Lois Claudine Rosales

Grade 8 - T.Aldrin

Maharlika Wealth Fund, An Investment Vehicle and Economic Driver - Economic Team

The MWF is a sovereign wealth fund which will be used by the government to invest in a wide range of
outlets such as foreign currencies, fixed-income instruments, domestic and foreign corporate bonds,
commercial real estate, and infrastructure projects, among others.

On behalf of the Economic Team, Budget Secretary Pangandaman shared her optimism that the MWF
will help the administration achieve its Agenda for Prosperity.Meanwhile, Finance Chief Diokno noted
that the country should have had the Sovereign Wealth Fund a long time ago to set aside funds for the
future generations.

GSIS President and GM Veloso also believes that a number of key industries in the country can move
forward upon investment in high capital expenditures through the MWF which will, in turn, improve
employment, taxation, and economic activities. Moreover, Veloso allayed fears that the MWF would
follow the same path as the 1Malaysia Development Berhad (1MdB) fund which had a single signatory.
On the contrary, the MWF provides for checks and balances. A total of Php 250 billion startup investment
for the MWF will come from Government Financial Institutions (GFIs) such as the GSIS, SSS, Landbank of
the Philippines, and Development Bank of the Philippines. This will be supplemented by annual
contributions from the BSP, DOF, and other sources.

The Economic Team further assured the public that enough safeguards will be put in place to ensure
accountability and transparency in managing the MWF. These include abiding by the Santiago Principles
of the International Working Group of Sovereign Wealth Funds, and establishing a three-layer
mechanism for checks and balances which feature internal audit, external audit, and finally, examination
and audit by the Commission on Audit. Additionally, there will be an executive department reportorial
requirement which will be implemented together with congressional oversight.

The MWF aims to ensure economic growth by generating consistent and stable investment returns with
appropriate risk limits to preserve and enhance long-term value of the fund; obtaining the best absolute
return and achievable financial gains on its investments; and satisfying the requirements of liquidity,
safety/security, and yield in order to ensure profitability of the GFIs’ respective funds.
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