The Fondo de Ahorro de Panama Grows Organically and Approves the Transfer of 2017 Returns to the National Treasury
Panama | May 11th, 2018
The Board of Directors of the Fondo de Ahorro de Panama (hereinafter “FAP” or “Fund”) approved on April 26 the transfer to the National Treasury of B/. 31.5 million, attributable to the interests and dividends generated in fiscal year 2017. As a result of this transfer, and with the Ministry of Economy and Finance (“MEF”) – settlor of the FAP - sharing our vision for higher organic growth of the Fund, the FAP manages to retain B/. 45.1 million, or 59% of the B/. 76.6 million in returns (net income) generated in 2017, strengthening in turn the foundational capital of the Fund. (Note: B/. 1.00 = 1.00 USD.)
Notably, since its inception in 2012, the FAP has distributed nearly B/. 131.5 million in returns to the National Treasury.
“From a historical perspective, 2017 was an exceptional year for the Fund. This performance was characterized by a prudent investing strategy designed to promote the organic growth of the Fund. This is part of the Board’s primary objective to establish and protect the Fund so that our country can count on a solid financial asset,” commented the Chairman of the Board, José N. Abbo.
Abdiel A. Santiago M., Secretary of the Fund, expressed that “the Fund closed 2017 with net assets of B/. 1,310.2 million, an amount higher than in 2016, and is the result of a prudent long-term strategic asset allocation, moderate risk aversion, both of which are based exclusively on economic and financial considerations. The returns for the year were associated with extraordinary benchmark performance, and specifically due to our equity markets exposure.”
As indicated in Executive Decree 1068 of September 6, 2012, which regulates the FAP Law, the Fund’s net earnings (returns), upon request of the MEF, may be withdrawn annually for their respective incorporation into the General State Budget, and for public investment purposes.
About Fondo de Ahorro de Panama
The Fund was created by Law 38 of June 5, 2012, whose main objectives are:
Establish a long-term savings mechanism for the Panamanian State; and
Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.