Investment Strategy

In accordance with the investment policy enacted by the Executive, the Angola Sovereign Fund invests more than one third of its investment portfolio in securities such as treasury bonds, high-quality bonds, listed securities, derivatives, financial hedging strategies and currencies in order to preserve capital.

The remaining two-thirds of the investment portfolio are allocated to private equity activities in emerging and border markets to generate high long-term returns. The FSDEA's investment portfolio is currently broadly diversified in terms of asset classes, industries and geographical areas. However, private equity activity in infrastructure, agriculture, forestry, mining and health in sub-Saharan Africa is emphasised in order to support the socio-economic development of the region.

Global Investment Portfolio

29%

Alternative investments

Variable income

Fixed income

Availability

FSDEA Net Investment Portfolio

Variable income
Fixed income
Hedge funds
Investments in global funds
Availability

Regional Distribution

North America
Europa
Asia
Multiple Continents
Oceania
South America
Africa

Sectoral Distribution

Financial
Governmental
Funds
Shares
Information Technology
Industrial
Consumer discretionay goods
Other sectors
 Health care
Basic consumer products

Alternative Investment Portfolio

Infrastructure Industry

The FSDEA has also invested USD 1.1 billion in an Infrastructure Capital Venture Fund based on the African continent that focuses on capital investments in the energy, transport and industry sectors of both Angola and Sub-Saharan Africa.

FACT SHEET

Tourism & Hospitality

The FSDEA has invested in the sub-Saharan hospitality sector by establishing a Venture Capital Fund for the Hotel Industry in Africa worth USD 500 million. The hospitality sector has substantial potential for employment and wealth generation in Angola and also stimulates the local supply chain, which has a positive impact on the economic growth of local economies in the region.

Fact Sheet

Additional Investment Funds

The FSDEA has announced the creation of five additional investment funds dedicated to high-yield industries and promoting socio-economic development in both Angola and Sub-Saharan Africa. With an initial investment volume totalling USD 1.4 billion over the next three to five years, these vehicles will perform venture capital investments in the mining, timber, agriculture and health industries and will provide structured capital through a mezzanine fund.

Agricultural Industry

Agriculture and agribusiness are key industries on the continent as they employ the largest share of the active labour force and account for almost half of GDP. However, production in the sub-Saharan region is impeded by technical inefficiencies within this sector. Revenue from agriculture on the continent could be increased by investing in more modern agricultural methods. The FSDEA's Agricultural Venture Capital Fund has already allocated USD 250 million to agricultural activities in order to capitalise on this industry, which is growing rapidly. This investment also contributes to supporting social objectives such as employment in rural areas and food security.

FACT SHEET

Forestry Industry

The FSDEA's Forestry Venture Capital Fund will invest USD 250 million in timber harvesting over the next five years. Investment in forestry-related resources is vital to encourage rural development and bring stability and employment to impoverished communities. Forestry projects are also a solid basis for transforming marginal communities into prosperous ones within rural areas.

FACT SHEET

Health Industry

Investment in the health industry is essential to enable the continent to grow sustainably. This is why the Health Industry Venture Capital Fund will invest USD 400 million in this sector over the next three years. The fund will focus on countries with the greatest potential as regards returns and government support for health such as Angola, Cameroon, Ghana, Kenya, Mozambique, Nigeria and South Africa.

FACT SHEET

Mining Industry

As Africa's vast mineral deposits have significant potential for mining companies, the Mining Venture Capital Fund will invest USD 250 million in this industry over the next five years. Focusing on sub-Saharan Africa and especially Angola, which itself has one of the region's richest subsoils, the Fund will consider investment opportunities in the various mining phases, from exploration to modernisation and expansion.

FACT SHEET

Structured Capital Applications

The FSDEA's Venture Capital Fund for Structural Capital Applications will support entrepreneurship where traditional debt financing is not applicable. Over the next five years, USD 250 million will be allocated to this activity. Structured capital applications aim to meet the needs of sectors that are predominantly driven by entrepreneurship, which is a critical component in helping nations to become more prosperous.

FACT SHEET

Commercial Company

A commercial company has also recently been established to support national micro-entrepreneurs. This investment aims to provide management guidance on a range of areas from business strategy to business success. The initiative is intended for national entrepreneurs working in the informal sector, where there is usually no access to advice and private investment. This commitment represents the country's first social integration initiative in the form of a sustainable commercial enterprise.

AGRICULTURE

Education

Forestry

QUARTERLY UPDATES

Investment Reports

The FSDEA is committed to a policy based on good governance and transparency, which is why it issues quarterly reports that provide all stakeholders with an up-to-date overview of the Fund's activities and investments, including returns and geographic and sectoral allocation.

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Risk Management

Risk assessment and management are a vital part of the Angola Sovereign Fund's investment strategy, which is used to guide the Fund's actions by applying good international practices to the management of all investment activities. Liability processes for risk management, compliance and auditing are developed independently to ensure intelligent risk management.

In this context, the FSDEA has set up measures, committees and procedures to monitor and manage potential risk issues.

Executive roles include:
Supervisory Board

Risk Management Committee

Chief Risk Officer

Chief Compliance Officer

External Asset Managers

Investment Strategy