Cyprus is consolidating its position as an international hub for Investment Funds, with the sector growth outpacing its European peers, Thomas Tilley, Senior Economist at the European Funds and Asset Management Association (EFAMA), told a Digital Workshop titled “The post-pandemic landscape for Cyprus Investment Funds,” organized by CIFA, in collaboration with Invest Cyprus.
According to a press release issued by CIFA, presenting the international trends for Collective Investments, Tilley pointed out that the growth rate of the sector in Cyprus in the last few years has been far greater than its counterparts in Central and Eastern Europe.
At the same time, Tilley pointed out that “Cyprus is evolving into a cross-border hub for Investment Funds,” noting that at the end of 2020, 47% of the net assets in Cyprus were held by cross-border funds.
This particular trend shows that Cyprus is growing into a new European destination for international Investment Funds, since only Ireland (92%), Luxembourg (76%) and Malta (76%) concentrate higher percentages – these are destinations that have been servicing Investment Funds for decades, the press release added.
Experts in the field of Investment Funds presented the latest global and local developments and analysed the sector’s trajectory in the post-pandemic era.
Andreas Yiasemides, CIFA’s President, analysed the sector’s rise, which had an upward trajectory in the last five years, during which Investment Funds saw their assets under management grow to the point that they are currently exceeding €8.5 billion. The number of Investment Funds and Managers also showed a corresponding increase.
Invest Cyprus CEO and CIFA Vice-President George Campanellas, explained that the Investment Funds sector is one of the main strategic pillars for attracting investments in Cyprus and that the interest, insofar, has been strong.
The contribution of George Theocharides, the Vice-Chairman of the Supervisory Authority, was considered as particularly important as he outlined the actions taken by the Cyprus Securities and Exchange Commission in relation to the sector’s oversight and the upcoming legal and regulatory changes.
CIFA’s board member George Karatzias presented the characteristics of both Investment Funds and Investment Funds Managers that operate in Cyprus and the requirements for getting licenced. Margarita Liasi, CIFA member, analysed the tax provisions in relation to Cyprus Investment funds, investors and Managers. Finally, CIFA’s Vice-President Panikos Teklos explained how Cyprus is emerging as a European centre for asset management and a Fund Hosting Jurisdiction.
CIFA said that, in collaboration with Invest Cyprus, is planning a series of free digital workshops in the coming months, aiming to educate and inform its members and the general public about the latest developments surrounding the sector of Investment Funds, among other things.