State-run Maharlika Investment Corp. (MIC)—which is targeting ₱25 billion in capital deployment this year—said it is performing in line with its mandate despite being one of the world’s youngest sovereign wealth funds (SWFs).

This comes on the back of the recently published IE University ranking, which placed the country’s first SWF manager 76th out of 109 SWFs.

MIC President and Chief Executive Officer (CEO) Rafael D. Consing Jr. told Manila Bulletin over the weekend that while the ranking is a “useful” data point, it still requires contextualizing SWFs based on when they were established.

Consing explained that the SWF universe “includes institutions with decades or centuries of asset accumulation and compound returns.” He pointed out that MIC is only a three-year-old institution and is one year and six months into capital deployment.

MIC is scaling down its capital deployment target this year to ₱25 billion, according to a document obtained by Manila Bulletin. This year’s target is 28.5 percent lower than the ₱34.9-billion target in 2025.

Consing argued that a more meaningful way to compare SWFs is by how they have progressed since their establishment and how well they are delivering on their mandates, rather than by the size of their assets alone.

“On that measure, we are performing as intended—deploying counter-cyclical capital into sectors aligned with the long-term national interest, generating returns, and remitting value to the national coffers as legislated,” the MIC chief said.

Consing said MIC’s ₱1.4-billion dividend remittance to national coffers this year demonstrates that the model is working. This is half of its full-year 2025 comprehensive income of ₱2.74 billion, which grew from ₱2.68 billion in 2024.

Historical data from the Bureau of the Treasury (BTr) show that this was MIC’s first remittance, but the government-run company has already managed to join the billionaires’ club, or the list of state firms that remit more than ₱1 billion to the national treasury.

“Growth in assets under management (AUM) is a secondary consideration to capital productivity and mandate execution,” Consing said. MIC envisions the fund becoming “world-class” by 2028, coinciding with the year President Ferdinand R. Marcos Jr. steps down from office.

MIC earlier said it would proceed with its investment plans despite heightened uncertainty caused by the Middle East conflict, saying it would deploy capital in a careful and strategic manner.

For this year’s capital deployment target, approved investments pertain to finalized legal commitments rather than mere board approvals.

One hundred percent of “all financially closed investments” must achieve an economic internal rate of return (EIRR) of at least 10 percent, according to the scorecard. This gauges the total net benefits to society or broader economy.

This socioeconomic benchmark is much higher than the corporation’s financial target, which aims to generate a 3.41-percent risk-adjusted return after operating costs.

Recall that MIC’s business income increased by 1.6 percent to ₱2.82 billion in 2025 from ₱2.77 billion in the previous year.

However, operating expenses (opex) surged to ₱478.96 million from ₱93.19 million as MIC entered its second full year of operations and continued strengthening its institutional and operational capabilities.

MIC previously said it would channel investments into energy, infrastructure, agriculture, and mineral extraction and processing. These investments would form part of efforts to build natural buffers for the domestic economy.

As of end-2025, MIC had deployed ₱5.9 billion into strategic investments in Synergy Grid & Development Phils. Inc. (SGP), Makilala Mining Co. Inc. (MMCI), and Asian Terminals Inc. (ATI).

MIC also continued to manage undeployed capital through placements with government financial institutions (GFIs), which generated ₱2.7 billion in interest income during the year.

Until they were deployed, the funds were parked with GFIs such as Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP), as well as the Bangko Sentral ng Pilipinas (BSP) to keep them liquid, secure, and productive.

Under Republic Act (RA) No. 11954, which established the SWF, MIC’s initial capitalization was set at ₱125 billion, consisting of ₱50 billion from Landbank, ₱25 billion from DBP, and ₱50 billion from the national government (NG).