Stock Market Superintendent, Ernesto Bournigal Read, highlights that investment funds are an important financial instrument for productive activities in the country.
Closed-end investment funds play a crucial role in financing the economy. To date, there are 58 such funds registered in Securities Market Superintendence (SIMV), of which 20 are for company development and as of February 28, 2023, manage assets for RD $ 114,435 million, which represents around 2.5% of the Gross Domestic Product (GDP).
A relevant fact is that in the case of tourism alone, the construction of more than 6,000 hotel rooms has been financed through these funds.
The investment fund is an alternative that allows contributors to obtain profits from their resources, diversify their investments and achieve access to the capital market in a broader, more favorable and beneficial way, to which they probably would not have access individually.
Participating in today’s Economic Meeting, the Stock Market Superintendent, Ernesto Bournigal Read, together with Enmanuel Cedeño Brea, Mayor; Olga María Nivar, Director of Public Offering; Claudio Guzmán, Director of Participants and Valentín Sánchez, Director of Communications of the SIMV highlighted the positive impact of closed-end investment funds as a financial instrument for productive activities.
The official indicated that of the RD $ 114,000 million in closed investment funds, RD $ 38,582 million (33.7%) are in the real estate sector.
He added that there are 12,230 million (10.7%) in renewable energy, RD $ 12,610 million (11.05%) in tourism and RD $ 23,505 million (20.5%) in the commercial sector.
Meanwhile, RD $ 17,723 million (15.5%) are in public offering securities, RD $ 6,216 million (5.4%) in financial certificates and RD $ 279 million (0.2%) in the industrial sector. In addition, RD $ 2,084 million (1.8%) is in savings accounts and in current accounts RD $ 1,207 million (1.1%) in current accounts.
Likewise, the superintendent highlighted the placement of pension funds in the stock market, through investment funds.
He pointed out that the investment portfolio of the Dominican Pension System at the end of 2022 tabulated the figure of RD $ 950,064.80 million, which represents a growth of 10.72% or RD $ 92,005.01 million, compared to 2021, which reached RD $ 858,059.60 million.
He added that when breaking down the 2022 investment portfolio by economic subsector, in descending order, with respect to market value, the public sector composed of the central government (Ministry of Finance) and decentralized agencies (Central Bank) occupy the first places, with 56.53% and 18.86%, respectively.
Thirdly, there are investment funds that represent 8.56% of the investment portfolio, among which are real estate closed-end funds, housing development, and infrastructure, development of sustainable energy companies, and companies with social impact.
These are followed by financial intermediation entities, made up of multiple banks, savings and loan associations, and savings and credit banks, which together add up to 9.80%. Finally, there are public offering trusts (3.56%), private companies (2.68%) and multilateral organizations (0.01%).
The official stressed that the contribution of the stock market is to offer an investment and financing opportunity, under an orderly, equitable, transparent and well-regulated scheme.
Source:
Hoy
