The Fondo de Ahorro de Panama Approves its Annual Investment Plan for 2017 / 2018
Panama | July 31, 2017
The Board of Directors (the “Board”) of the Fondo de Ahorro de Panama’s (the “Fund”) in a regular board meeting held on July 27, 2017, approved its Annual Investment Plan for the 2017/2018 period (the “Plan”).
Through this Plan, the Board, in strict adherence to economic/financial fundamentals and applicable law, defines the Strategic Asset Allocation (“SAA”) for the Fund’s Strategic Portfolio. This allocation is based on criteria such as the Fund's investment objective and horizon, and the Fund’s liquidity needs, coupled with the Board’s defined risk tolerance. In accordance with the Fund’s law, the Board must approve its investment plan on an annual basis.
The technical design of the SAA follows a capital preservation mandate and takes into account a set of quantitative and qualitative criteria that contributes to an expected optimal risk/return profile of the Strategic Portfolio.
The following is the composition of the Fund’s Strategic Portfolio for the 2017/2018 period:
- Cash: 5%
- Global Fixed Income: 71%
- Inflation-linked Bonds: 4%
- Equities (Stocks): 20%
Compared to the previous portfolio (2016/2017 period), the current Strategic Portfolio reflects an increased allocation to equity of 15% to 20%. “This increase reflects more encouraging expectations about global economies, especially in the US where most of our assets are invested, and given our exposure to fixed income assets, which are susceptible to interest rate hikes," Abdiel A. Santiago M., Secretariat of the Fund commented.
José N. Abbo, Chairman of the Board, said that “the technical design of the SAA considers the Fund's capital preservation mandate and quantitative/qualitative criteria that contribute to the optimization of the risk/return expectations of our Strategic Portfolio, and in-line with our long-term vision.”
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