The investment funds have gained more and more ground within the dominican stock marketsince they allow investors to diversify their capital and reduce risks in a dynamic financial environment.
TO October last yearthe assets under administration managed through these instruments reached a total of 430,392 million pesoswhich is equivalent to 5.4% of the gross domestic product (GDP), according to data from the Dominican Association of Investment Fund Management Companies (Adosafi) recently cited by the Superintendency of the Stock Market (SIMV).
This performance has been possible thanks to a greater opening of active accounts which, for that same period, totaled the 66,360, 17,726 more than the 48,634 accounts reported until October 2024.
He 80% of the total managed corresponded to closed fundswhile 20% represented open-ended funds.
Cost structure
Recently, the SIMV published the first “Cost report investment in open and closed funds“, a tool that seeks to explain to investors, in a simple, detailed and accessible way, the variables that affect the costs associated with their investment in these instruments.
The document explains that there are commissions that the Investment Fund Manager (AFI) charges investors directly if they withdraw part of their capital before the permanence period – an operation commonly called rescue–, and which can also be charged by a stock exchange that mediates the purchase of investment quotas for closed-end funds.
Likewise, there are internal costs generated by the operation and management of the fund itself, which varies according to its duration – The longer term, the higher operating costs. These expenses are deducted from the fund’s assets and may affect the final profitability for investors and can be expressed either as a percentage of the fund’s total assets or as the total annual amount of the cost.
Corporate governance
In another report, the SIMV points out the need to strengthen the mechanisms of corporate governanceboth within the AFIs and other entities that actively participate in the stock marketencouraging greater independence in their boards of directors and greater inclusion in the gender diversity.
Both elements are considered fundamental to establish good practices of governance and improve decision making within the boards of directors that govern these institutions.
Independence
In matters of independencehe Corporate Governance Regulations of the SIMV requires that at least one of the members of the board of directors of the participants of the stock market be qualified as an “independent” external director.
Although, the requirement to have a independent foreign consultant implies a degree of compliance proportional that varies according to the council size of administration.
The independent external directors They are defined as experts whose connection with the administration of the company, its shareholders, directors and members of senior management are limited “exclusively to the status of member of the board of directors”, which does not prevent the holding of a percentage of shares that, in any case, cannot exceed 3% of the subscribed and paid-in capital.
In that sense, of the 224 advisors totals under mandatory corporate governance regime July 2025only 60 are independent.
Thus, the degree of independence general of the boards of directors of the participating actors dominican stock market is only 26.79%, 2.98 percentage points below the 29.77% at July 2024which shows a recoil and an expansion of the gap.
According to the data, the trust companies have the highest percentage of independent members (29%), while the securitizing companies They represent the smallest percentage, with only 17% of their members being independent.
“It is essential to reiterate the relevance of the independence in the boards of directorsgiven that this constitutes a key mechanism to safeguard the interests of all interested parties and promote the impartial decision making and objective,” states the report of the SIMV.
Gender parity
As for the gender parity of these boards of directorsit is considered that the balanced presence of women on boards, rather than promoting equal opportunities, “diversifies perspectives and experiences in decision-making.”
However, reality is far from ideal, since 509 advisors In total, only 113 are women, which implies the need for a much more equitable environment.
In this case, the securitizing companies They do lead the largest female representation, with 33% of the total, followed by securities brokers (30%) and the Management Companies of Investment Funds (SAFI), with 27%.
In general, the female presence in boards of directors of the entities within the stock market around 22.2% July of last year.
“The inclusion of women and independent directors In the councils it is only the first step; what is truly transformative is their participation in the strategic committeesin the definition of key policies and in the effective supervision of risks”, concludes the Superintendency of the Stock Market.
