Cyprus becoming a hub for Collective Investments

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Cyprus’ Investment Funds sector is on an upward trajectory and has developed rapidly, with over €11 billion under management.

Total Assets Under Management have risen from €6.3 billion in 2018 to €11.1 billion in the first quarter of 2022, according to Cyprus Securities and Exchange Commission (CySEC) data.

Officials believe Cyprus has all the guarantees to become a regional hub for Investment Funds that wish to take advantage of the investment opportunities in Europe and the Middle East.

Furthermore, Funds’ investments in the Cypriot economy, to date, have exceeded €2.5 billion and are spread across various sectors, such as Shipping, Renewable Energy, Education, Technology, and Real Estate.

The latest figures from the European Fund and Asset Management Association (EFAMA) demonstrate the impact of these challenges on the investment fund sector internationally, as in the second quarter, a global asset decline of 5.5% was recorded.

Challenges in the sector were created by the pandemic and the wider effects of the war in Ukraine, inflation, and market uncertainty.

The Cyprus Investment Funds Association (CIFA) presented the latest developments of the Investment Funds on Wednesday.

The President of CIFA, Andreas Yiasemides, stated: “As CIFA we believe that, despite the uncertainty and occurrent instability of the recent years, the sector in Cyprus presented good reflexes, showed resilience, and continued to develop with steady steps at all levels.

“The benefits of the growth and development of the Investment Funds sector are many–new investments are welcomed to the Cypriot economy; government revenues are increasing; new, well-paid jobs are being created; the traditional model of the professional services sector, and the economy in general, are being diversified”.

The President of the investment promotion agency, Invest Cyprus, Evgenios Evgeniou, stated: “Development of the Investment Funds sector acquires particular importance and value if we place it in this context of efforts to build a new, and above all, sustainable growth model of the Cypriot economy”.