Asset Allocation Tool
Visualize and optimize your Angola investment portfolio across asset classes.
This calculator is being enhanced with full interactivity. Current data is provided for reference.
With the Banco Nacional de Angola (BNA) base rate at 17.5% following the January 2026 cut from 18.5%, the spread between Angolan asset classes has widened considerably, creating distinct risk-return profiles that demand structured allocation. For institutional and retail investors deploying capital across Angola’s approximately $115 billion GDP economy, disciplined portfolio construction is no longer optional – it is the primary determinant of real wealth preservation in a 15.7% inflation environment (INE, December 2025).
What This Tool Does
The Asset Allocation Optimizer enables you to model portfolio weightings across the principal Angolan asset classes: Bilhetes do Tesouro (treasury bills), Obrigacoes do Tesouro (treasury bonds), USD-indexed sovereign bonds (OT-NR and OTRV series), BODIVA-listed equities, and bank term deposits (depositos a prazo). By adjusting the percentage allocated to each instrument, the tool calculates a blended expected return, portfolio volatility estimate, and projected real return after accounting for inflation and the applicable Imposto sobre a Aplicacao de Capitais (IAC) withholding tax.
How to Use It
- Set your total investment amount in Kwanza (AOA). For example, Kz 50,000,000 (approximately $54,700 at the current USD/AOA rate of ~914.60).
- Adjust the allocation sliders for each asset class. The tool enforces a 100% total constraint.
- Review the output dashboard, which displays blended nominal yield, estimated real return, and a risk classification from Conservative to Aggressive.
Worked Example: Balanced Portfolio at Current Rates
Consider an investor allocating Kz 50,000,000 across five asset classes:
| Asset Class | Allocation | Yield/Return | Amount (Kz) |
|---|---|---|---|
| Treasury Bills (BT, 91-day) | 25% | 14.8% | 12,500,000 |
| Treasury Bonds (OT, 3-year) | 25% | 16.2% | 12,500,000 |
| USD-Indexed Bonds (OT-NR) | 20% | 8.5% + FX | 10,000,000 |
| BODIVA Equities | 15% | Variable | 7,500,000 |
| Bank Term Deposit | 15% | 12.0% | 7,500,000 |
Blended nominal yield: approximately 13.5% (weighted average, excluding FX component on USD-indexed bonds). After applying the 10% IAC withholding tax on interest income and adjusting for 15.7% inflation, the real after-tax return on the Kwanza-denominated portion is negative. However, the 20% allocation to USD-indexed instruments provides a natural hedge against further Kwanza depreciation, potentially delivering positive real returns if the AOA weakens beyond the forward curve.
Why Asset Allocation Matters in Angola
Angola’s capital markets present a concentration challenge. BODIVA (Bolsa de Divida e Valores de Angola) lists only a handful of equities, and the sovereign bond market dominates fixed-income supply. Without deliberate diversification across maturities, currencies, and instrument types, portfolios become overexposed to single-factor risks – particularly interest rate and inflation risk.
The January 2026 rate cut signals the beginning of an easing cycle. Investors who repositioned toward longer-duration bonds before the cut captured meaningful capital gains, while those concentrated in short-dated BTs saw reinvestment yields compress. This tool helps model those scenarios before committing capital.
For deeper analysis, pair this optimizer with the Bond Calculator to price individual OT series, the FX Converter to stress-test currency assumptions, the Real Return Calculator to verify inflation-adjusted performance, and the Risk Profiler to calibrate allocations to your specific risk tolerance. The Investment Simulator can then project forward returns across multiple allocation scenarios over time.