Section 10Sec./Art. 10

Creation of a Trust Fund Management Committee. - There is hereby created a Trust Fund Management Committee, which shall be comprised of authorized representatives of the DOF, DBM, and Department of Justice (DOJ). The Trust Fund Management Committee shall be responsible for setting the Investment Strategy of the Trust Fund, which includes the following, among others:

(a) Setting of investment priorities;

(b) Setting of investment themes;

(c) Evaluation of assets to determine portfolio size;

(d) Setting of asset allocation;

(e) Setting of policies with respect to particular asset types;

(f) Guidelines for portfolio turnover;

(g) Guidelines for Trust Fund Management Expenses;

(h) Set the annual allocation of the Trust Fund available for disbursement which shall not be less than Five billion pesos (P5,000,000,000.00) per year but which can be more if the funds shall permit;

(i) Approval of the financial requirements of DDEs in relation to its function set forth under this Act, including its annual budget for operations, management, and privatization/disposition of Coconut Levy Assets and/or Funds transferred and entrusted in its care; and

(j) Other guidelines as may be necessary to fulfill its mandate under this Act.

The BTr shall act as the Trust Fund Management Committee Secretariat and shall maintain records and accounts of all investments, receipts, disbursements, and other transactions relating to the management, administration, and utilization of the Trust Fund: Provided, That these records and accounts shall be maintained in accordance with existing accounting and auditing laws, rules and regulations, and shall be audited by the COA.

For the above purposes, an amount of one-half of one percent of the Trust Fund Principal shall be utilized as Trust Fund Management Expense, which shall be sourced from the Trust Fund. The Trust Fund Management Expense shall answer for all expenses directly incurred in the management of the Trust Fund, including, but not limited to, transaction fees, redemption fees, placement fees, investment fees, transaction costs, and other operating expenses.