Santiago Principles Self-Assessment

Fondo de Ahorro de Panamá

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Fondo de Ahorro de Panama (“FAP”) legal framework is composed of the following:

  • Law # 38 (5 June 2012)
  • Law # 87 (4 December 2012)
  • Executive Decree No. 1068 (6 September 2012)
  • Investment Guidelines (2012, 2014, 2016)

Effective Panamanian laws are published in the National Gazette for public knowledge.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

FAP governance framework is well-defined in its legal framework.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

FAP's Investment Policy describes objectives, strategy and risk tolerance according to settlor approved guidelines.

However, The Board of Directors reviews FAP’s Investment guidelines annual and propose updates to it, if needed.

The Investment policy can be found on the FAP's website.