Press Release

The Fondo de Ahorro de Panama Announces its Audited Consolidated Annual Financial Results for 2020 and Key Management Initiatives.

Panama | March 31, 2021

The Fondo de Ahorro de Panama, Panama’s Sovereign Wealth Fund, (hereinafter, “FAP” or “Fund”) announces its audited consolidated annual financial results for 2020 (in Spanish) and key management initiatives.*

Financial Highlights

The Fund closed 2020, with a 7.23% gross return (2019: 9.57%).  In terms of net gains, the Fund generated B/. 92.6 million in 2020 (2019: B/. 118.2 million).  As a result, the Fund ended 2020 with net assets of B/. 1,380.7 million, a decrease of 1% relative to 2019, mainly due to the transfer of B/. 105 million to the National Treasury to support the National Government in response to the COVID-19 pandemic.  (Access our Annual Report 2020 in Spanish here.)

 These results are mainly associated with our Strategic Asset Allocation, which defines our Strategic Portfolio (under the Fund’s Annual Investment Plan), and the performance of the selected benchmarks.  The Fund’s Strategic Portfolio – which has a long-term profile – slightly outperformed in 2020, a composite benchmark of the assigned equity and fixed income benchmarks, which were driven by the monetary and fiscal stimulus measures in the U.S. in response to the economic effects of the COVID-19 pandemic.  We note that 100% of our fixed income assets in our Strategic Portfolio are rated “investment grade.”

 The investment management of the Fund is prudent and long-term.

Key Management Initiatives

Below are our key management initiatives:

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

  • Mr. Mario Amaya joins as a member of the Board of Directors.

  • The Board of Directors approved its Annual Investment Plan for the 2020/2021 period.

  • The FAP transferred B/. 105 million to the National Treasury in response to the health/economic crisis caused by COVID-19 pandemic.

  • The FAP became a signatory to the United Nations-supported Principles for Responsible Investments.

  • The Fund began the implementation of its private equity portfolio.

 

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.

For additional information visit www.fondoahorropanama.com

* The financial figures presented are expressed in Balboas, the currency unit of the Republic of Panama (B /.), Which is at par and freely exchangeable with the United States dollar (USD or US Dollar), considered the functional currency of Fondo de Ahorro de Panamá.

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