Press Release

The Fondo de Ahorro de Panama Approves its Annual Investment Plan

Panama | February 23, 2024

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 2024/2025 period (the “Plan”), which establishes the Strategic Asset Allocation (the “Allocation”) and defines the Strategic Portfolio of the Fund. 

The expected Allocation (maximum limits) by asset classes of the Fund’s Strategic Portfolio is as follows:

  • Short-Term Investments/Cash: 15%

  • Global Fixed Income: 41%

  • Inflation-linked Bonds: 2%

  • High-Yield Bonds: 7%

  • Global Equities: 20%

  • Alternatives Investments (e.g., private equity, infrastructure, and others): 15%

Relative to the previously approved portfolio (2022/2023), the new Strategic Portfolio reflects a reduction in its short-term investments, and global equities, while experiencing an increase in allocations for alternative investments, high-yield bonds, and global fixed-income.

It is important to note that while the FAP complies with the legal requirements of establishing and communicating annually our Plan and the Allocation, the portfolio is fundamentally designed with a 10-year investment horizon in mind. This long-term approach is structured with strict adherence to economic/financial reasoning and applicable legal regulations, considering key criteria such as: 1) objectives and investment horizon; 2) liquidity needs; 3) capital preservation; 4) diversification; and 5) tolerance regarding the expected risk/return relationship. This comprehensive consideration of factors ensures a balanced approach that aligns our immediate actions with our overall strategic objectives.

In addition, the Board may consider tactical asset allocation or short-to medium-term positioning of the investment portfolio due to changes in movements in various financial markets, always applying economic and financial reasoning under the principles governing the Investment Guidelines for the protection of the Fund’s assets.

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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