In a bid to allay fears about the Maharlika Wealth Fund (MWF), former banker turned Government Service Insurance System (GSIS) chief Jose Arnulfo “Wick” Veloso said there will be a “risk-free return” on investments put in the proposed portfolio.
“We are investing in this proposed Maharlika fund which is going to give us a risk-free return based on the proposal in Congress,” Veloso said Tuesday (December 6) during a media briefing with President Ferdinand Marcos Jr.’s economic team.
“In the course of time, the investment will yield us better than what is the opportunity ahead of us as investors in GSIS,” he added, noting that the controversial pooled fund will provide “more opportunities for us to earn.”
The P250-billion capital for the MWF, a brainchild of Marcos’ cousin, House Speaker Martin Romualdez, will initially be sourced from GSIS, Social Security System, Development Bank of the Philippines, and Land Bank of the Philippines.
The Bangko Sentral ng Pilipinas will also be required to put a portion of its dollar reserves into the MWF, with the aim of increasing investment returns to fund new government projects.
The MWF’s creation has drawn opposition from business groups, saying it is ill-timed since the country is grappling with ballooning debt and high inflation.