Maharlika fund eyes P1.8 billion gross returns for 2025

MANILA, Philippines — The Philippines’ sovereign wealth fund, Maharlika Investment Corp. (MIC), aims to achieve P1.78 billion in gross returns, targeting this financial outcome by the conclusion of the current year.

After accounting for all operating expenses, transaction fees and taxes, MIC targets achieving a net return of P1.01 billion by the end of the year, based on the institution’s Strategy Map and Performance Scorecard for 2025.

The net return target is 62.3 percent below what it posted in the wealth fund’s debut year at P2.68 billion.

Additionally, MIC plans to allocate nearly P35 billion in investments to achieve its target, aiming for a net return of P4.09 billion from its overall capital base.

Last month, seasoned investment banker and television host Stephen CuUnjieng was appointed by MIC as an independent director and chair of its investment committee, a pivotal role in guiding portfolio growth strategies and governance oversight.

His responsibilities include reviewing and approving investment proposals, monitoring portfolio performance and managing risks to ensure returns are maximized while staying within the organization’s established risk parameters.

For 2024, the sovereign wealth fund reported total assets of P127.2 billion against just P668 million in liabilities, giving it a strong equity base of P126.6 billion. The government’s P50 billion capital contribution, which would strengthen the fund’s financial position, is still pending.

MIC also disclosed minimal investments of P174.6 million in equity instruments, highlighting its initial portfolio-building stage. Capital expenditures totaled P118.6 million, primarily allocated to office leases and equipment.

The wealth fund’s president and CEO Rafael Consing Jr. has said that MIC has forged a partnership with ACWA Power, a global energy company partially owned by Saudi Arabia’s sovereign wealth fund, to develop renewable energy projects in the Philippines.

The partnership is designed to deliver sustainable electricity to underserved and off-grid island communities across the country.