Angola's SWF launches infrastructure fund

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Angola's SWF launches infrastructure fund

Angola's sovereign wealth fund (SWF) has launched an US$1.6 billion African infrastructure and hotel fund to diversify its portfolio.

The new fund aims to help diversify the SWF's portfolio due to the fact that the decrease in crude prices is threatening the Angola's oil-dependent economy.

The SWF is currently allocating about US$1.1 billion to a fund that is expected to invest in energy, transport and other infrastructure projects in the sub-Saharan region. A further US$500 million are set to be invested in the acquisition of greenfield developments. The fund will select international firms to manage the future acquired assets.

Jose Filomeno Dos Santos, chairman of the SWF, commented:

"We want to really diversify the portfolio, especially because of what is happening with the oil price. Typically we will be looking at public private partnerships, concessions by states and also industrial investments, such as factories or assembly plants and so forth (with the infrastructure fund)."

"We don't think this oil reduction is a reason to panic. We see it more as a reinforcement of the need to invest in sectors others than oil and a reinforcement of the strategy of the fund."

The US$5 billion SWF was set up in 2012, it began to deploy its cash this year and has gradually diversified into listed equities, primarily in the US and Europe. About 62% of its assets are in fixed income, with 12% in variable income (including equities).

Quantum Global, a Swiss-based investment management group, is the fund's sole adviser. 

Angola, which has been one of the continent's fastest growing economies, is the second-largest oil producer behind Nigeria.

Oil currently accounts for about 95% of the southern African nation's export revenues and 75% of government revenues.

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