The Fondo de Ahorro de Panama Announces Payment to the Treasury Corresponding to 2014 Returns
Panama | May 21, 2015
The Board of Directors of the Fondo de Ahorro de Panamá ("FAP" or the “Fund") approved the payment of USD 57.4 million to the Treasury corresponding to 2014 returns.
These returns are the result of the operating income generated by the Fund, and is expected that this payment occur on June 1, 2015. As stated in Law 38 of June 5, 2012, which created FAP, such returns can be transferred to the General Budget on annual basis to be used for public investment.
For 2014, the Fund generated gross returns of 4.79% on assets, or the equivalent of USD 61.5 million, due to the positive movements of benchmark interest rates (e.g., US Treasuries) and its impact on the Fund's portfolio, which it was exposed mainly to fixed income instruments of moderate duration. This resulted in an operating income (returns) of USD 57.4 million, versus USD 1.5 million in 2013. In terms of direct interests, the Fund generated USD 25.8 million in 2014 versus USD 26.5 million in 2013. At the end 2014, the Fund’s net assets totaled USD 1,286.4 million, up 4.28% compared to 2013.
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.
For additional information visit www.fondoahorropanama.com