Fund Management Regulation in Angola
Angola’s collective investment scheme (CIS) framework is regulated by the CMC under the Securities Code and specific fund management regulations. Sociedades Gestoras de Organismos de Investimento Colectivo (SGOICs) are the licensed entities authorized to establish and manage investment funds in Angola.
Regulatory Framework
The CMC oversees the entire fund management lifecycle:
- Licensing: SGOICs must obtain a CMC license before establishing or managing any investment fund
- Fund Authorization: Each fund requires individual CMC approval, including review of the fund’s prospectus, investment policy, and management agreement
- Ongoing Supervision: SGOICs are subject to periodic on-site inspections and off-site monitoring by the CMC
Types of Investment Funds
| Fund Type | Description | Key Features |
|---|---|---|
| Open-Ended Funds (Fundos Abertos) | Unit trust structure with daily redemptions | Variable capital, daily NAV calculation |
| Closed-Ended Funds (Fundos Fechados) | Fixed capital with limited redemption windows | Listed or unlisted, fixed maturity date |
| Real Estate Funds (Fundos Imobiliarios) | Invest primarily in Angolan real estate | Closed-ended, ARSEG involvement for insurance assets |
| Money Market Funds | Invest in short-term government securities and deposits | Low risk, high liquidity |
| Bond Funds | Invest primarily in government and corporate bonds | Medium-term horizon |
Licensing Requirements for SGOICs
To obtain a CMC license, an SGOIC must demonstrate:
- Minimum share capital as prescribed by CMC regulations
- Qualified management and compliance personnel with relevant experience
- Adequate IT infrastructure for fund administration and NAV calculation
- Internal control framework including risk management, compliance, and internal audit functions
- AML/CFT compliance program and KYC procedures
Fund Governance
Each investment fund must have:
- A management regulation (Regulamento de Gestao) approved by the CMC
- A custodian bank independent of the SGOIC
- An independent external auditor
- Clear investment limits, including concentration limits and eligible asset classes
- Valuation policies consistent with CMC guidelines
Investor Protections
The CMC mandates several protections for fund investors:
- Segregation of fund assets from the SGOIC’s own assets
- Regular publication of fund NAV and portfolio composition
- Annual audited financial statements for each fund
- Prospectus disclosure of all fees, charges, and risk factors
- Right to redeem at NAV for open-ended funds (subject to any gating provisions)
Market Development
Angola’s fund management industry is at an early stage of development, with a small number of licensed SGOICs primarily managing bond and money market funds. As the equity market deepens with additional BODIVA listings and the regulatory framework matures, the CIS sector is expected to grow, supported by pension fund allocations and increasing retail investor participation.