ASAFONDOS says that, according to the Law, the investments of the Pension Funds are made in the long term because the savings of the workers are required to pay pensions over an extended period and their profitability is measured in nominal terms.

The measurement of profitability for long periods of time implies that profits can continue to be generated despite the fact that profitability may be influenced by short-term conditions. This institution clarifies that the investments of the Pension Funds are made under market conditions and may experience variations due to cyclical phenomena such as inflation, a phenomenon that all the economies of the world are experiencing, which affects the real performance of all the investment portfolios.

ASAFONDOS also emphasizes that the variations occur consecutively and may recover in the medium term.

It also states that the pension system is stable and continues to record positive growth in contributors and contributions. The institution highlights that only in the last year, from may 2021 to the same month of this year, the number of contributors went from 747,127 to 812,196, which reflects a greater dynamism of the labor market with an increase of more than 65,000 people, equivalent to 8.7%; and in the same period, total contributions were collected for US$1,105 million.

Nominal profitability is the one that measures the yield of an invested capital in terms of monetary units, instead of in terms of purchasing power.

The Asociación Salvadoreña de Administradoras de Fondos de Pensiones  (ASAFONDOS), expressed through a statement on its Twitter account that the profitability of the Pension Funds is positive. According to official data from the Superintendencia del Sistema Financiero (SSF), the average of the last 36 months recorded as of may 2022 was +3.89%.

ASAFONDOS says that, according to the Law, the investments of the Pension Funds are made on a long-term basis because the workers' savings are required to pay pensions over an extended period of time and their profitability is measured in nominal terms.

The measurement of profitability for long periods of time implies that profits can continue to be generated despite the fact that profitability may be influenced by short-term conditions. This institution clarifies that the investments of the Pension Funds are made under market conditions and may experience variations due to cyclical phenomena such as inflation, a phenomenon that all the economies of the world are experiencing, which affects the real performance of all the investment portfolios.

ASAFONDOS also emphasizes that variations occur consecutively and may recover in the medium term.

It also states that the pension system is stable and continues to record positive growth in contributors and contributions. The institution highlights that only in the last year, from may 2021 to the same month of this year, the number of contributors went from 747,127 to 812,196, which reflects a greater dynamism of the labor market with an increase of more than 65,000 people, equivalent to 8.7%; and in the same period, total contributions were collected for US$1,105 million.

Nominal return is that which measures the yield of an invested capital in terms of monetary units, rather than in terms of purchasing power.