Cyprus is one of the fastest growing investment fund centers in Europe thanks to a focused and continuous development of legislation and regulatory frameworks, as well as a strong financial services sector, which make Cyprus a leading investment and finance jurisdiction.
According to the quarterly statistical report issued by the Cyprus Securities and Exchange Commission (ΕΚΚ), the total amount of assets under management in the second quarter of 2021 increased by 9% to 10.7 billion euros compared to the first quarter of 2021.
At the same time, the total net asset value was EUR 8.7 billion.
Of these, 54% came from AIFM, 17% from AIFM not exceeding thresholds, 22% from AIF and UCITS fund management companies, 7% from UCITS fund management companies and 1% from enterprises managed by external managers.
ΕΚΚ currently operates a total of 289 collective investment management companies and collective investment organizations, of which 201 operate.
Of the total number of companies, 176 are externally managed operating environments, 51 are internally managed and 62 are externally managed. The total number of management companies includes 31 AIFMs, 73 AIFMs below the limit, 3 UCITS management companies and 4 dual license companies (AIFM and UCITS management companies).
As for the investment policy of UCITS, they invest about 86% of the assets under management in securities, followed by investments in deposits with a 6% percentage. For OEE, OEEPAP and KOEE, 36.7% of assets under management are in private equity investments and 12% in real estate.
It is noteworthy that 75% of the assets under management are owned by 155 Cypriot OSEs (10 UCITS, 53 AIF, 62 OEEPAP and 30 KOE). Of the 172 operating companies operating, 128 invest in Cyprus in part or in full, their investments amount to about 2.3 billion euros (21.8% of total assets under management). 54% of investments in Cyprus are attributed to investments in Private Equity, while investments in real estate account for 13%.
As for the classification of investors, in UCITS 99.4% are private investors, and in other funds - 36.1% are professional investors, 51.7% are qualified investors and only 12.2% are private investors.
Finally, in terms of investments in OSE in specific sectors in the second quarter of 2021, assets under management in the energy sector amounted to 346 million euros (3.24% of the total ESA), in the financial technology sector - 29.1 million euros (0 , 27% of the total ESA), in the shipping sector - 35.9 million euros (0.34% of the total ESA), in the field of sustainable investments - 36.9 million euros (0.35% of the total ESA) and in the cryptocurrency sector - 6.6 million euros (0.06% of the total ESA).
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.