Investment Strategy

The Fundo Soberano de Angola’s investment strategy is founded on its commitment to Angola’s social and economic development. While the FSDEA considers investing across Africa and globally, it has a strong focus on investments in the domestic market, building Angola’s infrastructure and creating opportunities for the citizens of Angola. By taking a long-term view with its investments, the FSDEA aims to achieve sustainable and stable returns as well as to play a critical role in the development of Angola’s human capital that is required to build the economic foundations, which are an essential prerequisite to improve the living standards of all Angolans.

The Fund’s asset allocation envisions a portfolio that pursues the optimization of the expected returns versus the expected risk, over a long-term investment horizon. As stated in the Fund’s investment policy, the FSDEA will allocate approximately half of its initial endowment to alternative investments, predominantly in the agriculture, mining, infrastructure and real estate sectors in Angola and across other African markets to nurture sustainable domestic and regional growth. The remainder of the portfolio will be allocated to high quality cash and fixed income instruments, issued by sovereign agencies, global and emerging equities as well as further alternative investments around the globe.

The Fund is initially focused on investing in the sub-Saharan hospitality sector, through the establishment of a dedicated Hotel Fund. The rationale behind creating this fund is that the sector holds substantial potential for job and wealth creation and stimulates a local supply chain that positively impacts the overall economic growth of the region’s local economies. Additionally, the FSDEA will seek investments in infrastructure projects across Sub-Saharan Africa, through a Fund vehicle, to support Sub-Saharan Africa’s economic development and benefit from the strong growth of the region, as an investor.

The Fund has also developed clear and strong long-term positioning that stretches beyond a short-term economic profit maximisation strategy, by allocating up to 7.5% of its endowment to social development and socially responsible projects in the areas of education, income generation and off-the-grid access to clean water, healthcare and energy. Through this approach the Fund aims to realize potential that would be overlooked, otherwise, due to a lack of investment. For instance, by allocating a portion of its funds to increase of human capital the Fund will expand Angola’s capacity to develop faster and secure additional investments.

Risk Management

The assessment and management of risk is essential to the Fundo Soberano de Angola’s investment strategy. In the development of risk management protocols, the Fundo Soberano de Angola has applied international best practices to govern all investment activities.

The Fundo Soberano de Angola has established measures, committees and procedures that support the monitoring and managing of potential risk issues. Executive roles include:

  • Fiscal Council
  • Risk Management Committee
  • Chief Risk Officer
  • Chief Compliance Officer
  • External Asset Managers