Cyprus has matured as a destination for investment funds, association says

The Cyprus Investment Funds Association (CIFA) on Friday expressed satisfaction with the increase in Assets Under Management (AUM) of Cypriot investment funds.

According to the latest data released this week by the Cyprus Securities and Exchange Commission (CySEC), Cyprus’ total AUM reached €9.1 billion at the end of the first quarter of 2024.

This represents a 6.35 per cent increase compared to the fourth quarter of 2023, while the number of Management Companies and Undertakings for Collective Investments remained steady at 328.

Equally significant is that a substantial portion of the assets remains invested in key sectors of the Cypriot economy. Specifically, 26.8 per cent of the AUM, amounting to €2.4 billion, is invested within Cyprus.

In addition, CIFA pointed out that investment funds also focus on sectors that will drive the broader transition of the economy towards a more sustainable model, such as energy, sustainable investments, shipping, and financial technology. Investments in these sectors have exceeded €1.5 billion.

“The increase in the Assets Under Management of investment funds, following a period of expected and natural decline, reaffirms once again that Cyprus has matured as a destination for investment funds, keeping pace with international trends,” CIFA president Maria Panayiotou said.

“We are optimistic about the sector’s further development as there are strong indications of interest from investment funds and managers,” she added.

“To cultivate this interest, significant reforms affecting the sector must be implemented as soon as possible, given the particularly intense international competition,” Panayiotou concluded.