Press Release

The Fondo de Ahorro de Panama Announces its Audited Consolidated Annual Financial Results for 2021 and Key Management Initiatives.

Panama | March 31, 2022

The Fondo de Ahorro de Panama, Panama’s Sovereign Wealth Fund, (hereinafter, “FAP” or “Fund”) announces its audited consolidated annual financial results for 2021 (in Spanish) and key management initiatives.*

Financial Highlights

The Fund closed 2021, with a 2.91% gross return (2020: 7.23%). In terms of net gains, the Fund generated B/.41.7 million in 2021 (2020: B/.92.6 million). As a result, the Fund ended 2021, with net assets of B/.1,422.4 million, an increase of 3% relative to 2020, mainly due to the transfer made by the Fund in 2020 of B/.105 million to the National Treasury to support the government in its response to the COVID-19 pandemic.  (Access our Annual Report 2021 in Spanish here.)

These results are associated with our Strategic Asset Allocation, which defines our Strategic Portfolio (under the Fund’s Annual Investment Plan), and the performance of the established benchmarks. The Fund’s Strategic Portfolio – which has a long-term profile – slightly outperformed in 2021, the composite benchmark (composed of equity and fixed income instruments). We note that all of our fixed income instruments in our Strategic Portfolio are rated “investment grade.”

Key Management Initiatives

Below are our key management initiatives:

  • The Board of Directors approves the execution of the Fund’s Annual Investment for the 2021/2022 period.

  • The Board of Directors enhances its corporate governance structure by creating the Investment and Risk Committee.

  • Beginning in 2021, two board members join the Board of Directors:

    -  Mrs. Mayra Kam joins as a new director, and is the second woman director on our Board; and

    -  Mr. José N. Abbo returns as director and now chairs the newly created Investment and Risk Committee.

  • The Fund made its first capital contribution to its private equity program, as it seeks greater efficiency in terms of the risk/return ratio to the Strategic Portfolio.

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

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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