Total portfolio investment (PI) assets fell to €22.8bn in 2021, representing a 7% annual decline from €24.5bn a year earlier, reflecting a decrease recorded in equity and investment fund shares , and to a lesser extent in the short term – term debt securities made by residents abroad, the Central Bank of Cyprus said.
Debt securities assets in 2021 amounted to EUR 13,249.7 million, representing 58% of total portfolio assets compared to 52% in 2020, while equity and investment fund shares amounted to EUR 9,562.4 million in assets in 2021, representing 42% of the total asset portfolio compared to 48% in 2020.
In terms of investment destinations linked to PI assets for 2021, Russia had the largest share with 57% of assets, followed by Ireland at 11%, Luxembourg at 10% and the US at 8%, with the remaining 14% elsewhere.
According to the CBC, the main sectors that contributed to the change in assets during the year were “Other Sectors” with negative flows of €1,909.9 million, MFIs with positive flows of €955.4 million, and the Central Bank with negative flows of 737.5 million euros, while the situation mainly reflects changes in the exchange rate of shares.
In addition, total income from debt securities was EUR 298.5 million in 2021, down from EUR 315.9 million in 2020, despite an increase in debt securities holdings. This reflects the fall in interest rates in the global economy, which led to a depreciation of rates and interest received on bonds issued abroad.
According to the CBC, income from equity securities in 2021 was 280.1 million euros, which indicates a significant decrease from 507.6 million euros in 2020 due to falling income from investments in Russian shares.