JMMB Group’s Pension Fund in the Dominican Republic is the Top-Performing Fund
JMMB Group’s pension fund in the Dominican Republic, AFP JMMB BDI, was the top-performing pension fund of the seven players in that market, as it provided its clients with a return of 9.19%; when compared to the market’s average of 7.5% on retirement savings, at the close of 2018. The results were revealed by the Pension Superintendence (SIPEN), the pension management oversight body in the Dominican Republic. The performance, according to Keith Duncan, JMMB Group CEO, translates to better retirement packages in the long-term for clients, which is expected to positively impact an individual’s standard of living.
Guillermo Arancibia, CEO of AFP JMMB BDI, said that the fund’s stellar performance reflects the company’s philosophy of having its clients’ best interest at heart, (by) delivering customized financial solutions, in a way that adds value to them, as well as to its stakeholders. He further notes, “The company has also sought to establish active treasury parameters within a risk management scheme, allowing it to increase its financial cost effectiveness, above the rest of the market, coupled with its expert asset management.”
Although one of the smaller players in the market, the Fund has seen steady growth over the last year, now boasting over 3,200 clients. This growth has been attributed largely to its customized service and exceptional client experience, in keeping with JMMB’s commitment to deliver on its brand promise.
The Fund is eyeing further growth in its pension fund management in the new financial year, which began April 1, with: a build out of its existing client loyalty programme, which sees clients being compensated for reinvestment of their investment portfolio; targeted switching strategy, which is focused on providing value-added services to pension account holders, who may be underserved by their current fund manager; and forging partnerships with large employers, to offer pension plans to their employees. AFP JMMB BDI is also exploring the roll-out an online pension fund platform, although no timeline has been provided. This online pension platform, which already exists in Jamaica, is designed to improve the user experience by allowing clients to better track their fund balances, update personal information, among other functionalities, while working alongside their advisors, to plan for their retirement. This is in line with the Group’s commitment to a ‘one client experience’ across its subsidiaries.
The JMMB Group is one of the few Jamaican companies that have been able to tap into the Spanish-speaking market, in the Dominican Republic, and has built-out its suite of financial solutions and presence in that financial market, to now include: pension funds management company – AFP JMMB BDI; mutual funds entity – JMMB Sociedad Administradora de Fondos de Inversion (JMMB Funds DR); and banking – Banco de Ahorro y Credito JMMB Bank. This is in keeping with the Group’s diversification strategy, as a regional financial entity, having rolled-out operations in the Dominican Republic in 2007, through its investments arm, JMMB Puesto de Bolsa. The Group as part of its strategic thrust, is looking to further scale up selected subsidiaries, in the Dominican Republic and introduce innovative financial solutions, as it seeks to deepen its market share.
In Jamaica, JMMB Group’s pension portfolio has also seen growth in funds under management, increasing by 15%, to approximately J$15.4 billion, year-over-year, for the period ending December 2018. The JMMB Fund Managers attributes this positive growth trajectory to the strategic partnerships forged with existing clients, financial education and implementation of its online pension fund management platform.