MIC secures membership in global network of SWF

MANILA, Philippines — State-run Maharlika Investment Corp. (MIC) has secured a membership in the global network of sovereign wealth funds (SWF) in a bid to boost transparency and good governance.

Finance Secretary and MIC chairperson Ralph Recto said MIC is now a member of the International Forum of Sovereign Wealth Funds (IFSWF), a voluntary global organization of SWF.

Last March, MIC applied for an associate membership, which is specifically for institutions that are in the early stages of forming their SWF.

Recto said the acceptance of MIC’s application was based on its willingness to endorse the Santiago Principles on a voluntary basis.

The principles put emphasis on appropriate governance and accountability arrangements as well as sound and prudent conduct of investment practices.

As such, MIC’s membership grants the Philippines access to a range of privileges including international recognition, networking and peer learning opportunities.

Associate members are exempt from membership fees and do not have voting rights.

Such is usually granted for up to two years before an institution could apply for full membership, or those that are well-established already.

Since 2009, the IFSWF has been setting governance standards and now represents and facilitates knowledge sharing between approximately half the world’s SWF.

The organization is also mandated to help members implement the Santiago Principles, which pertain to the generally accepted practices to ensure the effective operations of SWF.

The IFSWF aims to help members improve their governance and accountability structures and practices. It also seeks to aid members raise their expected risk-adjusted returns on specific governance, investment and operational issues.

The IFSWF Board is currently composed of officials from the SWF of Morocco, Alaska, Singapore, China and France.