19.07.2022
The data, reflected in the European Funds and Asset Management Association (EFAMA) Factbook 2022 – Trends in European Investment Funds, demonstrates the dynamics and strengths of the specific sector in Cyprus, said the Cyprus Investment Funds Association (CIFA).
In a press release following the release of the report, considered Europe’s leading publication on investment funds, CIFA stated that while international markets have been characterized by uncertainty and volatility in recent years, “the sector in Cyprus has shown resilience and has continued to grow at all levels. : from improving the legislative and regulatory framework to attracting new collective investment organizations from different countries.
The association stressed that the net assets of alternative investment funds (AIF) increased by 61.5% in 2021 and reached 7.2 billion euros. AIF’s total net assets in Europe are €8 trillion and have recorded a 12% increase in 2021.
At the same time, the publication again names Cyprus as a center for cross-border investment funds, along with traditional centers of financial services such as Ireland and Luxembourg, since more than 45% of the funds based in the country were abroad.
“This trend shows that foreign investment funds trust Cyprus and consider it a reliable place to manage their funds,” comments CIFA President Andreas Yasemides. “Efforts to further the recognition of Cyprus in international markets are ongoing and we are optimistic that the course of gradual and sustainable development will be strengthened, contributing to the diversification of the professional service model and the Cypriot economy as a whole.”
The resilience and attractiveness of the sector is also confirmed by the latest data for the first quarter of 2022 published by the Cyprus Securities and Exchange Commission, according to which the number of licensed companies increased to 322, compared to 310 three months earlier. Even more positive is the fact that the increase is mainly related to companies with activities, as they increased by 11 in the quarter to reach 235. Assets under management were affected by international events and showed a slight decrease of 3.9%, amounting to 11. 1 billion euros.
“While the investment fund sector has developed at a very fast pace in recent years, we remain focused on the goals we set from the very beginning: to make Cyprus one of the leading investment fund centers in Europe and internationally,” Yasemides said. commented, adding that seriousness, vigilance and purposeful action are needed to achieve this.”
“This is how we started and this is how we intend to continue our efforts as the benefits of growth and development in the investment fund sector are numerous. Our efforts are focused on new investment in the Cypriot economy, increased government revenue, new, well-paid jobs at a time when the professional services sector is under pressure,” added the President of CIFA.
