Peso Slide May Boost Value of Maharlika Investments

MANILA, Philippines — A weak peso may boost the value of some investments of Maharlika Investment Corp. (MIC), although the impact on its net income is likely to be immaterial, the fund manager’s top official said. MIC president and CEO Rafael Consing Jr. said the company holds both peso- and dollar-denominated investments. “Since our balance sheet is reported in pesos, a weaker peso raises the peso value of our dollar holdings — so on that portion of the portfolio, depreciation is accretive, not dilutive,” he said in a Viber message yesterday. The Philippine local unit further skids to a historic low of P62.86 versus the dollar yesterday, according to Bankers Association of the Philippines data. This extended the peso’s stay at the P62-per-dollar level this month. However, Consing said MIC’s foreign currency holdings remain minimal, so the net income accretion will be immaterial. The effect of a weaker peso could also extend to some of MIC’s existing and target investee companies that generate revenues in US dollars. “A number of our current and target investee companies also earn revenues in US dollars. Translated to peso, this lifts their reported top line – and flows through to MIC directly, via higher dividends and higher equitized earnings,” he said. Meanwhile, Consing said the “value accretion” from the investment in Asian Terminals Inc. (ATI) is “different,” as part of its revenues are earned in foreign currency. In March, MIC completed the acquisition of shares in ATI through a tender offer, expanding its stake in the port operator. The total share acquisition of ATI is P4.79 billion, of which some portion was already paid or deployed in 2025. “More broadly, given the Fund’s intergenerational, long-duration asset/liability profile, our strategy to protect purchasing power against fiat debasement is by investing in productive enterprises that can grow faster than the currency depreciates,” Consing said.