Cyprus is one of the fastest growing centers of investment funds in Europe due to the purposeful and continuous development of legislation and regulatory framework, as well as a powerful financial services sector, which make Cyprus a leading jurisdiction in the field of investment and finance.
According to the quarterly statistical report released on Thursday, December 16, by the Cyprus Securities and Exchange Commission, the total amount of assets under management in the third quarter of 2021 increased by 8.6% to 11.6 billion euros compared to the second quarter of 2021.
There are a total of 298 collective investment management companies and collective investment organizations under the jurisdiction of EΚΚ, of which 217 carry out their activities.
Of the total number of companies, 187 are operating environments with external management, 49 - with internal management and 62 - with external managers. The total number of management companies includes 33 AIFM (alternative investment funds), 70 AIFM below the limit, 4 UCITS management companies (enterprises of collective investment in securities) and 4 companies with a dual license (AIFM and UCITS management companies).
As for the net assets (NAV) managed by these companies, in the third quarter of 2021 their volume reached 9.8 billion euros.
Of these, 57% came from AIFM, 14% - from AIFM not exceeding the threshold values, 29% - from AIF management companies, UCITS funds and enterprises that are managed by external managers. About 86.3% of UCITS' assets are invested in securities, followed by investments in deposits.
AIF, AIFLNP (Alternative Investment Fund with a Limited number of Persons) and RAIF (Reserved Alternative Investment Fund) mainly invest in private capital (38.8%) While 20% of assets under management are redirected to hedge funds.
It is noteworthy that of the 187 operating enterprises operating, 139 invest in Cyprus partially or completely, their investments amount to about 2.3 billion euros (19.5% of total assets under management). At the same time, 62.2% of investments in Cyprus fall on private capital, and 13.4% - on the real estate market.
As you may know, investment funds are one of the key priorities for attracting foreign direct investment to Cyprus and creating conditions for foreign companies to transfer their business here.
The development of the investment funds sector in Cyprus leads to an increase in tax revenues, creates specialized jobs and attracts wealthy foreign specialists to the country.