Press Release

The Fondo de Ahorro de Panamá celebrates 10 years of achievements, leadership in transparency and prudent management

Panama | April 21, 2023

  • The Fondo de Ahorro de Panamá ("FAP" or "Fund") celebrated its 10th anniversary with an event that highlighted the importance of protecting and managing national savings with transparency and prudence.

  • The event emphasized the successful management and governance structure of the FAP, including its independent, professional, and transparent administration, which has positioned it with the highest levels of international standards. The Fund has become a strategic asset and a pillar of the Panamanian economy, thanks to its moral solvency and commitment to responsible management.

The FAP celebrated its tenth anniversary with an event that highlighted the importance of having a sovereign wealth fund for Panamá.

Attendees included authorities from the Panamanian Government and the National Assembly of Deputies, representatives from the Banco Nacional de Panamá and the Embassy of the United States, senior executives from international and local financial markets, former directors of the FAP’s board of directors and members of the FAP’s Supervisory Commission, as well as students from several local universities, among other guests.

The event began with welcoming remarks from the Chair of the FAP’s board of directors, Anamae Maduro de Ardito Barletta. The Chair emphasized Panama's interest in having a national savings vehicle dating back to more than 120 years, starting with the first Constitution of 1904 and the creation of the Constitutional Fund. This Constitutional Fund had an initial capital of B/. 6 million because of the pecuniary benefits related to the opening of the interoceanic Canal. *

The Chair added that “the FAP was borne out of the promulgation of Law 38 of June 5, 2012, to serve as a tool in contingencies due to sovereign emergencies, and in 2020, it responded to the country's needs for the first time by providing B/. 105 million to support the national emergency due to the Covid-19 pandemic. This added to the distributions of income between 2013 and 2017, transfers to the Treasury in the amount of B/. 236 million, without affecting the seed capital.”

Several topics related to the Fund's performance were discussed during the event. Since its inception, the FAP has accomplished significant achievements that have earned it recognition at the international level as one of the most transparent sovereign wealth funds. The Fund has generated B/. 341 million in profits from the beginning in 2013, to the end of the first quarter of 2023 ("1Q2023"), returning an accumulated 32% over that period, and an annualized return of 2.8%. At the end of 1Q2023, the FAP had net assets of B/. 1,336.7 million.

The Secretary/Chief Investment Officer of the FAP, Abdiel A. Santiago, mentioned that “although the 1Q2023 results are encouraging, we continue to face various structural challenges, including high inflationary pressures and geopolitical conflicts. For this reason, we will continue to diversify our portfolio with different asset classes that we hope will provide us with a balance in the risk and return relationship of the Fund in the long term.” 

The event also featured Mr. David M. Rubenstein, Co-founder and Co-chair of private equity firm The Carlyle Group, as keynote. Mr. Rubenstein provided attendees with his views and observations on the global economy, geopolitical risks, and the importance of long-term investment.

Achievements and Alliances

The Fund has established strategic alliances with various organizations and entities to strengthen its institutionality, including:

  • The International Forum of Sovereign Wealth Funds (IFSWF) for the adoption of generally accepted principles and practices (Santiago Principles) by sovereign wealth funds for the asset management framework;

  • The World Bank and its RAMP program to sign a technical cooperation agreement to strengthen the Fund's asset management and receive continuous transfer of technical and managerial knowledge; and,

  • The Principles for Responsible Investment (PRI) promulgated by the United Nations to contribute to responsible investments and the development of a more stable financial system.


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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