SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
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First Regular Session 
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' 
-i.T 19 .'\i0 59
sena:
S.B. No. l t212
RFCi£iVi;i) by
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT
ESTABLISHING A PHILIPPINE SOVEREIGN WEALTH FUND PROVIDING FOR THE
MANAGEMENT, INVESTMENT, AND USE OF PROCEEDS OF ITS ASSETS, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Over the last few years, the Philippines has managed to transform itself from 
the "Sick Man of Asia" to "Asia's Rising Star." It has impressed the international 
community with its robust economic growth, supported by solid monetary and fiscal 
policies, current account surpluses, relatively low external debt, high foreign 
exchange reserves, and strong overseas remittance flows from year to year. It is 
considered the fastest growing economy in Southeast Asia and second fastest in 
Asia, next only to China.
Given its recent significant economic gains and momentum, now is the right 
time for the country to start thinking and planning not only for our citizens' current 
needs but also for the welfare and prosperity of our future citizens. Now is the right 
time for our young but most promising nation to start saving and investing on behalf 
of current as well as next generations of Filipinos.
This measure, thus, seeks to create a Philippine Sovereign Wealth Fund as a 
long term investment vehicle for the Philippine government. As defined in the bill, a 
SWF is a special purpose investment fund or arrangement owned by the national 
government. Created by the government for macroeconomic purposes, a SWF holds, 
manages, or administers assets to achieve identified financial objectives. It also 
employs a set of investment strategies that include investing in foreign financial 
assets.
The creation of a SWF in the Philippines, in the form of the Philippine 
Investment Fund Corporation (PIFC), will help ensure that the wealth that the 
country has so far created and accumulated will continue to grow, be passed on to, 
and be beneficial for our children and our children's children. Earnings from the SWF 
are envisioned to boost and sustain a national budget that is directed at addressing


the needs of our poorest and most vulnerable citizens, and promoting the welfare 
and development of Filipinos in the margins.
Building on the knowledge and lessons from the experience of SWFs 
operating in different countries across the globe, this measure provides for the 
creation and management of a Philippine SWF that adheres to principles of good 
governance, transparency, and accountability. It will implement international best 
practices in investing and managing assets in accordance with Generally Accepted 
Principles and Practices {'Santiago Principles") for SWFs.
As we continue to push not just for high but also more inclusive growth, we 
must ensure not just more equitable sharing of wealth across geographic and social 
sectors but also across time and generations. 
,
In view of the foregoing, the immediate approval of this bill is urgently
sought.
Senator Pi
to Benigno "Barn" A. Aquino IV


•'''' ■>
SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
SENA? 9  1 O
S.B. No.
0/firt of 
y
.)CT 19 A^o 59
lU-:CL:i\Mi) BY; ^
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT
ESTABLISHING A PHILIPPINE SOVEREIGN WEALTH FUND PROVIDING FOR THE 
MANAGEMENT, INVESTMENT, AND USE OF PROCEEDS OF ITS ASSETS, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives, of the Philippines in Congress 
assembled:
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SECTION 1. Title, — This Act shall be known as the "Philippine Investment Fund 
Corporation Act.'*
SEC. 2. Declaration of Policy. — It shall be the policy of the State to develop a self- 
reliant and independent national economy effectively controlled by Filipinos to ensure the 
prosperity of the nation and to improve the quality of life of its current and future 
generations of citizens. Towards this end, it shall establish a Sovereign Wealth Fund as a 
State-owned investment fund for the purpose of accumulating national savings and in 
promoting growth and social development across the nation.
ARTICLE I
DEFINITION OF TERMS
SEC. 3. Definition of Terms. -  As used in this Act, the following terms shall rriean:
1)
2)
3)
4)
5)
6)
Alternative Investments -  an investment in an asset classes other than stocks, 
bonds, or cash.
Asset Class — a group of investments that have the same characteristics, behave 
similarly, and are subject to similar market forces, laws and regulations.
Bangko Sentral ng Pilipinas (BSP) -  shall refer to the Central Bank of the 
Philippines created under Republic Act No. 7653.
Co-Investments -  joint ventures or arrangements in which two or more parties 
contribute resources in order to achieve a goal.
Commodities -  tangible products such as metal, crude oil, or grain.
Equities — shares, stocks, or securities that signify ownership interest in a 
company.


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7) 
Fixed Income -  assets providing income to investors via a fixed coupon payment 
which include, but not limited to, sovereign bonds, investment grade credit, 
high-yield bonds, emerging market debt, and inflation-linked securities.
8) 
Futures -  financial contracts obligating the buyer to purchase an asset or 
the seller to sell an asset, such as a physical commodity or a financial instrument at a 
predetermined future date and price.
9) 
Global Financial Markets -  exchanges and institutions in countries where buyers 
and sellers participate in the trade of assets such as equities, bonds, foreign 
exchange, commodities, and any or all other markets in the financial sedtor.
10) Government-Owned or -Controlled Corporation (GOCC) — any agency organized as 
a stock or non-stock corporation, vested with functions relating to public needs 
whether governmental or proprietary in nature, and owned by the Government 
of the Republic of the Philippines directly or through its instrumentalities either 
wholly or, where applicable as in the case of stock corporations, to the extent of 
at least a majority of its outstanding capital stock.
11) High-Water Mark (HWM) — the highest peak in value that an investment fund or 
account has reached.
12) Investment Mandates — funds of GOCCs and their subsidiaries, government 
owned and controlled funds with investment and development goals, and 
investments 
of 
government 
financial 
institutions 
and 
government 
instrumentalities mandated by Congress.
13) Net Asset Value (NAV) -  the total value of the assets of a fund after its liabilities 
has been subtracted.
14) Private Equity -  an asset class consisting of equity and debt in operating 
companies that are not publicly traded on a stock exchange.
15) Private Markets — a market where capital is raised by specific agreement 
between investors. The terms of each transaction are negotiated separately, 
usually remain private, and are not disclosed to third parties. Private markets 
include private equity, real estate, infrastructure, and timber.
16) Public Markets — exchange listed securities or over-the-counter financial 
contracts linked to listed securities and/or widely-followed indices or 
benchmarks.
17) Real Asset -  a tangible, touchable asset that has value.
18) Risk Management -  the process of identification, analysis and acceptance or 
mitigation of uncertainty in investment decisions.
19) Santiago Principles — the twenty four (24) Generally Accepted Principles and 
Practices (GAPP) voluntarily endorsed by the International Forum of Sovereign 
Wealth Funds (IFSWF) members. The Sovereign Wealth Funds' (SWF) GAPP are 
designed as guidelines that assign best practices for the operations of SWFs. 
They are the rules to be followed by SWFs management that promotes stability 
in the global financial system, sets proper controls on investment risks, and 
implements sound governance structure.
20) Sovereign Wealth Funds (SWFs) -  special purpose investment funds or 
arrangements owned by the national government. Created by the national 
government for macro-economic purposes, SWFs hold, manage, or administer 
assets to achieve financial objectives, and employ a set of investment strategies 
that include investing globally and in all asset classes. 
SWFs are commonly


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established out of balance of payment surpluses, official foreign currency 
operations, the proceeds from privatizations, fiscal surpluses, and royalties or 
taxes resulting from commodity exports. There are five (5) major classifications 
of SWFs, namely, fiscal stabilization funds, savings funds, reserve investment 
funds, development funds, and pension reserve funds.
ARTICLE II
THE PHILIPPINE INVESTMENT FUND CORPORATION
SEC. 4. Establishment o f the Philippine investment Fund Corporation. -  There is 
hereby created the Phiiippine Investment Fund Corporation, hereinafter referred to as 
"PIFC" or the "Corporation," as an independent corporate body attached to the Office of 
the President. The PIFC shall operate as a Sovereign Wealth Fund ("SWF") that adheres to 
principles of good governance, transparency, and accountability. The PIFC shall invest 
globally on a commercial basis in a manner designed to secure the future of the present 
and upcoming generations.
SEC. 5. Ownership and beneficiaries o f the PIFC. -  The legal ownership of the 
Corporation shall be vested in the Republic of the Philippines. The PIFC shall aim to provide 
financial stability for economic development and to enable citizens to achieve economic 
security and prosperity for the future. The Board of Directors ("Board") shall have exclusive 
legal custody of, and management of the Corporation, in accordance with this Act.
SEC. 6. Objectives o f the PIFC. — The primary objective of the Corporation is to build 
up savings for the present and future generations. To do so, the PIFC shall endeavor to 
protect and enhance the long-term value of its capital and assets and to obtain the best 
absolute return and achievable financial gains on its investments. The Corporation's 
activities shall contribute to a prudent and transparent management of government 
resources.
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The other objectives of the Corporation shall be:
a) To contribute to the annual national budget in accordance with this Act;
b) To provide an investment function platform for GOCCs and their subsidiaries, 
government owned and controlled funds with investment and development 
goals, and investments of government financial institutions and government 
instrumentalities mandated by Congress; and
c) To enhance the capacity and capabilities build-up of human resources in the 
financial 
and 
asset 
management 
industry 
and 
build-up 
the 
required 
infrastructure to 
manage 
and 
monitor global 
multi-asset/multi-strategy 
portfolios.
SEC. 7. Functions o f the PIFC. -  In order to achieve the objectives of the Corporation 
and in carrying out its functions, the PIFC shall:
a) Establish a diversified portfolio of investments in the global financial markets and 
in foreign assets that promote the objectives of the Corporation;
b) Manage and invest the initial and future contributions to the PIFC in accordance 
with this Act;


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c) Accept and manage Investment Mandates whose investment purpose is to 
increase income for development goals;
d) Develop and foster skills in asset management, investment operations and 
administration, risk mitigation and monitoring, and other related areas 
consistent with the capacity and capabilities build-up of human resources in the 
financial and asset management industry; and
e) Implement international best practices in investing and managing assets in 
accordance with the Santiago Principles for SWFs or similar principles as may be 
adopted by the Board.
SEC. 8. Capitalization o f the Corporation. — The PIFC shall have an authorized capital 
stock of Two Hundred Billion Pesos (Php 200,000,000,000.00) at its inception, which shall be 
fully subscribed and paid in cash by the Government of the Republic of the Philippines upon 
the approval of this Act. The Authorized Capitalization of the PIFC shall be appropriated in 
the annual General Appropriations Act ("GAA") or in such manner as the Government, 
through the National Treasurer and the Secretary of Budget and Management, may 
determine. The Authorized Capitalization of the Corporation shall be maintained at all 
times. No amount shall be withdrawn from the PIFC, other than those stated in Section 10 
of this Act, if it will diminish the Authorized Capitalization of the Corporation to an amount 
less than its value at inception.
For the succeeding years after the implementation of this Act, the PIFC shall have an 
appropriation from the annual GAA of between 0.2% and 0.5% of the country's Gross 
Domestic Product ( GDP"). Additional capitalization of the PIFC may be made upon approval 
of the Council as recommended by the Board or through a Congressional mandate.
SEC. 9. PIFC Investment Funds, Accounts, and Withdrawals. -  The PIFC shall 
maintain various accounts for its investments, administration and operational activities:
a) Primary Investment Fund ("Prime Fund") — From the authorized capital of the 
Corporation, the Board shall deposit an amount equivalent to Three Billion 
United States dollars (USD 3,000,000,000.00) or the equivalent thereof in foreign 
currencies as initial capital contribution to a primary investment fund account of 
the Corporation that will invest internationally. The Bangko Sentral ng Pilipinas 
("BSP") shall provide the initial foreign currency requirements of the Corporation. 
Subsequently, the BSP shall provide the basket of currencies the Corporation 
requires. Other capital contributions to the Prime Fund shall be made upon 
approval of the Board.
Withdrawals from the Prime Fund shall be made only after three years of 
investment activities. Thereafter, only up to a total of fifty percent (50%) of the 
PlFC's net new gains may be withdrawn for purposes of contributing to the 
National Budget or for such other purposes as approved by the Board but not 
inconsistent with the objectives of the PIFC. A high-water mark ("HWM") shall be 
employed to define the net new gains. The HWM shall be reset every year after 
the audited financial statements have been released by the PIFC. Withdrawals 
can only be made after the audit has been finalized for any given fiscal year. The


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notice period for any withdrawal is one year or shortened as determined by the 
Investment Committee.
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b) Special Investment Funds ("SIFs") — The Board shall accept and approve 
Investment Mandates from GOCCs, other government owned and government 
controlled funds, or government instrumentalities with investment purposes as 
mandated by the President, the Council, or by legislation. The PIFC shall operate 
and manage the SIFs in accordance with specific investment objectives, 
investment strategies and risk parameters of the Investment Mandates.
Withdrawals from a SIF shall be in accordance with withdrawal rules agreed to by 
the Corporation upon its acceptance.
c) Reserve Account and Reserve Investment Account -  The PIFC shall maintain a 
Reserve Account for funds of the Corporation not committed for investment 
purposes. The funds of the Reserve Account not needed to meet the current 
administrative and operational expenses of the PIFC shall be accumulated in the 
Reserve Investment Account which the Corporation's Chief Investment Officer 
and Chief Financial Officer shall manage Jointly and invest with skill, care, 
prudence, and diligence in line with the basic principles of safety/security, good 
yield and liquidity and in a manner as the Board shall authorize. The Reserve 
Investment Account may invest in both domestic and foreign markets.
SEC. 10. Administrative and Operational Expenses. — The Reserve Account shall be 
used for any or all of the following purposes:
a) Payment for all expenses authorized by the Board in connection with the 
discharge of its responsibilities and in the structuring, administration, and 
operation of the Corporation;
b) Payment of compensation and fees to service providers contracted by the 
Corporation in connection with the operations of the PIFC; and
c) Payment for administrative costs, expenses, obligations or liabilities directly 
related to the administration of the PIFC.
ARTICLE III 
INVESTMENTS
SEC. 11. Allowable Investments. -  The Board shall authorize the following:
a) Investments shall be made only in global financial markets and foreign assets;
b) Global investments that shall include:
i. 
A diversified portfolio of investments in:
a. Equities
b. Fixed Income
c. Commodities
d. Cash and Foreign Currencies
e. Futures
f. 
Real Estate
g. Private Equity


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II.
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Alternative investments 
Investments in Private markets 
Investments in Public markets 
Investments in Real assets 
Joint Ventures or Co-Investments
Such other investments, not inconsistent with this Act, as the Board 
considers relevant.
c) Limitations— Without limiting the Investment Mandate of the Prime Fund:
i. 
The PlFC's assets shall not be used as collateral for loans or otherwise 
encumbered by the government; and
ii. 
The PlFC's assets shall not be used as security or to support any 
guarantees of the government.
Investments of the Corporation shall be made in the name of the PIFC unless 
otherwise authorized by the Board.
SEC. 12. Investment Policy. -  The Board must formulate written policies in relation 
to the following matters:
a) The Investment Mandates and Investment Strategies;
b) Standards for assessing the investment performance;
c) Directions on the acceptable balance between risk and return in the overall 
portfolio;
d) Risk management for the investments;
e) Matters relating to international best practice for institutional investments;
f) Standards for ethical investments; and
g) Matters specific to rules and regulations where investments are domiciled.
The Board must ensure that policies formulated are consistent with the objectives of 
the Corporation. The Board must conduct periodic review of policies.
Sec. 13. Fund Investment Ve/i/c/es. -  Any of the investments of the PIFC shall be held 
in an entity that is formed, controlled or authorized by the Board for the purpose of 
facilitating or managing the investments of the PIFC. Interests in the investment vehicles are 
the PIFC s investment holdings and part of the assets of Corporation. The Investment 
Committee shall execute, operate and supervise the Fund Investment Vehicles of the PIFC.
ARTICLE IV 
GOVERNANCE
SEC. 14. Supervisory Council. -  The Supervisory Council ("Council") shall provide 
guidance, advice and counsel to the Board with regards to the objectives and purpose of the 
Corporation under this Act. The Council shall, in discharge of its duties, observe the 
independence of the Board and the officers of the PIFC in relation to the performance of 
their functions. The Council shall consist of:
a) The President of the Republic, who shall be the Chairman;
b) The Secretary of the Department of Finance (DOF), who shall be the Vice 
Chairman;


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c) The National Treasurer as a member and who shall head the Secretariat;
d) The Secretary of the Department of Budget and Management (DBM) as member;
e) The Governor of the BSP as member;
f) The Chairperson of the Governance Commission for Government Owned or 
Controlled Corporations (GCG) as member; and
g) The Solicitor General as member.
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The Council shall meet at least twice a year or as may be requested by the Board to 
seek guidance and counsel with regards to the objectives of the PIFC. The Council shall have 
a Secretariat composed of the National Treasurer and the Secretary of the DBM and appoint 
at least a Deputy Treasurer and two (2) Undersecretaries from the DOF and DBM to assist. 
The Secretariat shall provide the monitoring and assessment function on behalf of the 
Council. The Secretariat shall perform such other duties as delegated by the President or as 
agreed to by the Council in accordance with this Act.
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SEC. 15. The Board of Directors. — The Board shall be responsible for the overall 
governance and performance of the PIFC. The Board oversees the Corporation's activities 
and control of its assets. The Board may elect to form an Advisory Committee composed of 
foreign top executives and professionals who have managed SWFs and experts in 
economics, finance, and the global financial markets.
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SEC. 16. Functions o f the Board. -  The primary function of the Board is to manage 
PIFC, its assets and investments in accordance with this Act. The functions of the Board
a) To determine the investment strategies of the Corporation;
b) To appoint the Chief Executive Officer;
c) To appoint the Administrator and Custodian upon the recommendation of the 
Investment Committee;
d) To determine the functions of the Executive Management and Investment 
Committee;
e) To determine the organizational structure, staffing pattern, and number of all 
personnel of the Corporation, define their duties and responsibilities, and fix 
their compensation and other emoluments;
f) To adopt, amend, revise, modify or repeal rules and regulations necessary to 
implement the provisions of this Act;
g) To approve investments of the Corporation and acceptance of Investment 
Mandates;
h) To confirm that requests for withdrawals from the PIFC are consistent with this 
Act and any other related laws;
i) 
To appoint other persons as are necessary to assist the Board in carrying out its 
functions;
J) 
To report to the President, the Council, and Congress; and
k) To do all things incidental to or conducive to the performance of any of the 
above functions.
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SEC. 17. Composition o f the Board. -  The Board shall be composed of the following:
a) The Chairperson of the Board;


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b)
c)
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The Vice Chairperson of the Board;
Five (5) members who are reputable members of the private sector with proven 
competence and experience in finance, economics, investments, business 
management, or law; and
Two (2) members who shall be selected from any of the leading business or 
financial associations of the Philippines.
The Council shall increase the composition of the Board as it may deem necessary to 
achieve the objectives of the PIFC.
SEC. 18, Qualifications of the Chairperson and Board Members. -  All Board 
Members shall be citizens of the Philippines and must be of good moral standing and 
reputation, of recognized probity and independence, and have substantial experience and 
expertise in any of the following; (a) corporate governance and administration, (b) 
investment in financial assets, or (c) management of investments in the global markets. In 
addition to the requirements for nomination of a Board Member, the Chairperson must 
have over 10 years of experience in corporate governance, have been a top level executive 
for at least 8 years in a recognized global financial institution, and have a wide exposure to 
and deep understanding on the mechanics of managing investments in the global markets.
SEC. 19. Appointment o f the Chairperson and Board Members. -  A Nominating 
Committee consisting of the Secretary of the DOF, the National Treasurer, the GCG 
Chairperson, and two (2) representatives from the financial sector shall assist in the 
selection process of the members of the Board.
The President shall, acting in accordance with the advice of the Nominating 
Committee, appoint the Chairperson of the Board. The Council shall, acting in accordance 
with the advice of the Nominating Committee, appoint all other Board Members.
SEC. 20. Duties and Responsibilities o f Board Members. -  A Board Member, when 
exercising his powers and duties under this Act, shall:
a) Act in good faith and in the best interest of the Board and the Corporation;
b) Exercise the standard of care, diligence and skill that would be reasonably 
expected of a member of such a Board in the same circumstance;
c) Maintain full confidentiality in relation to the business and affairs of the Board;
d) Not divulge or use for his benefit or the benefit of any other person, any 
information relating to the Corporation or the Board or his function as a Board 
Member, except in accordance to this Act or as otherwise required by law; and
e) Avoid at all times conflict of interests wherein the Board Member will or may 
derive a material financial interest, directly or indirectly, from transactions of 
which the Board is a party to or where it relates to the activities of the 
Corporation.
A Board Member who violates the provisions as provided for in this Section shall be 
terminated as Board Member, penalized with a fine not exceeding Five Hundred Thousand 
Pesos (Php 500,000.00), or imprisoned as determined by law, or both.


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SEC. 21. Term o f Office o f the Chairperson and the Board Members. -  The 
Chairperson shall serve for a fixed term of seven (7) years. The first four (4) Board Members 
shall serve for a fixed term of five (5) years and the other three (3) Board Members shall 
serve for a fixed term of three (3) years or until their successors shall have been qualified 
and appointed or unless sooner removed for cause. Appointments to vacant positions shall 
only be for the unexpired term of the predecessor.
The Chairperson may resign, but may remain a Board Member if he opts to do so as 
long as he remains duly qualified to serve as a member of the Board: Provided, That the 
maximum number of Board Members is not exceeded by reason of appointment of a new 
Chairperson.
Upon resignation of the Chairperson, the Vice Chairperson will take over the 
functions of the Chairperson until such time as a new Chairperson is appointed either from 
among the remaining members of the Board or outside of the Board, in accordance with 
this Act. Any Board Member may, for cause, be suspended or removed by the President 
solely on the recommendation of the Council.
SEC. 22. Quorum and Meetings o f the Board. -  The Board shall meet at least once 
every month from the effectivity of this Act, every other month on the second and third 
year of operation of the Corporation, and at least quarterly thereafter. The Board may hold 
special meetings to consider urgent matters upon call of the Chairperson or Vice 
Chairperson or upon the initiative of at least five (5) members of the Board.
The Chairperson shall preside over all Board meetings. In the absence of the 
Chairperson, the Vice Chairperson or any designated member of the Board may preside 
during the meetings. All Board Members should be present during the first three meetings 
of the first set of Board Members. Thereafter, the quorum shall consist of the Chairperson 
and at least four (4) other Board Members. At the meeting of the Board, all matters shall be 
decided by a majority of the votes of the members present unless otherwise specified in this 
Act. The Chairperson has a deliberative vote and, if there is an equal number of votes on any 
matter, also a casting vote. All Board meetings shall be held in the Philippines. Subject to 
this Act, the procedures of the Board are as determined by it.
SEC. 23. Compensation o f the Chairperson and Board Members. -  The Chairperson 
and the members of the Board shall be entitled to reasonable allowances and/or per diem 
for each meeting actually attended and shall be reimbursed for actual and reasonable 
expenses incurred in the performance of their duties.
ARTICLE V
EXECUTIVE MANAGEMENT
SEC. 24. The Executive Management. -  The Executive Management shall be 
responsible for managing the day-to-day affairs and operations of the PIFC. The Executive 
Management shall consist of a Chief Executive Officer who is appointed by the Board, a 
Chief Investment Officer, a Chief Operations Officer, a Chief Financial Officer, a Chief Risk


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Officer, a Chief Technology Officer, and a Head of Compliance and such other officers as are 
necessary to carry out its functions.
SEC. 25. The Functions o f the Executive Management -  The functions of the 
Executive Management shall be as follows:
a) To provide executive and administrative support to the Corporation;
b) To do all things as are necessary to give effect to the decisions of the Board;
c) To provide information to the Board on the global financial markets;
d) To provide information to the Board, if required, on the performance of a Fund 
Manager, 
Asset 
Manager, 
Investment 
Manager, 
Investment 
Adviser, 
Administrator, Custodian or any other appointments made by the Board and the 
Investment Committee;
e) To prepare annual and quarterly reports for the Board; and
f) Such other functions as determined by the Board.
The Executive Management may do anything incidental to or conducive for the 
performance of any of the above functions as approved by the Board.
SEC. 26. The Investment Committee. — The investment Committee shall be 
composed of the Chief Executive Officer, the Chief investment Officer, and the Chief Risk 
Officer. The Board may increase the composition of the investment Committee, from time 
to time, to help ensure that the investment objectives of the Corporation are attained in 
accordance with this Act.
a) The Chief Executive Officer (CEO) shall:
I.
ii.
iii.
iv.
V.
vi.
Head the Executive Management; 
, 
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Be responsible to the Board for the efficient carrying out of its functions; 
Act in accordance with the directions of the Board;
Appoint such officers of the Executive Management as are necessary to 
carry out the functions of the Corporation, subject to the authorities 
granted by the Board; 
♦
Have at least 12 years of experience and expertise in Corporate 
Governance and Administration, In investment and asset management, 
and exposure in the global financiaj markets; and 
Be a member and Vice Chairperson of the Board.
b) The Chief investment Officer (CiO) shall:
i. 
Head the Investment Function;
ii. 
Be responsible to the Board and/or the CEO for the efficient carrying out 
of the investment function;
Act in accordance with the directions of the Board and the CEO on 
managing investment performance;
Chair the Investment Committee that will oversee and approve the 
inclusion of suitable investments that meet the investment objectives set 
by the Board and the CEO;
Constitute a sub investment advisory committee as needed that may 
include voting heads of asset management and risk management; and
iii.
iv.
V.
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VI.
Have at least ten (10) years of experience in global financial markets and 
expertise in managing a diversified portfolio of asset classes.
c) The Chief Risk Officer (CRO) shall:
I.
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Mi.
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Head the Risk Function;
Be responsible to both the CEO and the CIO for efficiently carrying out the 
risk function;
Act in accordance with the directions of the Board and the Investment 
Committee;
Determine, along with the CIO, the degree of capital preservation and 
risk-taking for the investment function platform and portfolio; and 
V. 
Have at least five (5) years of experience in global financial markets and 
risk management operations.
The Board may allow the delegation or outsourcing of some of the functions of the 
CIO and the CRO: Provided, That the CIO and CRO shall retain overall supervision of the 
investment and risk functions of the PIFC: Provided, further. That the outsourcing of any of 
the functions of the CIO and CRO may only be undertaken for a specified period as 
determined by the Board.
SEC. 27. The Functions o f the Investment Committee. -  The functions of the 
Investment Committee shall be as follows:
a) To formulate investment policies and implementing rules;
b) To select criteria and targets for investments;
c) To define the investment processes which includes asset allocation, manager 
selection, portfolio construction, and risk mitigation;
d) To provide standards for measuring performance and risk;
e) To develop strategies appropriate for the investments;
f) To approve acquisitions, disposals and capital expenditure in line with the limits 
of authority delegated to it by the Board;
g) To schedule deposits and withdrawals of the PIFC;
h) To appoint external managers and third party service providers;
i) 
To assist the Board in the selection of the Administrator and Custodian and 
supervise their activities on behalf of the Board;
j) 
To review the performance of portfolios;
k) To report regularly and make recommendations to the Board for approval;
l) 
To obtain outside professional advice to assist with the execution of its duties; 
and
m) To perform such other functions as determined by the Board.
ARTICLE VI
EXTERNAL MANAGERS, ADMINISTRATOR AND CUSTODIAN
SEC. 28. Engagement o f External Managers. -  The Investment Committee may 
engage fund managers, asset managers, investment managers, and investment advisors as 
the Investment Committee considers necessary to manage the investments of the PIFC. The
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External Managers shall implement the strategies and directions of the Investment
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Committee in relation to the investments of the PIFC.
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The Investment Committee shall set the terms and conditions of, and determine the
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process for, engagement of the External Managers as well as the conditions for the
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termination of such an engagement.
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SEC. 29. Engagement o f the Administrator and Custodian.- The Board shall appoint 
the Administrator and the Custodian in an open, competitive, and transparent manner. They 
shall be responsible for the following:
a) 
Holding and safekeeping of assets;
b) 
Implementing strategies and controls to safeguard the assets;
c) 
Reporting on assets under its custody;
d) 
Executing settlements in accordance with the directions and instructions of the 
Board;
e) 
Maintaining the Registry of shares;
f) 
Administrative processing of subscription and redemptions and withdrawals of 
investments;
g) 
Preparing and maintaining the financial and accounting records and statements;
h) 
Determining the Net Asset Value (NAV);
i) 
Arranging for the provision of accounting and administrative services;
j) 
Disbursing payments of costs, fees and compensation, if any; and
k) 
Performing any related administrative and custody services for the Corporation.
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The Board shall set terms and conditions of, and determine the process for,
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engagement of the Administrator and Custodian as well as the conditions for the
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termination of such an engagement. The Board may make further provisions for the
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Administrator and Custodian, not inconsistent with this Act.
ARTICLE VII 
AUDIT
SEC. 30. Compiiance with International Financial Reporting Standards. -  In 
preparing the Corporation s financial statements, the Board shall endeavor to ensure that it 
complies with international financial reporting standards.
SEC. 31. Engagement o f an Internal Auditor. — The Board shall appoint an internal 
auditor, who shall provide written interim financial and management reports as requested
by the Board. A copy of each interim report shall be presented to the Secretariat of the 
Council.
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SEC. 32. Engagement o f an External Auditor. -  The Board shall appoint, for each 
accounting period or as soon as practicable after the commencement of the relevant 
accounting period, an internationally recognized auditing firm to be the External Auditor of 
the Corporation and to audit its financial statements.
The External Auditor shall:
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a) Be appointed for a term of one (1) year;
b) Be eligible for re-appointment; and
c) Hold office on such terms and conditions as are determined by the Board.
SEC. 33. Applicability. -  The responsibilities of the Internal Auditor and External 
Auditor shall be without prejudice to the power, authority and duty of the Commission on 
Audit (COA) to examine, audit and settle all accounts, pertaining to the revenues and the 
use of funds and property owned and held in trust by any government instrumentality, 
including GOCCs. The PIFC shall be subject to the rules and regulations of the Commission 
on Audit (COA) as provided in the Constitution and existing laws.
ARTICLE VIII 
REPORTS & RECORDS
SEC. 34. interim Reports. — When required by the Board, interim quarterly or semi­
annual reports shall be submitted as soon as practicable detailing the performance of the 
investments of the Corporation.
SEC. 35. Annual Reports. -  The Board shall, as soon as practicable after the 31st 
December of each year, prepare and furnish to the President, the Council, and Congress, an 
annual report on its operations and the financial statements for that year.
The Board shall ensure that the annual report received by the Board, is made public 
as soon as practicable, but not later than thirty (30) days after the annual report is delivered 
to the Secretariat of the Council.
SEC. 36. Records. -  The records of the Corporation pertaining to its investment 
activities will be secured and maintained for no less than ten (10) years or as long as assets 
and investments of the Corporation exists. Access to Corporate records will be either upon 
approval of the Board or by law. Records of Fund Investment Vehicles shall be maintained 
and accessible to the regulatory authorities where the foreign assets and investment are 
domiciled.
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ARTICLE IX 
MISCELLANEOUS
SEC. 37. Indemnification and Insurance. -  With respect to any actions in which any 
of the PlFC's Board 
and officers is a party, the Corporation shall indemnify and hold 
harmless such person against any loss, claim, damage, charge, liability or expense, including, 
without limitation, reasonable attorneys' fees and disbursements which any such 
indemnitee may incur arising out of their activities or involvement with or on behalf of the 
Corporation, as the case may be: Provided, That the indemnitee acted in good faith and in a 
manner reasonably believed to be in, or not opposed to, the best interests of the 
Corporation and: Provided, further, That the indemnitee's action did not constitute fraud, 
willful misconduct, bad faith, gross negligence or failure to comply in accordance with this 
Act or any applicable law.
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The PIFC may purchase and maintain insurance in relation to the Board and key
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officers against any liabilities asserted against them.
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SEC. 38. Exemption from Taxes, Duties, and Customs Charges. -  The Corporation 
^shall be exempt from payment of all taxes in the Philippines of every name and nature — 
municipal, city, provincial or national and all other properties owned and operated by it and 
duties on all supplies, materials and equipment imported for and/or by the Corporation. 
However, the PIFC may be subject to applicable taxes in the countries in which the 
Corporation invests.
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SEC. 39. Exemption from  the Government Procurement A ct -  The Corporation's
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transactions shall be exempt from the provisions of Republic Act No. 9184, otherwise known
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as the "Government Procurement Act".
SEC. 40. Exemption from  Civii Service Ruie, Saiary Standardization Act, and Law on 
Compensation. — The officers and employees of the Corporation shall be exempt from the 
rules and regulations of the Civil Service Commission. Further, they shall be exempted from 
the provisions of Republic Act No. 6758, otherwise known as the "Salary Standardization 
Act," as well as the provisions of Republic Act No. 10149, otherwise known as the "Law on 
Compensation in Government Corporations." The compensation of the officers and key 
personnel of the Corporation shall be set based on an objective classification consistent 
with international standards for compensating investment management professionals 
managing global assets, taking into consideration the importance and responsibilities 
attached to the respective positions. The compensation structure of the PIFC shall be 
submitted by the Board to the President for approval.
SEC. 41. Compiiance with Host Countries' Laws and Reguiatory Principies. -  The 
Board shall not operate or manage, and the PIFC shall not be invested, in a manner that 
breaches the laws of any host country. The PIFC shall comply with all applicable regulatory 
and disclosure requirements in the countries in which it will invest.
SEC. 42. impiementing Ruies and Reguiations. -  Within ninety (90) days from the 
effectivity of this Act, the Board, in consultation with the Executive Management, shall 
promulgate the necessary rules and regulations for the implementation of this Act.
SEC. 43. Appropriations. — The amount of Two Hundred Billion Pesos (Php 
200,000,000,000.00) for the initial capitalization of the PIFC shall be included in the General 
Appropriations Act. Thereafter, additional capitalization equivalent to 0.2% to 0.5% of the 
country's Gross Domestic Product (GDP) per year shall be included in the annual General 
Appropriations Act.
SEC. 44. Separabiiity Ciause. -  If any provision of this Act is declared invalid or 
unconstitutional, the remaining parts or provisions not affected shall remain valid.
SEC. 45. Repealing Ciause. -  All acts, executive orders, administrative orders, 
proclamations, rules and regulations or parts thereof inconsistent with any of the provisions 
of this Act are hereby repealed or modified accordingly.
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SEC. 46. Effectivity. -  This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
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