The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the Second Quarter 2017
Panama | November 22, 2017
The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the second quarter of 2017 (“2Q2017”). The following are highlights of the quarter:
- The cumulative gross return to 2Q2017 was 2.99%.
- Net income for the same period was B/. 36.7 million (B/. 1 = 1 USD*).
- The Fund generated B/. 7.4 million in interests and dividends during the 2Q2017.
- The Fund executed its Annual Investment Plan for the 2016/2017, implementing a global fixed income, a global inflation-linked portfolio, and a short duration portfolio.
- The Supervisory Commission (charged with reviewing the Board of Director´s Annual Report) held its annual meeting to discuss the Commission´s 2016 Opinion Report, and selected Mr. Jaime Moreno, representative of the private sector industry, as its President.
Results for the Period
The accumulated results (net income) for the first six (6) months came in at B/. 36.7 million, reflecting the Fund’s conservative risk/reward positioning strategy and execution of its Investment Plan. The returns in the Fund’s managed portfolios improved due to: 1) United States economic performance and its stock markets; 2) Earning of companies on the financial and information & technology sectors; and 3) improvement of emerging market economies.
In the first semester, the Fund generated approximately B/. 18.4 million in interest and dividends, exceeding that of the same period in 2016 by B/. 4.9 million.
At the end of the 2Q2017, FAP´s total assets were B/. 1,467.2 million. Net assets closed the quarter at B/. 1,301.8 million, compared to the B/. 1,266.4 at 2Q2016, higher by approximately 2.8% y/y.
SUMMARY OF THE QUARTER
The Annual Investment Plan for 2016/2017 implementation continued with the incorporation of a global fixed income portfolio, a global inflation-linked portfolio, and a short duration portfolio.
During the 2Q2017, the Board of Directors approved changes in its Internal Governance documents, renewed KPMG as its external auditor firm for the year 2017, and approved changes to both its Investment Policies and Standards, and Custody Service Guidelines.
SUMMARY OF AUDITED FINANCIAL STATEMENTS
*The official currency of the Republic of Panama is Balboas (B/.), which is at par and freely exchangeable with the United States dollar (B/.); The Republic of Panama does not issue its own currency, and instead, the B/. is used as legal tender, and is considered the Fund´s functional currency. The financial reports provided by our global custodian are in B/. and form the financial basis of this report.
About the 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