Section 17Sec./Art. 17

Investment Policy. The Board of Directors shall formulate written policies in relation to the following matters:

(a) Directions on the acceptable balance between risk and return of the overall portfolio:

(b) Investments policies including policies that promote environmental, social, and governance (ESG) principles, mandates, strategies, and guidelines on financing infrastructure projects and other Investments;

(c) Risk management for the investments, including prudential standards and concentration limits, to avoid undue risk concentration from excessive exposures;

(d) Standards for assessing the investment performance;

(e) Matters relating to international best practices for institutional investments;

(f) Matters specific to rules and regulations where investments are domiciled;

(g) Procedural framework and cooperative among investors, including fund commitments, co-investments, voting requirements, exit mechanisms, and other matters pertaining to the pooling of funds and the management thereof;

(h) Matters relating to the procedure for assessing, deploying, and liquidating investments;

(i) Disclosure and transparency mechanisms to oversee compliance by various departments of the MIC with the standards, procedures and policies set by the Board;

(j) Aside from the potential earnings, the Board shall take into account risks other than economic, such as climate risks and those that are reported under rules and regulations of government agencies requiring ESG reporting as well as resource valuation studies and natural capital accounting in making investment decisions; and

(k) All other matters needed to be discussed to guarantee compliance with the objectives of the MIF.

In the formulation of its investment policies, the Board of Directors shall be guided by the principle that priority must be given to investing in government infrastructure and other development impact of lower cost of living and lower cost of basic commodities, as well as in those investment that incorporated ESG considerations and sustainable practices. The Board of Directors shall ensure that policies formulated are consistent with the objectives of the Fund, and the same shall be subject to periodic review.

All investment policies approved by the Board of the MIC shall be posted on its website which shall be immediately updated and be made easily accessible to the public.