MIDTERM Flashcards
(59 cards)
It is the policy of the State to generate,
preserve and grow national wealth, create jobs, promote trade and investments, foster
technological transformation, strengthen
connectivity, expand infrastructure, and achieve
energy, water and food security.
signed by President
Ferdinand R. Marcos Jr. on July 18,
2023.
“Maharlika Fund Act of 2023”.
just like any other
investment funds around the
world, refers to a pool of money
or funds invested to a particular
asset, item, company, or project
with the goal of generating
income or appreciation.
It will be managed by the “Maharlika Investment Corporation.”
Maharlika Investment Fund or
MIF,
is a corporate
investment body that manages the MIF.
Maharlika Investment Corporation (MIC)
It is a 9-member Board of Directors (BOD) which consists of the following:
- Secretary of Finance – as the Chairperson in an ex-officio capacity
- President and CEO of MIC
- President and CEO of the Landbank of the Philippines
- President and CEO of the Development Bank of the Philippines
- Two (2) regular Directors, appointed by the President for a term of
three (3) years - and Three (3) independent Directors from the private sector,
appointed by the President for a term of one (1) year
“as a result of one’s status or position” or “denoting or relating to a member
of a body who holds the role as a result of their status or another position they hold.
*ex-officio capacity-
means “from the office”
Ex officio (latin)-
is an insurance of bondable public officer under the Fidelity Fund
to assure:
Fidelity Bond
are the employees of the government of
the Philippines whose duties performed permits or requires the custody of
funds or properties for which he is accountable be deemed bonded and his
fidelity insured in accordance with Public Bonding Law
The Accountable Officials/Employees
Advisory Committee
Secretary of the Department of
Budget and Management
(DBM)
Secretary of the National
Economic and Development
Authority (NEDA) and
the Treasurer of the Philippines
READ
There will also be a Joint Congressional Oversight
Committee (JCOC) and is composed of
fourteen (14) members from the House of Representatives and the Senate, each having 7 members. It will be
co-chaired by the Chairpersons of the House on Banks and Financial Intermediaries and the Senate Committee on Banks, Financial Institutions
and Currencies.
The MIC shall quarterly submit all investments, portfolio,
and audit reports of the MIF to the JCOC.
Aside from the strict examination from numerous bodies, an Audit Commitee, the Commission on Audit, and an internal and external auditors will conduct
regular audit within the MIC and MIF. The internal auditor shall be appointed by the BOD, and will provide audit reports regularly. While the external auditor shall
come from an internationally recognized auditing firm to conduct annual audit for three (3) consecutive years.
Where will the initial funds of MIF come from?
500 billion
Preffered share= 125 to be made available
for subscription of
national government
exept SSS, GSIS,
Philhealth, OWWA,
PVAO
common share= 375 (to be subscribe by National Government)
LBP 50
DBP 25
GOv 50
Total 125
READ
The MIF will have an initial funding of P500 billion equivalent to five (5) billion shares.
- Bangko Sentral ng Pilipinas – In two years, upon the effectivity of MIF Bill, 100
percent of BSP’s total declared dividends not exceeding P50 billion. - Government share in PAGCOR – For a period of five (5) years, the PAGCOR and
all its government-owned gaming operators shall give 10 percent of its revenues, provided that the share intended for the Universal Health Care will
not be diminished. - Department of Finance - Privatization and Management Office
- Royalties and special assets
- Properties, real and personal
- Landbank of the Philippines – P50 billion, not exceeding 25 percent of their
net worth - Development Bank of the Philippines – P25 billion, not exceeding 25 percent
of their net worth
NOTE !
It can also be noted that according Article III, Section 12 of the law, that Government-Owned or Controlled Corporations (GOCCs) providing the social security
public health insurance of the public such as Social Security System (SSS), Government Service Insurance System (GSIS), PhilHealth, Pagibig Fund, Overseas
Workers Welfare Association (OWWA), and Philippine Veterans Affairs Office (PVAO) are absolutely prohibited
to invest in MIF.
Where will MIF be invested?
Cash, foreign currencies, metals, and other tradeable commodities;
Fixed income instruments issued by sovereigns, quasi-sovereigns and
supranational;
Domestic and foreign corporate bonds;
Equities;
Islamic investments such as Sukuk bonds;
Joint Ventures or Co-Investments, mergers, and acquisitions;
Mutual and exchange-traded funds;
Infrastructure projects;
Programs and projects on health, education, research, and innovation,
Investments that promote sustainable development;
Loans and guarantees to Filipino or foreign investors
Investments in real estate, including agro-industrial estates and
economic zones, estate infrastructure and other development projects
_______is an Islamic financial certificate,
similar to a bond in Western finance,
that complies with Islamic religious
law commonly known as ______
sukuk
Sharia
Within_______________ after the bill was
signed into law, the Treasurer of the
Philippines together with the Government
Financial Institutions, will create the
Implementing Rules and Regulations (IRR) of
this act that will state how the act will be
implemented.
ninety (90) days
means combined holding of many kinds
of financial securities i.e. shares, debentures, government bonds, units and other financial assets.”
is a combination of various
instruments of investment.
It is also a combination of
securities with different
risk-return characteristics.
“Portfolio”
refers to the various
assets of an investor which are to be considered as
a unit.
It is not merely a collection of unrelated assets but a carefully blended asset combination within a unified
framework
investment portfolio
is the art and science of
selecting and overseeing
a group of investments
that meet the long-term
financial objectives and
risk tolerance of a client,
a company, or an
institution
means selection of securities
and constant shifting of the portfolio in the light of varying attractiveness of the constituents of the
portfolio.
includes portfolio planning,
selection and construction, review and evaluation of securities.
Portfolio Management
is an important aspect of portfolio
revision.
is a crucial factor while switching
between shares and bonds. Investors may switch from bonds to shares in a bullish market and vice-versa in a
bearish market.
Timing
Objectives of Portfolio Management
Stability of Income:
Capital Growth:
Marketability:
Liquidity i.e. nearness to money:
Diversification:
Favorable Tax Status (Tax Incentives):
Security not only involves keeping the principal sum
intact but also keeping intact its purchasing power
intact.
Stability of Income
means protection for investment against loss under reasonably variations.
Safety
This can be attained by reinvesting in growth securities
or through purchase of growth securities.
Capital Growth:
