Growth of Cypriot Investment Funds significantly exceeded the European average for another year
- Annual rise of 61.5% for Alternative Investment Funds, according to leading European publication findings
- A. Yiasemides: We are consistent with our efforts to further develop a very promising sector
The data reflected in "Fact Book 2022 – Trends in European Investment Funds" of the European Funds and Asset Management Association (EFAMA), the leading publication for Investment Funds in Europe, demonstrate the dynamics and strengths of the specific sector in Cyprus.
The Cyprus Investment Funds Association (CIFA) considers that even though in recent years the international markets have been characterized by uncertainty and volatility, the sector in Cyprus has shown resilience and continued to grow at all levels: from improving the legislative and regulatory framework to attracting new Collective Investment organizations from different countries.
Particular interest is observed in Alternative Investment Funds (AIFs), whose net assets increased by 61.5% in 2021 and reached €7.2 billion. The total net assets of AIFs in Europe amount to €8 trillion and during 2021 they recorded an increase of 12%.
At the same time, the publication once again lists Cyprus as a centre for cross-border investment funds, in line with traditional financial services centres, such as Ireland and Luxembourg, as more than 45% of the funds based in the country were held abroad.
"This trend reveals that foreign Investment Funds entrust Cyprus and consider it a reliable destination for the management of their funds", comments the president of CIFA, Andreas Yiasemides. "The effort for further recognition of Cyprus by the international markets continues and we are optimistic that the course of gradual and sustainable development will be fortified, contributing to the diversification of the professional services provision model and the Cypriot economy at large".
The resilience and attractiveness of the sector is also confirmed by the recent data for the first quarter of 2022, published by the Cyprus Securities and Exchange Commission, according to which, the number of licensed companies rose to 322, compared to 310 three months earlier. Yet more positive is the fact that the increase concerns mostly companies with activities since they increased by 11 within a quarter and reached 235. The companies' assets under management were affected by international developments and showed a slight decrease of 3.9%, amounting to 11.1 billion euros.
"Although in recent years the Investment Funds sector has developed at a very fast pace, we remain grounded and focused on the goals we have set from the beginning: To make Cyprus one of the leading centres for Investment Funds in Europe and internationally. To achieve this, earnestness, vigilance, and targeted actions are needed. This is how we started, and this is how we intend to continue our endeavour, as the benefits of the growth and development of the Investment Funds sector are many. Our efforts are for new investments in the Cypriot economy, increased revenues to state coffers, new, well-paid jobs during a time when the professional services sector is under pressure", comments A. Yiasemides.