Luanda - The Angolan Sovereign Fund (FSDEA) reached a historic milestone by achieving net results of US$199.35 million in 2023, recording a growth of 201% compared to the previous year.
This result also represents the fund's best performance ever, with a return of 10%, compared to 2022, a period in which the institution faced significant losses of USD 196.65 million, according to a press release to which ANGOP had access on Sunday.
According to this document, the solid result of 2023 reflects the effectiveness of the strategies implemented by the FSDEA, standing out as a pillar of growth and economic stability for Angola.
The fund justifies that this result was influenced, essentially, by the good performance of the net investment portfolio, which recorded, during the year, gains in the amount of USD 168.62 million, as well as by the good performance of the alternative portfolio, which achieved net gains in the amount of USD 39.28 million.
On the other hand, unlike the failure observed in 2022, the year 2023 was marked by an important recovery in the performance of equity and bond markets.
The FSDEA also adds that the positive performance of the market reflects the surprising global economic resilience, the strong performance of the main companies listed on international stock exchanges and the enthusiasm around Artificial Intelligence (AI), in a very challenging context, due to the restrictive monetary policies unleashed by the main central banks to contain the strong inflationary pressures in the main economies and the growing geopolitical tensions.
In 2024, the fund obtained results valued at USD 79.24 million, of which 52.45 million in the first quarter and 26.79 million in the second quarter.
Despite the denoted slowdown in the result of the second quarter, due to several factors, such as the slowdown in GDP growth in the United States, which fell to 1.8% in the second quarter, the persistent inflation rate above 4% and the increase in the unemployment rate.
The FSDEA concludes in its report that the solid performance achieved throughout 2023 and in the first half of 2024 highlights the effectiveness of its growth strategies, the resilience of its business model and the continued commitment to creating sustainable value for the Angolan people.
However, Q3 results are expected to return to levels reached during Q1 2024, with continued stable overall economic growth and continued moderation in key economies for the rest of the year.
Commitment to investment in the alternative class for Angola
In terms of the investment policy of the Angolan Sovereign Fund (FSDEA), the positive results obtained in 2023 and in the first and second quarters of 2024 should be reinvested.
This reinvestment will be divided between the same asset classes that have already demonstrated success and into the alternative investment class, with a focus on fertilisers, pharmaceuticals, animal and plant protein production, as well as forestry and exports, in line with the approved alternative investment strategy.
This strategy aims, among other aspects, to promote the diversification of the national economy, stimulate the increase in productivity and competitiveness of the national economy, reduce imports, increase exports and promote investment opportunities in Angola, through the establishment of strategic partnerships and the attraction and fixation of foreign capital.
The Sovereign Fund of Angola is a collective public institution created under Presidential Decree No. 48/11, of March 9.
The institution specializes in strategic investments, through a sustainable mechanism that ensures the maximization of long-term returns, the preservation of capital and the support of the country's sustainable socio-economic growth, with a view to maximizing capital and the generational transfer of wealth. QCB/DOJ
