Administrators say pension funds record profits again due to the rise of the dollar

The Dominican Association of Pension Fund Administrators (ADAFP) reported that at the end of March the Pension Funds increased by RD$6,230.8 million due to the return on investments.

This confirms that the reduction registered in February was a transitory phenomenonThe organization said in a statement.

The ADAFP details that of the profits obtained in March, RD$2,596.8 million were the result of the revaluation of the portfolio invested in dollars due to the rise of 79 cents in the rate of said currency during the month, confirming the normalization of profitability, as has been historically happened.

These data confirm that The rise of the dayorlar, which closed March at RD$55.2046, produced a 41.7% increase in the fundand that when the rate of this currency rises, a favorable impact is reflected in the global results and of each affiliate.

The ADAFP indicated that at the end of March, 24.0% of pension funds were invested in dollars.

“As long as the dollar rate continues to recover its normal course, the valuation of that portion of the portfolio invested in dollars will also rise,” the note highlights.

The organization specifies that pension funds are investment funds whose value fluctuates over time and that historically hasn recorded a positive return of 12.4%. Performance is measured in the long term as it is a retirement savings that is built over decades, the union said.

At the end of March, the funds managed by the Crecer, Popular, Reservas, Romana and Siembra AFPs amounted to RD$757,052.0 million, for an increase of RD$8,979.8 million in relation to the previous month, an amount that includes the profitability mentioned above, as well as the contributions workers, of about RD$2,749.0 million in the month.

In addition, at the end of the same month, the portfolio invested in pesos managed by the ADAFP AFPs amounted to RD$576,324.6 million and investments in dollars reached US$3,291.6 million, concludes the statement.

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