Investment managers eye Dominican workers’ US$7.99B pension fund

Santo Domingo.- The executive vice president of PioneerFunds investment management, on Wednesday said the pension fund should beinvested in mutual funds to diversify their current portfolios.

Yamil Isaias lauded the Pension Superintendence’s (SIPEN) effortsto manage the pension fund -which currently tops RD$367.7 billion (US$7.99billion)- to diversify them and benefit workers.

He warned however that the Dominican securities market facesmajor challenges, specifically in that sector, to achieve a healthy and correctdevelopment to boost the national economy. “One of these challenges is toachieve greater transparency in the real value of property traded in realestate funds, as this could affect healthy competition and the image of theindustry.”

"We recommend a differentiated rate decrease in thevalues ??of real estate. Thus there will be more transparency in the value ofproperty, further growth in the procurement of goods and high-value securitiesinvestment funds; strategies that ultimately will benefit the diversificationof pension funds," Isaias said.

The executive said the entry of qualified managers such aspension fund spurs investor confidence and make them more attractive to smallinvestors.

The investment expert spoke in the Dominican-Canadian Chamberof Commerce forum on "Investment Funds and Trusts" hosted by allcompanies in the sector.

Specialized in real estate, Pioneer Funds is the country’sfirst investment fund manager, with the highest market share.