The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the Second Quarter 2018
Panama | November 23, 2018
The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the second quarter of 2018 (“2Q2018”). The following are highlights of the quarter:
The cumulative gross return for the year to 2Q2018 was -0.01%.
Net income loss for the same period was B/. 1.9 million (Note: B/. 1.00 = USD 1.00).*
As of the first semester, the Fund generated B/. 13.6 million in interests and dividends.
Net assets closed the quarter at B/. 1,276.8 million.
Results for the Period
The results in the first semester 2018, show a net income loss of B/. 1.9 million. Several factors contributed to these results, including weaker equities performance, especially in the emerging markets portion of the portfolio, the impact of the consecutive interest rates raises by the Federal Reserve, which underpinned the continued strength of US economy, and geopolitical risk uncertainty. However, due to the Fund’s appropriately positioned risk management profile, its short term/cash allocation provided a reduction in the overall global portfolio risk.
During the first semester of the year, the Fund generated approximately B/. 13.6 million in interest and dividends, compared to the
B/. 18.4 million of the same period in 2017.
At the end of the 2Q2018, FAP´s total assets were B/. 1,396.7 million. Net assets closed the quarter at B/. 1,276.8 million, compared to the B/. 1,301.8 in 2Q2017, considering a partial transfer of 2017 earnings to the National Treasury from the Fund, as requested by the Ministry of Finance and Economy, of B/. 31.5 millions.
SUMMARY OF THE QUARTER
The Fund’s Board of Directors approved the transfer of B/. 31.5 million to the National Treasury, attributable to interest and dividends generated in fiscal year 2017.
The Supervisory Commission issued its Opinion Report for the Fiscal Year 2017 regarding the administration of the Fund.
The Board of Directors of the Fund approved the divestment and exclusion of investments in securities related to the tobacco industry.
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 (USD); The Republic of Panama does not issue its own currency, and instead, the USD is used as legal tender and is considered the Fun´s functional currency. The financial reports provided by our global custodian are in USD 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