Maharlika Investment Corp. (MIC), the Philippines’ sovereign wealth fund (SWF) manager, is targeting ₱3.3 billion in core net income this year, supported by steady dividend income as it accelerates capital deployment to about ₱35 billion by year-end.

MIC Vice President for Finance Marvin M. Martija reported during a media roundtable last week that the fund posted ₱1.3 billion in core net income in the second quarter, with total comprehensive income reaching ₱2.7 billion due to substantial fair value gains.

This compares with total comprehensive income of ₱1.3 billion in the first quarter and was largely driven by the performance of Synergy Grid and Development Philippines Inc. (SGP). “We acquired SGP at ₱11.46 per share, and it closed at ₱28.50 per share as of June 30,” Martija noted, adding that these changes directly reflect growth in the fund’s net asset value (NAV).

MIC President and Chief Executive Officer (CEO) Rafael D. Consing Jr. expressed optimism over the fund’s financial performance this year, citing the inflow of dividends and a steady stream of income from fixed-income investments.

“We’ve already started receiving dividends, and the projected dividend income from our investee companies has come to fruition,” Consing said. “We’re also generating interest income from our investments. Since these are fixed-income instruments, the returns are easily calculable, so they should not pose any issue.”

Martija said MIC’s main revenue sources include dividend income from Petron Corp. and gains from its first major capital recycling transaction, which involved transferring a ₱600-million loan facility related to its investment in Makilala Mining Co. Inc. to an Indian industrial group.

Consing noted that a notable addition to the company’s profit and loss (P&L) statement this year is equity earnings from an investee company.

He said the inclusion of equity earnings from Asian Terminals Inc. (ATI) marks a major evolution in the fund’s income structure.

“We invested in ATI where we have a board seat,” Consing said. “Under International Financial Reporting Standards (IFRS) rules, we’re now able to equitize, meaning we now own 11.9 percent of ATI’s earnings, which will now be reflected in our net income. That did not exist before.”

To reach its ₱35-billion deployment target, up 40 percent from the initial ₱25-billion goal, MIC is catching up on projects deferred from the previous year.

The fund has already deployed ₱16 billion in Petron and ₱8 billion in ATI, bringing total capital deployment to approximately ₱24.7 billion.

Looking ahead, MIC is prioritizing high-impact sectors such as energy and agriculture. Consing said capital deployment for infrastructure upgrades in Mindoro is expected to be “a little less than ₱5 billion,” while the agricultural sector could receive investments of up to ₱10 billion.

“Power precedes progress,” Consing said, reinforcing the fund’s “intergenerational” strategy, which focuses on basic infrastructure rather than “faddish” trends.

Despite paying out ₱2.8 billion in dividends, MIC has increased its NAV from an initial ₱75 billion to ₱79 billion. This represents approximately ₱6.8 billion in total value created since the fund’s inception three years ago.

While confident about the fund’s trajectory, Consing acknowledged external pressures, noting that government spending and inflation-driven declines in consumption could weigh on the broader economy.

Nevertheless, MIC remains committed to its core investment risk framework, which strictly prohibits investments in weapons, alcohol, and gaming.