| The Panama Canal is a renowned feat of engineering — but by the early 2000s its century-old infrastructure was creaky, and it was struggling to meet demand. In 2006, the Panamanian government started a project to renovate the canal and double capacity. Anticipating a big increase in revenue, Panama in 2012 created a new sovereign wealth fund, the Fondo de Ahorro de Panam'a (FAP) , to collect and manage future proceeds from the widened waterway.
Abdiel Santiago, technical secretary of the FAP, is responsible for day-to-day management of the fund. FAP inherited a $1.3 billion portfolio of cash and government bonds from an earlier investment vehicle, and Santiago is implementing a more ambitious strategy that will add stocks and corporate bonds to the fund’s portfolio. He spoke to the Sovereign Wealth Center’s David Evans about how FAP is sifting pricey markets for opportunities amid record low yields. The transcript is edited for grammar, space and context...............................................Full Article: Source |