Investment funds as State suppliers are a win-win for the Dominican Republic

Santo Domingo.- The Dominican Association of Investment Fund Management Companies (Adosafi) has highlighted the advantages for public finances and the population of having investment funds as state suppliers.

Santiago Sicard, executive president of Adosafi, explained that part of the resources of investment funds in various sectors of the economy can contribute significantly to the Dominican State’s finances and efficiency.

Investment funds, especially those dedicated to the real estate or infrastructure sectors, can directly finance or through Public-Private Partnerships projects such as roads, hospitals, civic centers, offices or service sites for the population or state use, schools, power plants, among others, avoiding the State having to invest large sums in fixed assets and allowing it to redirect and focus those public resources on providing critical services to the community.

For example, instead of the state spending millions to build, maintain, and operate a hospital, the investment fund can build and maintain it while the state exclusively spends what is necessary to pay for its use and, if applicable, operate it or subcontract its operation with a third party.

“This is beneficial for the state and even for the thousands of investors and millions of workers who save for their future pension in the AFPs, since their investments participate in the generation of wealth for the country and at the same time, with the state being their counterpart and participating in specialized sectors and segments, they can experience less risk and higher returns,” added Mr. Sicard.

Investment funds in the Dominican Republic have already demonstrated the advantages of being experts in the sectors in which they invest and, being part of the Stock Market and being regulated, they have high standards of quality, efficiency, transparency, and reputation, qualities that are ideal and desirable for any supplier of the Dominican State.

Sicard added that investment funds can play a crucial role in the financing and development of public projects and services, providing capital and expertise to improve infrastructure and the well-being of society.

Adosafi seeks the promotion and sustainable development in the country of investment funds, which contribute to the growth of the national economy and the benefit of its investors and the country.