Maharlika Investment Fund shows modest returns amid questions over its purpose

As the three-year term of Maharlika Investment Corporation’s first president draws to a close, Finance Undersecretary Ma. Angela "Angel" Ignacio is being eyed as his successor amid concerns over the fund’s performance. Since its creation in July 2023, the Maharlika Investment Fund has deployed roughly a third of the P75 billion capital contributed by state banks, retaining the majority in cash and short-term instruments.

Notable transactions this year include a P15 billion short-term loan to Petron for fuel imports and the acquisition of additional shares in Asian Terminals, though neither has demonstrably expanded infrastructure. The fund reported a net profit of about P1.24 billion, driven mainly by interest on cash holdings, and paid a P1.376 billion dividend to the government, while unrealized gains account for a large share of reported returns.

Operating expenses reached P170.8 million, with a sizable portion spent on professional services, and the president and CEO draws a salary of P2.5 million per month. Critics argue that the fund’s reliance on low-risk, low-return placements fails to justify its existence as a catalyst for new development.