Investment funds new pillar

Despite the challenges, 2021 was another successful year for the Investment Funds sector in Cyprus; total Assets Under Management (AUM) reached EUR 11.6 bln from EUR 8.6 bln, an annual increase of 34.8%.

The data published by the Cyprus Securities and Exchange Commission (CySEC) indicate a significant but steady increase in the sector’s size.

Regulated Management Companies and Undertakings of Collective Investments, in the fourth quarter of 2021, for the first time exceeded 300, reaching 310 of which 224 already have activities. A year earlier, the number of licensed companies was 283, of which 197 had activities.

The funds invested by the Investment Funds in the Cypriot economy have also increased significantly.

The total AUM invested in Cyprus at the end of 2021 was EUR 2.6 bln, an 18% annual rise.

The Cyprus Investment Funds Association (CIFA) believes that the growth observed in recent years, even during the pandemic and high uncertainty, established the Investment Fund sector among the fastest growing in the economy.

CIFA said it would continue to “submit suggestions and proposals for the continuous modernisation of the legal and tax framework governing Collective Investments”.

“Under these conditions, Cyprus can compete equally with other European destinations and continue to attract Funds and Administrators worldwide.”