The Board of Directors of The Fondo de Ahorro de Panama Approves the Global Custody Contract with The Northern Trust Co.
Panama | January 19th, 2017
- The Fondo de Ahorro de Panama further strengthens the protection of its assets through this relationship with The Northern Trust Co.
- The contracting process was based on the conclusions of an independent Evaluation Commission, composed of Panamanian financial experts
The Fondo de Ahorro de Panama (“FAP” or “Fund”) is pleased to announce that, as a result of an international competitive bidding process, the Board of Directors of the Fund approved the Global Custodian Services contract with The Northern Trust Company. This process began on June 2016, and was completed in accordance to the FAP’s bidding policies and procedures. The Banco Nacional de Panama, acting as trustee of the FAP, signed the contract, which will have a duration of five years.
José N. Abbo, Chairman of the FAP’s Board of Directors, expressed that “this result reflects the valuable contribution made by the Evaluation Commission in terms of strengthening the independence and transparency of the bidding process.” Abdiel A. Santiago M., Secretary of the FAP, commented that “The Northern Trust Company has extensive experience as a full-service provider of financial services, especially in the custody of securities business, which represents an integral part of the management of the Fund, and international best practices for sovereign wealth funds.”
The selection process included the publication of a call to bid notice through local and international outlets, and receipt of technical and financial offers for evaluation from participating financial entities. These offers were verified, analyzed, weighted, and rated by an independent Evaluation Commission composed of Panamanian experts on investment and custody of financial assets. As result of this process, The Northern Trust Company, in addition to complying with the established core requirements, presented the best value offer (both technical and financial). The World Bank Treasury, in connection with its Reserves Advisory and Management Program (“RAMP”), provided the FAP with technical support and assistance in structuring the bidding process.
About Northern Trust Corporation
The Northern Trust Corporation, holding company of The Northern Trust Company, has credit ratings by Moody’s (Aa2), Standard & Poor’s (AA-), and Fitch Ratings (AA). It is an international financial services institution headquartered in Chicago, Illinois, USA, and provides investment management, global custody, banking and fiduciary services. The Northern Trust Corporation has approximately USD 6.7 trillion assets under custody and USD 946 billion in assets under management. For additional information, visit: www.northerntrust.com
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.
Contact: Administration, +507-394-5776/5706, email@example.com
For additional information visit www.fondoahorropanama.com