The Dominican Association of Pension Fund Administrators (ADAFP) reported that between January and May 2025, members of AFP gained a consolidated RD$34,235 million thanks to the performance of investments made with their pension funds, despite fluctuations that have caused lower returns reflected in individual capitalization accounts.
The AFP guild explained that, in the case of May, members gained RD$3,242 million due to the profitability of pension fund investments in May, despite the impact of temporary market conditions that have caused lower returns in account statements. The ADAFP stated that in the month that ended, the appreciation of the Dominican peso caused a temporary accounting decrease in the valuation of the dollar-denominated portion of the invested portfolio of RD$2,662 million, which was compensated by investments in local currency.
The ADAFP said that this situation of fluctuations could last for several months, but will tend to reverse as the exchange rate returns to its historical behavior. “This behavior responds to the natural dynamics of financial markets, which alternate between cycles of higher and lower gain,” the guild said in a statement.
A similar situation occurred in April, when a total gain of RD$3,103 million for members was generated due to returns, allowing them to close in the positive, although the appreciation of the peso against the US dollar caused a temporary accounting decrease in the valuation of the dollar-denominated portion of the portfolio of RD$997 million.
To show the strategic importance of diversifying investments by currency, the guild highlighted that between January and March 2025, dollar-denominated investments generated gains converted to pesos of RD$9,198.56 million, which demonstrates the value of this diversification decision.
The ADAFP reaffirmed that the profitability of pension funds must be evaluated with a long-term perspective.
“From the ADAFP we reiterate our commitment to transparency and responsible management of the savings of Dominican workers. Their resources are being managed with criteria of security, efficiency and long-term vision, so that with their increased patrimony by the management of AFP investments they can count on a better pension at the time of their retirement,” the entity stated.
About ADAFP
The ADAFP is the business guild entity that groups and represents Dominican AFPs, companies that are in charge of managing workers’ savings for their pensions. Its mission is to contribute to a quality retirement for all workers by promoting best management practices, legal security, and financial sustainability. Its members are AFP Popular, AFP Crecer, AFP Siembra, AFP Reservas, AFP Romana and AFP JMMB-BDI.
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