Press Release

The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the Second Quarter 2019

Panama | January 7, 2020

The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the second quarter of 2019 (“2Q2019”). The following are highlights of the quarter:

  • The cumulative gross return for the year to 2Q2019 was 6.48%.

  • Net income for the same period was B/. 80.4 million.*

  • During the 2Q2019, the Fund generated B/. 15.4 million in interests and dividends.

  • Net assets closed the quarter at B/. 1,355.3 million.

FINANCIAL RESULTS

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Results for the Period

The accumulated results for the first six (6) months of 2019, show a net income of B /. 80.4 million. Positive U.S. stock market performance, a cautious position of the US Federal Reserve in its monetary policy (leaving the door open for benchmark interest rate cuts) over concerns about a potential global economic slowdown linked to trade tensions between the U.S. and China were among the reasons for 2Q2019 portfolio performance.

During 2Q2019, the Fund generated interest and dividends in the order of approximately B /. 15.4 million, compared to B/. 13.6 million generated in the same period of 2018, due to a relatively higher concentration in fixed income instruments in the Global Portfolio of the Fund in 2019.  

Assets

At the end of the 2Q2019, the Fund´s total assets were B/. 1,459.1 million. Net assets closed the quarter at B/. 1,355.3 million, compared to the B/. 1,276.8 at 2Q2018 end.

SUMMARY OF THE QUARTER

  • The Fund’s Supervisory Commission issued its 2018 Opinion Report regarding the administration and corporate governance of the Fund.

  • The Board of Directors approved the extension of the external audit service contract for the 2019 – 2020 period with auditors KPMG.

SUMMARY OF AUDITED FINANCIAL STATEMENTS

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*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 Fun´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:

  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.

Contact: Administration, +507-394-5776/5706, administrador@fondoahorropanama.com

For additional information visit www.fondoahorropanama.com

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