Press Release

The Fondo de Ahorro de Panamá Releases its Audited Financial Statements for the First Quarter 2017

Panama | August 25, 2017

The Fondo de Ahorro de Panama (the “FAP” or the “Fund”) has released its audited financial statements for the first quarter of 2017 (“1Q2017”).  The following are highlights of the quarter:

  • The cumulative gross return for the 1Q2017 was 1.54%. 
  • Net income, for the same period, was B/. 18.9 million (B/. 1 = 1 USD) *.
  • The Fund generated B/. 11.0 million in interests and dividends during the 1Q2017.
  • The Fund gains full membership into the International Forum on Sovereign Wealth Funds ("IFSWF"), positioning the Fund among other global peers. 

Financial Results

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Income for the Period

Net income results for 1Q2017 came in at B/. 18.9 million, mainly from fixed income and equity securities, and reflecting the Fund’s conservative risk/reward positioning strategy.  The returns in the Fund’s managed portfolios improved due to: 1) the incipient global economic recovery and improvement in companies’ earnings; 2) positive expectations of macroeconomic indicators, and the continued expectations that the Federal Reserve would continue its path to raise rates; and 3) improvement of emerging market fixed income performance, due generally to more stable commodities prices.

The Fund generated approximately B/. 11.0 million in interest and dividends, exceeding that of the same period in 2016, by B/. 4.9 million.  

Assets

At the end of the 1Q2017, total assets were B/. 1,544.0 million.  Net assets closed the quarter at B/. 1,283.7 million, compared to the B/. 1,283.9 for the same period in 2016

SUMMARY OF THE QUARTER

During the 1Q2017, after launching a bidding process, the Fund selected the global custody services of The Northern Trust Co.  The Fund also submitted the Board of Director’s 2016 Annual Report and Audited Annual Financial Statements to the Ministry of Economy and Finance, in accordance with FAP’s legal framework. Additionally, the Board of Directors approved several changes to its Investment Policies and Standards, in connection to the Fund’s external asset manager mandates and implementation of its Annual Investment Plan.

We proudly note that during this quarter, the Fund obtain full membership in the IFSWF, positioning the Fund among the most important global Sovereign Wealth Funds, for its high level of transparency, robust corporate governance and sound investment management objectives. 

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 (B/.); The Republic of Panama does not issue its own currency, and instead, the B/. is used as legal tender, and is considered the Fund´s functional currency.  The financial reports provided by our global custodian are in B/. 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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