Press Release
The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the First Quarter 2019
Panama | January 3, 2020
The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the first quarter of 2019 (“1Q2019”). The following are highlights of the quarter:
The cumulative gross return for the year to 1Q2019 was 3.84%.
Net income for the period was B/. 48 million.*
During the 1Q2019 the Fund generated B/. 7.5 million in interests and dividends.
Net assets closed 1Q2019 at B/. 1,322.9 million.
FINANCIAL RESULTS
Results for the Period
The 1Q2019 results show a net income of B /. 48 million. Among the main factors contributing to these results are a) the strengthening of the US stock market and b) a less “hawkish” positioning of the U.S. Federal Reserve in its monetary policy, resulting in lower US treasury bonds yields and therefore better valuations in the Fund’s fixed income portfolios.
During the 1Q2019, the Fund generated approximately B/. 7.5 million in interest and dividends, compared to B/. 6.6 million in the same period in 2018.
Assets
At the end of the 1Q2019, the Fund´s total assets were B/. 1,394.5 million. Net assets closed the quarter at B/. 1,322.9 million, compared to the B/. 1,306.4 in 1Q2018.
SUMMARY OF THE QUARTER
The Board of Directors approved the use of the Barclays Global Aggregate Index, which will begin to phase in the inclusion of Chinese certain fixed income instruments.
The Board of Directors approved the technical advisory contract amendment with the World Bank Treasury in order to continue strengthening the Fund’s investment strategy and institutional objectives.
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 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:
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, administrador@fondoahorropanama.com
For additional information visit www.fondoahorropanama.com
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