A significant increase of 12.6% was recorded in the first quarter of 2023 in the assets under management of the Cypriot Investment Funds, compared to 2022, says the Cyprus Investment Funds Association (CIFA).
CIFA President Andreas Yiasemides stressed the need to complete the regulatory framework to turn Cyprus into an even more attractive destination.
According to a statement, CIFA said the Investment Funds sector in Cyprus lays solid foundations for further development.
“It is proving resilient amid a period of intense volatility in the international capital markets, which inevitably affected Cyprus as well”.
At the end of March 2023, the Assets under Management of the Cypriot Investment Funds were €10.7 bln compared to €9.5 bln at the end of 2022, registering an increase of 12.6%, with the total net asset value amounting to €9.7 bln.
The total number of licensed companies in the sector increased by 4% year-on-year to 335.
“Even more significant is the increase in the number of licensed companies with activities, which reached 252, compared to 235 in the corresponding period of 2022.
“This is the largest number of licensed investment funds we have ever had in Cyprus.
“It is a strong indication that the sector is now maturing and is entering a period in which Investment Funds which were licensed in the previous period are now starting to implement their investment plan”, said Yiasemides.
CIFA said the continuous contribution of Investment Funds to the growth of the Cypriot economy is equally important since over €2.5 bln (23.6% of the total Assets Under Management) were invested in Cyprus sectors such as Health, Education, Shipping and Land Development.
“Cyprus is establishing itself as a preferred option for certain Investment Funds and administrators, and, at the same time, there is increased interest from international organisations that provide support services to the sector.
“Through continuously strengthening the sector’s regulatory framework, we are optimistic about its further development.
Yiasemides said an element of decisive importance is the approval of the law governing the fund administration services.
“The law is necessary to complete the legislative framework of the sector, providing an additional level of security for both investors and administrators.”
