The president of the International Federation of Pension Fund Administrators (FIAP) said that the Dominican Republic’s Pension fund system is very robust but lacks the necessary diversification of investments in key sectors of the economy.

Guillermo Arthur said that the country’s pension fund investments are too concentrated and should resort to new instruments “to provide safety and stability to the workers, who are the owners of the funds.”

He said that these investments must diversify not only within the Dominican Republic but also abroad, in government bonds, corporate shares and private company bonds. “In other words, don’t put all your eggs into one basket, as the old saying goes,” said Arthur.

”I think that is what is missing in this country’s pension system,” said Arthur, highlighting the fact that through this mechanism “the economy, the capital markets and investments receive a natural impulse, which has a very beneficial effect.”

He said that in this way the pension system would be contributing to the improvement of workers’ pensions and boosting national economic development.

Arthur expressed these opinions while speaking in the international pension fund managers’ seminar which was held for two days in this tourist venue of the province of La Altagracia, attended by directors of social security agencies, experts and researchers of the sector and economists and presidents of Central Banks of the United States, Europe and Latin America.

The congress was organized by the International Federation of Pension Fund Administrators (FIAP) and the Dominican Association of Pension Fund Managers (ADAFP).

In his address, Arthur said that the individually funded pension systems have been around for some time and are starting to consolidate, pointing out that the Dominican system has just completed 10 years, the Chilean system has been in place for 30 years and the Peruvian system for 18 years.

The president of the International Federation of Pension Fund Administrators (FIAP) said that the Dominican Republic’s Pension fund system is very robust but lacks the necessary diversification of investments in key sectors of the economy.

Guillermo Arthur said that the country’s pension fund investments are too concentrated and should resort to new instruments “to provide safety and stability to the workers, who are the owners of the funds.”

He said that these investments must diversify not only within the Dominican Republic but also abroad, in government bonds, corporate shares and private company bonds. “In other words, don’t put all your eggs into one basket, as the old saying goes,” said Arthur.

”I think that is what is missing in this country’s pension system,” said Arthur, highlighting the fact that through this mechanism “the economy, the capital markets and investments receive a natural impulse, which has a very beneficial effect.”

He said that in this way the pension system would be contributing to the improvement of workers’ pensions and boosting national economic development.

Arthur expressed these opinions while speaking in the international pension fund managers’ seminar which was held for two days in this tourist venue of the province of La Altagracia, attended by directors of social security agencies, experts and researchers of the sector and economists and presidents of Central Banks of the United States, Europe and Latin America.

The congress was organized by the International Federation of Pension Fund Administrators (FIAP) and the Dominican Association of Pension Fund Managers (ADAFP).

In his address, Arthur said that the individually funded pension systems have been around for some time and are starting to consolidate, pointing out that the Dominican system has just completed 10 years, the Chilean system has been in place for 30 years and the Peruvian system for 18 years.