Press Release

The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the First Quarter 2020

Panama | August 27, 2020

The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the first quarter of 2020 (“1Q2020”). On July 30, 2020, the Fund published its preliminary (unaudited) second quarter 2020 results (in Spanish). The following are highlights of the quarter:

  • The cumulative gross return for the year to 1Q2020 was -2.93%.

  • Deficit of income over expenses for the same period was B/. 41.7 million.*

  • During the 1Q2020, the Fund generated B/. 7.3 million in interests and dividends.

  • Net assets closed the quarter at B/. 1,351.4 million.

FINANCIAL RESULTS

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Results for the Period

The accumulated results for the first three (3) months of 2020, show a net loss of B /. 41.7 million. The quarter’s results reflect the impact of the COVID-19 health crisis on global equities and fixed income markets.

Assets

At the end of the 1Q2020, the Fund´s total assets were B/. 1,425.8 million. Net assets closed the quarter at B/. 1,351.4 million, compared to the B/. 1,322.9 million at 1Q2019 end.

SUMMARY OF THE QUARTER

  • The Board of Directors unanimously elected Anamae Maduro de Ardito Barletta and Jean Pierre Leignadier as president and vice-president, respectively.

  • The Board of Directors of the Fund approved the audited Financial Statements for the year 2019.

  • The National Assembly approved Law No. 296, which defined the use of the Fund due to the COVID-19 health crisis.

SUMMARY OF AUDITED FINANCIAL STATEMENTS

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* 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 Fund´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:

  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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