Success of Maharlika fund will depend on board members - experts

Metro Manila (CNN Philippines, July 21) — The success of the country's first sovereign wealth fund would be highly dependent on the selected board members that will manage its investments, according to finance and investment experts.

READ: The proposed Maharlika Investment Fund: What you need to know

"It should be a good combination between international and local fund managers. The key there will be to select the CEO [chief executive officer] and give them the flexibility to choose their team," former Finance Secretary Gary Teves told CNN Philippines' The Exchange Friday.

Teves said it's important that the board members are trusted, transparent, and credible individuals with no political affiliations.

The Maharlika Investment Corp. board that will manage the Maharlika Investment Fund (MIF) will include the finance chief, a CEO, the presidents of the Land Bank of the Philippines and the Development Bank of the Philippines, two regular directors, and three independent directors.

"The quicker we get the team appointed, then they can work on a combination of existing projects from our portfolio of projects in the Philippines and combine them with some available internationally," Teves added.

For Chris Nelson, Executive Director and Trustee of the British Chamber of Commerce of the Philippines, the government should look at people already connected with funds.

"I'm sure they've [the government] had extensive discussions with the World Bank, Asian Development Bank, and the IMF [International Monetary Fund]...I would echo former secretary Teves' point. I think they are conscious of that and they are looking to get competent people into this fund," Nelson said.

"That will give it the credibility that it will go forward on it, they've appointed nine people on it. Now we need to see the implementing rules and regulations (IRR)," he added.

President Ferdinand Marcos Jr. signed the bill creating the MIF on July 18. The Department of Finance is eyeing the completion of the new law's IRR by September.