June 2017

DominicanRepublic CountryProfile:

• Population 10,088,598 • A young population: ▪

Median age 26.1 year-old ▪ 29.5% are under 14 year-old

• $159.32 Billion GDP in 2016 (PPP)

• $15,777 GDP per capita (PPP)

• Population below the poverty line: 42.2% (2004)

• Rural population: 31% (urbanization rate of 2.1%)

• Literacy rate 87% • Banking penetration 29% • 8.8M mobile phones + 90%

mobile penetration. (Graph Below)

• Annual remittance: 7.33% MapI Sources:IFCandWorldBankGroup TheSovereignWealthFundsSWFs SovereignWealthFunds(SWFs)haveemergedaspotentialsolutionstoactivelymanageforeignreservesaccumulatedfromcommoditysalesorstrongexports.Theycanbemanagedeitherbya state-controlled entity or external managers, on behalf of the nation. These government-ownedinvestmentvehiclesaredesignedtoserveprimarilymediumtolongtermeconomicandfinancialobjectives. They can have different andmultiple objectives such as: (i) the stabilization of the economyfrom the volatility of the prices of the natural resources they depend on, protecting fromcommodityshocks,(ii)thefunctionofreservefundforthetimeofeconomicandfinancialcrisis, (iii) the diversification and internationalization of the domestic economy, (iv) the support ofnationaldevelopment,(v)thetransferofwealthacrossgenerationsandmanyothergoalsandmissions.

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SWFscanpursuesomeoftheaboveobjectivesseparatelyorconcurrentlyandthiscanbedonewithonemainfundorwithsubdividedfundswithspecificobjectives. According to Adam D. Dixon and Ashby H. B.Monk, resource-rich developing countries canbenefitfromsettingup,subsequently,threeseparateSWFssuchas:(i)astabilizationfund(ii)adevelopmentfundandlastly(iii)asavingfund.Onceachievedthemaingoalofthestabilizationoftheeconomy,infact,theSWFcouldfocusmoreonfosteringnationaldevelopmentandonthetransferofwealthtofuturegenerations.

Furthermore,asmanyofthenewupcomingSWFsaresponsoredbyEmergingCountries,asinthecaseofAngola,Brazil,DominicanRepublicandothers,manyofthesebrandnewSWFsarecalled to perform an important role in the promotion of the development of the sponsorcountries. Development consists not only in increasing the assets of the SWF and in the financial andeconomicgrowthoftheSponsorCountry’s,butitreferstoamuchwiderdefinitionthattakesintoaccounttheoverallwealthoftheCountryandthestandardoflifeoftheentirepopulationthatis,orshouldbe,therealultimatebeneficiaryoftheFund’sactivities. Inthissense,itincludesbothsocialandeconomicgoals,measurablethrough,thereductionoftheCountry’spovertylevel,theincreaseofthestandardoflifeofcitizensandtheconstructionofthenecessaryinfrastructuresforasoundandpromptdevelopmentoftheCountry,suchasroads,hospitals,schools,etc.

SWFsintheAmericas

The region with the 23rd highest asset in the world in terms of SWFs, which is the AlaskaPermanentFundfromtheUnitedStates,whereoilistheoriginofitsfunds,SWFshavebeenanapproached fundplanstarting fromthe1854,whereTexasPermanentSchoolFund fromtheUnitedStateswasthefirsttobeanactiveSWF.AspertheSWFInstitute,currentlythereare10countrieswith22fundauthoritiesalreadyactiveSWFswhichareshowninthebelowtable:

Country Fund Assets Inception Origin $Billion

UnitedStatesof AlaskaPermanentFund[21] 54.8 1976 Oil America Alaska UnitedStatesof PermanentSchoolFund 37.7 1854 PublicLands America

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June 2017

Texas UnitedStatesof NewMexicoStateInvestment 20.2 1958 Non-commodity America Council NewMexico UnitedStatesof PermanentUniversityFund 17.3[24] 1876 PublicLands America Texas Chile SocialandEconomicStabilization14.7 2007 Copper Fund Canada AlbertaHeritageSavingsTrust 13.4 1976 Oil Alberta Fund[25] Chile PensionReserveFund 9.4 2006 Copper Peru FiscalStabilizationFund 7.9 1999 Non-commodity UnitedStatesof PermanentWyomingMineral 7.3 1974 Minerals America TrustFund Wyoming Mexico OilRevenuesStabilizationFund 6 2000 Oil ofMexico Trinidad&Tobago 5.7 2007 Oil UnitedStatesof NorthDakotaLegacyFund 4.3 2011 Oil&Gas America NorthDakota UnitedStatesof AlabamaTrustFund 2.7 1985 Oil&Gas America Alabama UnitedStatesof Utah-SITFO 2 1896 Land&Mineral America Royalties Utah UnitedStatesof LouisianaEducationQualityTrust1.3 1986 Oil&Gas America Fund Louisiana Panama FondodeAhorrodePanama 1.2 2012 Non-commodity Bolivia FundforProductiveIndustrial 1.2 2012 Non-commodity Revolution UnitedStatesof OregonCommonSchoolFund 1.2[26] 1859 PublicLands America Oregon Venezuela FEM-Macroeconomic 0.8 1998 Oil StabilizationFund Brazil SovereignFundofBrazil 0.5 2008 Non-commodity

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June 2017

UnitedStatesof WestVirginiaFutureFund X 2014 Oil&Gas America WestVirginia Mexico FondoMexicanodelPetroleo X 2014 Oil&Gas paralaEstabilizacionyel Desarrollo Sources:SWFInstitute X=Informationundisclosedpublicly

TableI

Due to the successful and high assets and returns gained via SWFs, the number of ACCscountrieshasgrownuntil itbecamethehighestnumberofcounties thatareSWFsactive.Asper SWF Institute the percentage of Middle East countries and American countries are thehighestintheworld,andarepresentedinthegraphbelow.

SWFsbyRegion

Africa,2.7 Other,1.4 Americas,2.8

Europe,13.11

Asia,39.74

MiddleEast,40.24

GraphI Source:SWFInstitute

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June 2017

DominicanRepublicasagrowingeconomy TheDominicanRepublic isoneof the fastestgrowingeconomies in theCaribbean.Themostimportant sector of the economy is services, specifically tourism, finance andtelecommunications. Mining has also been growing in importance, and ferronickel and goldproduction is expected to continue increasing. TheDominicanRepublic is alsodependentonremittancesandonrevenuesfromthefree-tradezones. DominicanRepublicwasjustlikeallothercountriesthatwereaffectedbytheeconomiccriseswhichhit theworldend2008beginning2009.However,DominicanRepublic’sGDPhasbeengrowing with an average of 6.5% in the past 10 years which is a sign of recovery. Also,DominicanRepublicbecameoneofthefastest–growingeconomies,afterthe7%yearonyearYOYgrowth in2015, then followed thatwitha continuous robustwitha6.6%YOY for2016.Looking ahead, the post-election fiscal adjustments coupledwill moderate the pace of localeconomicactivitytowardsapotentialgrowthrateof5.5%to6%by2017. Therearedifferent factorsofDominicanRepublic thatmakesof it auniqueand competitivecountry.Thefirst feature is the fact thatDominicanRepublic isconsideredoneof the largestcountriesintheworldwithitsuntappednaturalresources,suchasferronickel,coalandgold.Theseresourcesmainlyexist intwocitieswhichareOyaTologoi(copperandgold)andTavanTolgoi(coal). The second feature of Dominican Republic is the young and growing working population,where58%ofthepeopleinDominicanRepublicarebelowtheageof30,and29.5%arebelowtheageof14.WorkingpopulationinDominicanRepubliccontainsmainlypeoplebetweentheageof15and64,and isabout65.4%of itspopulation.Theworkingpopulation inDominicanRepublicisexpectedtoincreasemoreandtoreachashighas70%by2022. The third feature at Dominican Republic is the ease and comfort of doing business at thecountry.DominicanRepublicwasrankedasthenumber103,beatingitsneighbors–NicaraguaandHonduras.ThereasonthatmadeDominicanRepublicberankedas103thisthefactthatitemphasizes on investors protection when setting up trading and investment rules, such astaxationamendments. The above mentioned competitive advantages and features are all factors which aremotivating forDominicanRepublic to start beingmore active in SWF. The fact that SWF ismore likely to be successful and beneficial with the existing of natural resources, givesDominicanRepublicaplus.Moreover, socialadvantagesof theSWFwhicharemainlyhavingmore job opportunities, and preventing poverty, will be beneficial for the highworking andyouthpopulationexistinginDominicanRepublic. DISCLAIMER:EmintadLLC,postsareforeducationalandinformationalpurposesandshouldnotbe intended as a recommendation or solicitation to engage in any particular securitiestransaction or investment strategy. Please note that investment is subject to documentationwhichcontainacomprehensivedisclosureofapplicablerisks.

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