The Angola Sovereign Fund

The Angola Sovereign Fund, abbreviated as Fund or FSDEA, is a collective public institution with legal personality and administrative, financial and patrimonial autonomy, created under Presidential Decree No. 48/11, of 9 March.

The FSDEA is an institution specialized in strategic investments, whether in financial markets or in alternative assets, which is responsible for setting up a sustainable mechanism that ensures the maximization of long-term returns, the preservation of capital and support for Angola's sustainable socio-economic growth, through investments in strategic sectors, in Angola or abroad, with a view to maximizing capital and the generational transfer of wealth.

Approach

Support the social and economic development of Angola by generating wealth for the Angolan people.

Mission

Focus the FSDEA’s investments on the creation of sustainable financial returns that favour the Angolan people, economy and industrial sector. Manage a diversified portfolio of investments and be an active partner in this initiative.

How
FSDEA

works

1

Allocation of funds from oil revenues

2

Investments to generate long-term returns

3

Generation of wealth for the people of Angola

Timeline

2008

José Eduardo dos Santos, then President of Angola, announced the establishment of a special committee to lay the foundation for a new sovereign wealth fund (Fundo Soberano de Riqueza or FSR) to support Angola’s growth, prosperity and socio-economic development.

2011

The Oil Fund (abbreviated as FP [Fundo Petrolífero] or Fund) is created in accordance with the provisions of the General State Budget Law (approved by law no. 26/10 of 28 December) in order to promote, encourage and support investment in the development of energy and water sector projects and those in other strategic sectors in the Republic of Angola and abroad.

2012

The Fund is set up as a public institution in Angola and receives an initial allocation of USD 5 billion. On 30 January 2012, the President of the Republic, José Eduardo dos Santos, appoints the Oil Fund’s first Board of Directors: Armando Manuel is named Chairman of the Board of Directors; José Filomeno dos Santos and Hugo Miguel Évora Gonçalves become Executive Directors. The Fund is established in accordance with the international governance standards and good practices set out in the Santiago Principles.

2013

Under Presidential Decree No. 89/13, the Oil Fund [Fundo Petrolífero] created under Presidential Decree No. 48/11 of 9 March is renamed the Angola Sovereign Fund [Fundo Soberano de Angola] (abbreviated as FSDEA) and its articles of association are approved. In June 2013, the President of the Republic, José Eduardo dos Santos, appoints the FSDEA’s second Board of Directors: José Filomeno dos Santos becomes Chairman of the Board, while Hugo Miguel Évora Gonçalves and Artur Carlos Andrade Fortunato are named Executive Directors. The Angola Sovereign Fund is incorporated as a closed sovereign investment vehicle for an unlimited term and the Fund’s Management Regulations are approved. The Investment Policy of the Angola Sovereign Fund is approved for the two-year period 2013 - 2014.

2015

The FSDEA is recognised as a transparent sovereign fund by the Sovereign Wealth Fund Institute (SWFI) with a score of 8 out of 10. The regulatory and policy milestones achieved by the FSDEA, together with the SWFI classification and membership of the International Forum of Sovereign Wealth Funds (IFSWF) further strengthen the Fund's commitment to comply with the local and international regulations that govern its operations and investment activities. The FSDEA adopts standards known as International Financial Reporting Standards (IFRS) for the first time.

Santiago Principles

The Angola Sovereign Fund is governed by the Santiago Principles, which are a voluntary set of practices and values developed by the International Working Group of Sovereign Wealth Funds.

The Santiago Principles are intended to promote transparency in relation to institutional frameworks, governance and the functioning of these Funds, leading to a more open and stable investment environment.

1

Help to maintain a stable global financial system and a free flow of capital and investment;

2

Comply with all regulatory and information requirements in the countries where the Fund invests;

3

Invest on the basis of economic and financial risks and return-related considerations;

4

Maintain a sound and transparent governance structure that provides for adequate operational controls, risk management and accountability.