On Wednesday, 20th December 2017, Angola’s sovereign wealth fund, Fundo Soberano de Angola (FSDEA), announced its third-quarter investment update for 2017. This covers the period from 1st of July to 30th of September 2017. During this period, FSDEA witnessed a profit of $40.5 million, mainly generated by a good performance of investments in fixed and variable income instruments that generated a gross margin of USD 117.5 million.
“FSDEA strong performance and profitability, registered since 2016, continued during the third quarter of 2017. These results came primarily from investments in bonds and securities. These generated a gross margin of USD 117.5 million,” said José Filomeno dos Santos, Chairman of the Board of Directors, FSDEA while commenting on the Fund’s performance.
At the end of this period, the total assets of the fund were valued at $5.03 billion and the highlights were as follows:
- The FSDEA’s total assets at the end of the third quarter valued at USD 5.03 billion;
- 48 percent of the total portfolio was dedicated to assets in Sub-Saharan Africa, 31 percent in North America, 15 percent in Europe, and 6 percent across the rest of the world;
- Fixed income net investments were valued at $739 million, representing 15 percent of the total portfolio;
- Net variable income investments were valued at $894 million, representing 18 percent of the total portfolio;
- Private equity funds invested $489.9 million in Angola and sub-Saharan Africa, which have currently reported value of $884.5 million;
- Bonds and securities earned gains of $117.5 million, before fees and expenses;
- No additional endowment has been received from the Government to the FSDEA during the period.
“Within the scope of the FSDEA mandate, we envisage the realization of more investments in several sectors, which will create more and more value for the portfolio, thereby creating income generation opportunities for national citizens and those of neighbouring countries. The capital gains realized in 2016 and 2017 demonstrate the Fund’s prudent investment strategy in private equity. We, therefore, expect a continuous increase in the value of these investments throughout the year,” said José Filomeno dos Santos.
What you should know about Fundo Soberano de Angola
- The Fundo Soberano de Angola (FSDEA) is a Sovereign Wealth Fund.
- FSDEA is wholly owned by the State of the Republic of Angola.
- The Fund was established in accordance with international governance benchmarks.
- FSDEA helps to develop an investment portfolio across a number of industries and asset classes, in accordance with the investment policy and guidelines set by the State.
- By pursuing investments that generate long-term and socially enhancing financial returns, the FSDEA has an important role in promoting Angola’s socioeconomic prosperity and generating wealth for Angolans.