Press Release

The Fondo de Ahorro de Panama Announces its Audited Consolidated Annual Financial Results for 2022 and Key Management Initiatives.

Panama | March 31, 2023

The Fondo de Ahorro de Panama, Panama’s Sovereign Wealth Fund, (hereinafter, “FAP” or “Fund”) announces its audited consolidated annual financial results for 2022 (in Spanish) and key management initiatives.*

Financial Highlights

The Fund closed 2022, with a -8.64% gross return (2021: 2.91%); this represents a net loss of B/. 129.1 million in 2022 (2021: B/.41.7 million in net income). As a result, the Fund ended 2022, with net assets of B/.1,293.3 million. (Access our Annual Report 2022 in Spanish here.)

These results are associated with our Strategic Asset Allocation, which defines our strategic portfolio (under the Fund’s Annual Investment Plan), and the performance of the established benchmarks. The Fund’s strategic portfolio – which has a long-term profile – slightly outperformed in 2022, the composite benchmark by 79 basis points (or 0.79%). We note that all our fixed income instruments in our strategic portfolio are currently rated “investment grade.”

Key Management Initiatives

Below are our key management initiatives:

  • The Board of Directors approves the implementation of the Fund’s Annual Investment for the 2022/2023 period.

  • The FAP subscribed to new private equity funds, enhancing its alternative Investment program, and seeking greater efficiency in terms of its risk/return profile and diversification of its strategic portfolio.

  • The Ministry of Economy and Finance approved our request to modify the Fund’s investment guidelines, furthering our ability to diversify and add long-term value to the Fund.

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.

For additional information visit www.fondoahorropanama.com

* The financial figures presented are expressed in Balboas, the currency unit of the Republic of Panama (B /.), Which is at par and freely exchangeable with the United States dollar (USD or US Dollar), considered the functional currency of Fondo de Ahorro de Panamá.

###