Pension funds earned RD$34,235 million from investment gains between January and May

The Dominican Association of Pension Fund Administrators (ADAFP) reported that between January and May 2025, members affiliated with the member AFPs collectively earned approximately RD$34.235 billion thanks to the performance of investments made with their pension funds, despite fluctuations that have caused lower returns reflected in the individual capitalization accounts.

The AFP guild explained that, in the case of the month of May, affiliates earned 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 the account statements. The ADAFP stated that in the month that has just ended, the appreciation of the Dominican peso caused a temporary accounting decrease in the valuation of the portion of the portfolio invested in dollars of about RD$2,662 million, which was offset by investments in local currency.

The ADAFP said that this situation of fluctuations could last for a few months, but will tend to reverse as the exchange rate resumes its historical behavior. “This behavior responds to the natural dynamics of financial markets, which alternate between cycles of higher and lower profit,” the union said in a statement.

A similar situation occurred in April, when a total profit of RD$3.103 billion was generated for the affiliates, which allowed for a positive close, although the appreciation of the peso against the US currency caused a transitory accounting decrease in the valuation of the part of the portfolio invested in dollars of about RD$997 million.

To demonstrate the strategic importance of diversifying investments by currency, the guild highlighted that between January and March 2025, investments in dollars generated profits 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 should be evaluated from a long-term perspective.

“From ADAFP, we reiterate our commitment to transparency and responsible management of Dominican workers’ savings. Their resources are being managed with criteria of security, efficiency, and long-term vision, so that with their assets increased by the investment management of the AFPs, they can have a better pension at the time of their retirement,” stated the entity.

About ADAFP

ADAFP is the business union entity that groups and represents the Dominican AFPs, companies that are in charge of managing the savings of workers for their pensions. Its mission is to contribute to a quality retirement for all workers by promoting the 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.