Press Release

The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the Third Quarter 2019

Panama | March 10, 2020

The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the third quarter of 2019 (“3Q2019”). The following are highlights of the quarter:

  • The cumulative gross return for the year to 3Q2019 was 8.45%.

  • Net income for the same period was B/. 104.9 million.*

  • During the 3Q2019, the Fund generated B/. 23.3 million in interests and dividends.

  • Net assets closed the quarter at B/. 1,379.9 million.

FINANCIAL RESULTS

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Results for the Period

The accumulated results for the first nine (9) months of 2019, show a net income of B /. 104.9 million. The following factors contributed to these results: a) a positive stock market performance, as represented by the MSCI All Country World Index, b) an expansionary policy applied by the Federal Reserve in reducing interest rates by 0.25%, in addition to liquidity injection into short-term monetary markets, and c) positive expectations with respect to the results of the trade talks between the U.S. and China.

During 3Q2019, the Fund generated interest and dividends in the order of roughly B /. 23.3 million, compared to B/. 20.4 million generated in the same period of 2018, due to a relatively higher allocation to fixed income in 2019.  

Assets

At the end of the 3Q2019, the Fund´s total assets were B/. 1,528.5 million. Net assets closed the quarter at B/. 1,379.9 million, compared to the B/. 1,287.7 at 3Q2018 end.

SUMMARY OF THE QUARTER

  • FAP participated in the International Forum of Sovereign Wealth Funds (IFSWF) Annual Meeting, hosted in Alaska, USA.

  • The Fund initiated the process for proposals related to private equity asset management services for its global portfolio.

SUMMARY OF AUDITED FINANCIAL STATEMENTS

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*The official currency of the Republic of Panama is Balboas (B/.), which is at par and freely exchangeable with the United States dollar (USD); The Republic of Panama does not issue its own currency, and instead, the USD is used as legal tender and is considered the Fund´s functional currency. The financial reports provided by our global custodian are in USD and form the financial basis of this report.

About the Fondo de Ahorro de Panama

The Fund was created by Law 38 of June 5, 2012, whose main objectives are:

  1. Establish a long-term savings mechanism for the Panamanian State; and

  2. Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.

Contact: Administration, +507-394-5776/5706, administrador@fondoahorropanama.com

For additional information visit www.fondoahorropanama.com

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