp. (MIC), the operator of the Philippines’ first sovereign wealth fund, is set to introduce “thematic sub-funds” as a new strategy for fundraising and investment.
MIC President and CEO Rafael Consing revealed this plan during an interview on PTV’s Pre-SONA Special with RJ Nieto. Thematic funds, which focus on specific sectors such as infrastructure, energy, and manufacturing, will be a key feature of this initiative.
By launching these thematic sub-funds and issuing bonds, MIC aims to provide retail investors with direct opportunities to invest in the Maharlika Investment Fund (MIF). “For example, from MIF, we will create an energy fund that invests in various targets, followed by issuing asset participation certificates,” Consing explained.
However, before these sub-funds are issued, the sovereign wealth fund must complete its initial investment activities. Consing mentioned that MIC expects to be operational by the fourth quarter of this year, with the first investments likely in the renewable energy sector.
In the first half of 2024, MIC is concentrating on organizational setup, with budget refinements by the Department of Budget and Management (DBM) and coordination with the Governance Commission for GOCCs and the Civil Service Commission (CSC). The initial investment focus will be on enhancing the transmission and distribution infrastructure of off-grid islands, forming part of a proposed P35-billion investment for the year.
The MIC is responsible for mobilizing and managing the MIF, guided by Republic Act 11954 and other relevant regulations. It is overseen by a nine-member board, including the Finance Secretary, MIC president and CEO, and leaders from major state-run banks.
The corporation has an authorized capital stock of P500 billion, with an initial capitalization sourced from the national government and the two largest state-run banks. Contributions include P50 billion from the Land Bank of the Philippines, P25 billion from the Development Bank of the Philippines, and P50 billion from national government sources, such as Bangko Sentral ng Pilipinas dividends and PAGCOR income.