Santiago Principles Self-Assessment

Fundo Soberano de Angola

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The Fundo Soberano de Angola (abbreviated hereafter to FSDEA), was officially established in 2011, and initially set under the name of Fundo Petrolífero or FP , through Presidential Decree 48/11 dated 9/3/2011 and is set up as a government agency that operates as a Sovereign Wealth Fund wholly owned by the Republic of Angola.

The FSDEA is hereby created pursuant to the provisions of the Law No. 26/10 of 28 December 2010, approving the State Budget for the year 2011.

The FSDEA is a legal person, equipped with a legal personality, with administrative, financial and property autonomy.

In 2013 the Presidential Decree No. 89/13, of 19 June, has changed the name of Oil Fund or FP for FSDEA and approved its organic status.

During 2013 through the Presidential Decrees Nº 107/108 and 108/13, both of 28 June, the Angolan Government approved the Investment Policy FSDEA and FSDEA of the Management Regulations, respectively.

The FSDEA shall be governed by the provisions of this law, by the Management Regulations and by other applicable legislation.

This law is a sufficient basis for demonstrating the provisions of previous items for all legal effects, including those of registration, with the competent departments obliged to carry out the actions necessary for regularising the situation, with an exemption from any taxes or fees and through a simple notice from the Chairman of the Board of Directors.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

According to Article 5 of the Organic Statute, the following are bodies of the FSDEA:

  • the Board of Directors;
  • the Fiscal Council;
  • the External Auditors.

The Board of Directors consists of three members, with one Chairman and 2 (two) members, who shall exercise their functions for renewable three-year periods, starting on the date of their appointment.

The members of the Board of Directors shall be appointed by Presidential Decree. Members of the Board of Directors, including the Chairman, may not hold any public position that competes with his or her position as a member of the Board of Directors.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

The FSDEA shall be managed efficiently, in a diversified, profitable and prudent manner, in accordance with the general investment policy to the drawn up by the Board of Directors and approved by the President of the Republic (the “Investment Policy”).

The Investment Policy shall include the following strategic elements:

  • the requirement for a definition of the annual investment strategy;
  • the identification of target markets abroad;
  • parameters and procedures for the selection and evaluation of investment opportunities
  • parameters and procedures for analysing the performance of investments;
  • provisions for the coordination of action with Angolan or foreign, national or international financial institutions, which finance each project; and
  • parameters for the selection of financial investment instruments of any excess funds of the FSDEA, which are periodically found to be available.