Press Release

The Fondo de Ahorro de Panama Approves its Annual Investment Plan

Panama | January 20, 2023

The board of directors (the “Board”) of the Fondo de Ahorro de Panama’s (the “Fund”) in its regular board meeting approved its Annual Investment Plan for the 2022/2023 period (the “Plan”), which establishes the Strategic Asset Allocation (the “Allocation”) and defines the Strategic Portfolio of the Fund.

The expected Allocation (maximum limits) by asset classes of the Fund’s Strategic Portfolio is as follows:

  • Short-Term Investments/Cash: 20%

  • Global Fixed Income: 36%

  • Inflation-linked Bonds: 2%

  • High Yield Bonds: 5%

  • Global Equities: 27%

  • Alternatives Investments (e.g., private equity, infrastructure, and others): 10%

Relative to the previously approved portfolio (2021/2022), the new Strategic Portfolio reflects a reduction in its short-term investments/cash, global fixed-income, and inflation-linked bond allocations, and an increase in its alternative investments and global equities allocations. Additionally, the Board approved the inclusion of high yield bonds as an eligible asset class for the Fund.

The Plan is structured with strict adherence to economic/financial reasoning and applicable legal standards, considering key criteria such as the Fund´s 1) objectives and investment horizon; 2) liquidity needs; 3) capital preservation 4) diversification; and 5) risk-adjusted returns expectations.

In accordance with its bylaws, the Board must approve the Plan and the Allocation annually. The Board may consider a tactical asset allocation change in the portfolio in response to unexpected changes in the financial markets conditions, and in furtherance of protecting the assets of the Fund

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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