* Long-ruling president has weak record on transparency
* Fund to channel oil wealth into diversification effort
* Investments include fixed income, frontier mkt assets
LISBON, June 21 Angola on Friday appointed one
of President Jose Eduardo dos Santos' sons to chair its $5
billion sovereign wealth fund, a move likely to raise further
questions about transparency and nepotism in Africa's
second-biggest oil producer.
Angola launched the fund in October to invest in domestic
and overseas assets by funnelling oil wealth into
infrastructure, hotels and other projects to diversify its
economy outside the energy industry.
Analysts welcomed the move at the time, saying it could help
Angola protect itself from oil price shocks by cutting the
state's dependence on crude revenues, which represent around 45
percent of output.
However, the appointment of Jose Filomeno dos Santos to the
fund's board drew criticism from opposition parties and civil
society activists. His promotion to lead the fund is likely to
be met with a similar response.
President Dos Santos, who has been in power for 33 years and
last year secured a new five-year term, has long been accused of
avoiding public scrutiny, doing too little to fight corruption
and mismanaging revenues.
The fund also said the government had approved its
much-delayed investment policy, which was initially due to be
announced by the end of March.
"The approved policy, along with our commitment to
accountability and transparency, will ensure that we make the
best and most considered investments that support the country's
long-term economic future," Jose Filomeno dos Santos said in a
The fund said half of its investments would be in cash,
developed market equities and bonds issued by sovereign
agencies, supranational institutions, investment grade companies
and financial institutions.
The remainder will be in high-yield emerging market assets.
Its first focus will be on the hotel sector in Africa, while it
will also commit 7.5 percent of the funds to social projects to
improve access to education, healthcare and energy, it added.
(Reporting by Shrikesh Laxmidas; Editing by Angus MacSwan)