The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the First Quarter of 2016
Panama | Aug 10, 2016
The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the first quarter of 2016. The following are highlights of the quarter:
- The quarter yielded net income of USD 23.1 million (1Q2015: USD 14.1 millions), representing a year-to-date return of 1.9% for the period.
- The equity portfolio generated USD 1.1 million in dividends.
- The Fund’s Board of Directors approved the Annual Investment Plan for 2016/2017 and Strategic Asset Allocation.
- The Fund signs an amendment to its technical advisory agreement with the World Bank.
Income for the Period
Results for 1Q2016 came in at a net income of USD 23.1 million, mainly from bond and equity securities. The returns in the Fund’s managed portfolios improved due to: 1) the decrease in the yields in sovereign bonds of major developed countries; and 2) higher valuations in the emerging market portions of the equities portfolio. Abdiel A. Santiago M., Secretary of Fund, commented on the results: “The Fund’s portfolio is diversified, and this has been key for allowing the portfolio, under a period of high volatility and uncertainty, to capture favorable movements in the fixed income and equity markets".
The Fund generated USD 6.1 million in interest and dividends, exceeding results over the same period in 1Q2015. This is mainly due to higher interest rates earned on time deposits as a result of the increase in the target funds rate by the U.S. Federal Reserve and the implementation of our equities portfolio, which generated USD 1.1 million in dividends for 1Q2016.
Total Expenses for the quarter came in at USD 854.8 thousand for 1Q2016 (1Q2015: USD 466.6 thousand) due to transactional costs and management fees in the equity portfolio implemented during 2Q2015, and also due a change in recognition of certain custody and management expenses to an accrual basis.
At the end of the 1Q2016, total assets were USD 1,448.5 million, 0.3 % higher compared to 1Q2015. Net assets closed the quarter at USD 1,248.1 million, -4.0 % compared to the same period a year before, due to the transfer of USD 57.4 million to the National Treasury in 3Q2015 related to returns corresponding to 2014.
SUMMARY OF THE QUARTER
During 1Q2016, the FAP’s Board of Directors approved the Annual Investment Plan 2016/2017, which defines the Strategic Asset Allocation. Additionally, the Fund signed the addendum of the technical advisory agreement with the World Bank for the purposes of enhancing the Fund’s investment management administration.
SUMMARY OF AUDITED FINANCIAL STATEMENTS
About the 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.
Contact: Administration, +507-394-5776/5706, email@example.com
For additional information visit www.fondoahorropanama.com