Approval of the Fondo de Ahorro de Panama’s Annual Investment Plan for 2016 / 2017
Panama | February 4, 2016
The Board of Directors (the “Board”) of the Fondo de Ahorro de Panama’s (the “Fund”) approved its Annual Investment Plan for the 2016/2017 period (the “Plan”); said Plan was approved by way of a Board resolution on January 26, 2016.
In this Plan, the Board defines the Strategic Asset Allocation (“SAA”) and the Strategic Portfolio of the Fund in accordance with the guidelines established in the Law and its regulations, investment guidelines, investment policies, and the Santiago Principles (a set of generally accepted practices for sovereign wealth funds). Strict compliance with the Law and its regulations, proper due diligence and fiduciary responsibility form the cornerstone of this Plan.
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 Fund’s Strategic Portfolio as approved by Board for the 2016/2017 period is as follows:
- Cash and Equivalentes: 5%
- Sovereign Bonds: 40%
- Supranational / Multilateral and Related Bonds: 10%
- Sovereign Bonds indexed to inflation: 4%
- Corporate Bonds: 14%
- Mortgage-backed Securities: 12%
- Equities: 15%
About 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.
For additional information visit www.fondoahorropanama.com