Dominican Republic's Pensions Superintendency (SIPEN) published an analysis of pension fund investments showing that a growing share of investment growth in recent years has been channelled to private-sector projects, consistent with the mandate in Law 87-01 to support the national economy. Private-sector investment growth rose year-on-year between 2020 and 2024, moving from 13% to 19.45% between 2021 and 2022, increasing to 26% in 2023 and remaining elevated in 2024, when it accounted for 33% of total pension fund investment growth. Portfolio diversification has been supported by the approval of new investment funds as eligible assets, with a large proportion directed to energy and tourism. As of 31 January 2025, pension fund assets were allocated 48.83% to Ministry of Finance bonds, 19.07% to Central Bank debt securities, 15.70% to investment funds, 5.74% to bonds issued by financial intermediaries, 4.57% to public offering trusts, 3.80% to financial certificates, 2.0% to corporate bonds and 0.30% to publicly offered shares, compared with 100% invested in bank certificates of deposit when the individual capitalization system began in July 2003. SIPEN noted that, despite a wider set of available market options for pension fund administrators, additional investment instruments are still needed to continue supporting the real economy and deepen domestic capital markets.
Pensions Superintendency (SIPEN) 2025-02-24
Dominican Republic's Pensions Superintendency reports pension fund investment growth shifting toward private sector projects
The Dominican Republic's Pensions Superintendency (SIPEN) reported that pension fund investments increasingly support private-sector projects, aligning with Law 87-01 to bolster the national economy. Private-sector investment growth rose from 13% in 2021 to 33% in 2024, with significant allocations to energy and tourism sectors. SIPEN emphasized the need for more investment instruments to enhance the real economy and domestic capital markets.