On Thursday, 12th October 2017, Angola’s sovereign wealth fund, Fundo Soberano de Angola (FSDEA), announced its second-quarter investment updates for 2017 that covers the period from 1st of April to 30th of June 2017.
“As the FSDEA celebrates our fifth anniversary, I am extremely proud of what we have achieved in such a short time period. We are increasing the value of the private equity portfolio. The capital gains we continue to make are a testament to the unquestionable progress in the implementation of the FSDEA’s investment policy defined by the Angolan Government. The results for the second quarter underscore our ability to consistently balance growth and profitability,” José Filomeno dos Santos, Chairman of the Board of Directors, FSDEA said while commenting on the Fund’s performance.
At the end of this period, the total assets of the Fund were valued at USD 5.05 billion and the highlights were as follows:
- The FSDEA’s total assets increased to USD 5.05 billion from US$4.99 billion in 2016;
- 48 percent of the total portfolio was dedicated to assets in Sub-Saharan Africa, 28percent in North America, 18 percent in Europe, and 6 percent across the rest of the world;
- The Fund’s securities investment portfolio posted earned US$ 67.27 million;
- Fixed Income net investments were valued at US$ 891 million, representing 18 percent of the total portfolio;
- Net variable income investments were valued at US$ 674 million, representing 14 percent of the total portfolio;
- US$ 459 million of the portfolio’s US$ 2.7 billion allocation to private equity has already been invested in assets in Angola and the wider sub-Saharan African region;
- The main gains of the seven private equity investment funds were recorded in the Agriculture Fund (USD 0.11 billion), the Infrastructure Fund (USD 0.12 billion) and Timber Fund (USD 0.04 billion), which offset the capital depreciation of US$ 0.02 billion of the remaining four funds;
- No additional capital was paid to the FSDEA by the Government
“It is essential that we continue to make prudent investments and support the development of the non-oil sector within Angola, keeping in view the challenging macroeconomic environment domestically and internationally,” dos Santos added further.
What you should know about Fundo Soberano de Angola
- The Fundo Soberano de Angola (FSDEA) is a Sovereign Wealth Fund.
- It is wholly owned by the State of the Republic of Angola.
- The Fund was established in accordance with international governance benchmarks.
- It 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.