Press Release

The Fondo de Ahorro de Panama Approves its Annual Investment Plan for 2020/2021

Panama | July 9, 2020

The Board of Directors (the “Board”) of the Fondo de Ahorro de Panama’s (the “Fund”) in its regular board meeting approved its Annual Investment Plan for the 2020/2021 period (the “Plan”), which establishes the Strategic Asset Allocation (the “Allocation”) and defines the Strategic Portfolio of the Fund.

The expected Allocation range by asset classes of the Fund’s Strategic Portfolio is as follows:

• Short-Term Investments: 15 - 20%

• Global Fixed Income: 50 - 60%

• Inflation-linked Bonds (sovereign bonds): 3 - 5%

• Global Equities: 18 - 20%

• Alternatives Investments (private equity): 0 - 5%

Relative to the previously approved portfolio (2018/2019), the current Strategic Portfolio reflects a slight increase in its equities asset class allocation, a reduction in its short-term investments allocation, and incorporates a new allocation to “alternatives investments” (private equity), which is expected to have an allocation of up to 5% of the total portfolio. 

Abdiel A. Santiago, Secretary of the Fund, said that “this Strategic Portfolio is structured with strict adherence to the economic/financial reasoning of the Board and to its applicable legal standards, and incorporates key criteria such as the Fund´s objectives and investment horizon, liquidity needs, capital preservation, returns expectations and expected risk tolerance.”

In accordance with its bylaws, the Board approves the Plan annually.

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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