Press Release

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

Panama | October 28, 2020

The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the second quarter of 2020 (“2Q2020”). The following are highlights of the quarter:

  • The cumulative gross return for the year to 2Q2020 was 1.99%.

  • Net income for the same period was B/. 25.6 million.*

  • During the 2Q2020, the Fund generated B/. 14.3 million in interests and dividends.

  • Net assets closed the quarter at B/. 1,418.7 million.

FINANCIAL RESULTS

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Results for the Period

The accumulated results for the first six (6) months of 2020, show a net income of B /. 25.6 million. The positive results in the 2Q2020 period was driven mainly by growing investor optimism of an incipient economic recovery, the relaxation of the quarantine measures imposed by the countries to control the spread of COVID- 19, and the unprecedented fiscal and monetary stimulus from governments and their Central Banks, especially in the United States.

During 2Q2020, the Fund generated interest and dividends in the order of approximately B /. 14.3 million, compared to B/. 15.3 million generated in the same period 2019.

Assets

At the end of the 2Q2020, the Fund´s total assets were B/. 1,509.5 million. Net assets closed the quarter at B/. 1,418.7 million, compared to the B/. 1,355.3 at 2Q2019 end.

SUMMARY OF THE QUARTER

  • The Board of Directors approved the 2019 Annual Report and the execution of the Annual Investment Plan for the 2020/2021 period.

  • The Fund’s Supervisory Commission, which represents the civil society, issued its Opinion Report for 2019.

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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