Senate Committee on Banks, Financial Institutions and Currencies chairman Senator Mark Villar projected that a possible 8.6 percent return on equity every year in the next 10 years can be generated by the MIF. 

                                     Senator Mark Villar (Senate PRIB Photo) 
 
Villar, principal author and sponsor of the MIF bill in the Senate, said the estimate is based on studies and some projections, “especially in terms of diversification of funds.”
 
"In order to achive the goals of the MIF, they must diversify the investments. So in line with the objectives, the MIC is envisioned to maintain two major sub-funds; Capital Market Investment Sub-fund and Sectoral Invesment Sub-fund" Villar said. 
 
The objectives of MIF, he pointed out, is to optimize financial returns for the country and accelerate infrastructure development.
 
He said the Capital Market Investment sub-fund will prioritize generation of returns from investments in a diversified portfolio of liquid assets. 
 
The Sectoral Investment sub-fund, meanwhile, will engage in high-return projects that are relevant to country's development.
 
"The Capital Market Investment Sub-fund may consider developed market equities, nominal bonds, emerging market equities, real estate, private equity infrastructure, natural resources, and money market as investment vehicles,” the lawmaker explained. 
 
“For Sectoral Investment Sub-fund, investment sectors to be considered include power, real estate, infrastructure and logistics," he further said.
 
Citing the proposal of the Bureau of Treasury,  Villar said a return on equity may range between 6.51 percent to 10.78 percent, “depending on the blend of placements between the two sub-funds.”
 
"Depending on the blend of placements, we can see a high return on equity. But to be safe and keeping in mind the risks that comes with it, the MIF may be able to get an 8.64% return on equity provided placements between the two funds are equally shared,” he pointed out.
 
The senator said this could help grow the seed fund up to P229-billion by 2023.
 
The Senate minority bloc, composed of Senators Aquilino “Koko” Pimentel III and Risa Hontiveros, and some senators, specifically, Senators Francis “Chiz” Escudero, Nancy Binay and Imee Marcos have expressed their reservations about the measure, which President Ferdinand “Bongbong” Marcos Jr. has certified as urgent.
 
Pimentel has urged Malacañang to veto the bill and return the measure to Congress so ensure that lawmakers can pass a version that can withstand constitutionality issues.