articles | 21 December 2021

Cyprus investment fund assets rise 48.7%

Τhe Investment Funds sector in Cyprus was significantly strengthened in 2021, with managed assets increasing 48.7%, even though the consequences of the pandemic and uncertainty continued.

According to the Cyprus Investment Funds Association (CIFA), the sector is one of the most promising sectors of the economy and fastest-growing.

Assets under Management (AuM) of Cypriot investment funds was €11.6 billion in Q3 2021, proving that Cyprus continues to be one of the fastest-growing destinations for investment firms and their managers.

On an annual basis, AuM increased by 48.7%.

“The country’s recognisability is now clear from the very investment organisations that choose Cyprus as their base.

“In recent years, dozens of fund managers, from various geographical areas, have chosen Cyprus recognising the remarkable advantages it offers as a destination,” said CIFA

“According to the Cyprus Securities and Exchange Commission (CySEC), the total number of licensed Management Companies and Undertakings of Collective Investments was 298 in Q3, which implies an annual increase of 9.1%.”

CIFA believes the sector’s upward but sustainable growth will continue in 2022.

“Continuous upgrades and modernisation of the legislative and tax framework that governs collective Investments mean Cyprus has nothing to envy from other European destinations.

“On the contrary, the cost of establishing and operating these organisations is much lower in Cyprus than other competing EU destinations.

“According to data from the European Fund and Asset Management Association (EFAMA), 47% of the Cypriot Investment Funds net assets were related to cross-border investments in 2020.

“This ranks Cyprus fourth in Europe, with Ireland, Luxembourg, and Malta ahead.”

Approximately 140 collective investment organisations invest in Cyprus in part or fully, reaching €2.3 billion in Q3 (19.5% of total AuM).

“What the sector is eager to see materialising in the new year is the enactment of the legislation that will govern supervision and regulation of the fund administration services profession.

“This development will complete the legal framework of the sector, providing an additional level of security to both investors and the managers themselves.

“The Cypriot Investment Funds’ assets have approached €12 billion, under adverse conditions, and this makes us very confident that with correct and stable steps, we will achieve the medium-term goal we have set: to raise the assets of the Funds in Cyprus to €25 billion.”

Source: Financial Mirror

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