THE Maharlika Investment Corp. (MIC) will likely start becoming active in the market by the first quarter, once it works out an investment strategy and as the industry becomes familiar with the people running it, Finance Secretary Benjamin E. Diokno said.
Mr. Diokno told reporters that while the Maharlika Investment Fund is expected to be operational by the end of the year, market activity will take somewhat longer.
“What investors are looking for now are the faces behind the MIC, as well as the strategy of where the funds will be allocated,” he said.
The sovereign wealth fund will be managed by the MIC, which will have authorized capital stock of P500 billion. Its initial funding of P125 billion will come from the National Government, the Land Bank of the Philippines (LANDBANK), and the Development Bank of the Philippines (DBP).
The MIC’s board is composed of the president and chief executive officer (CEO), the president and CEO of LANDBANK and DBP, two regular directors and three independent directors. The Finance Secretary will also serve as chairman in ex-officio capacity.
The application period to fill MIC’s president and CEO and independent and regular director positions closed on Sept. 27.
“The Advisory Body will then transmit the final list of nominees to the Office of the President on or before Thursday, Oct. 12, after which the President of the Philippines will appoint the best candidates for the respective positions,” Mr. Diokno said.
The Advisory Body is composed of the secretaries of the Budget and the National Economic and Development Authority, as well as the national treasurer.
In July, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 11954, which created the sovereign wealth fund.
The implementing rules and regulations for the fund were released in August. They took effect on Sept. 12. — Luisa Maria Jacinta C. Jocson