The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the Third Quarter 2016
Panamá | December 23, 2016
The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the third quarter of 2016 (“3Q2016”). The following are highlights of the quarter:
- Net income for the year ending 3Q2016 was USD 57.3 million; the cumulative gross return of the portfolio for this period was 4.75%.
- In terms of income from interests and dividends, the portfolio generated USD 6.5 million during the 3Q2016; for the year ended 3Q2016 income from these sources was approximately USD 20.0 million.
- As part of the Fund’s international public tender process for global custodian services, an evaluation commission was appointed to evaluate all received proposals, and declared that The Northern Trust Company received the highest score on a best value basis.
Income for the Period
Net income results for 3Q2016 came in at USD 57.3 million, mainly from fixed income and equity securities, and reflecting the Fund’s conservative risk/reward positioning strategy. The returns in the Fund’s managed portfolios improved due to: 1) better performance in the sovereign bonds of major developed countries due to persistent global economic uncertainty, in addition to the impact stemming from the so-called “Brexit” referendum results; and 2) higher valuations in the emerging market portions of the equities portfolio.
The Fund generated approximately USD 20.0 million in interest and dividends (USD 6.5 million during the quarter), exceeding that of the same period in 2015, by USD 1.6 million.
At the end of the 3Q2016, total assets were USD 1,445.5 million. Net assets closed the quarter at USD 1,282.2 million, compared to the USD 1,215.6 for the same period in 2015.
SUMMARY OF THE QUARTER
The Fund, as part of the international public tender process for global custodian services, appointed an evaluation commission that was charged with evaluation all proposals received. This commission declared that the Northern Trust Company received the highest score on a best value basis. Additionally, during this quarter, the Fund participated as a guest exhibitor in the seminar “Stabilization Sovereign Wealth Funds: The International Experience”, promoted by the World Bank. The main purpose of this seminar was to promote a dialogue with the public and civil society on the pros and cons of a stabilization fund for development and stabilization in Paraguay.
SUMMARY OF AUDITED FINANCIAL STATEMENTS
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.