The number of investment companies in Cyprus has increased, according to the latest data released by the Central Bank on Wednesday 22nd May.
The total number of registered investment companies in Cyprus rose from 316 in December 2023 to 328 in March 2024.
At the same time, their total assets also increased. The total assets of investment companies reached €6.788 billion at the end of March, up 4.5 per cent from €6.495 billion in December 2023. Compared with March 2022, the total assets of investment corporations in Cyprus increased by 10.1 per cent.
According to Central Bank of Cyprus statistics, deposits and loans of investment funds reached €782.5 million in March 2024, compared to €782.9 million in December 2023.
In turn, the value of securities rose to €4.93 billion. Shares and other equity fell to 570.9 million euro, while non-financial assets (including property, plant and equipment) decreased by 358.9 million euro. Other assets decreased to EUR 151.2 million.
It should be recalled that investment funds are one of the main priorities for attracting FDI to Cyprus and creating conditions for foreign companies to set up operations here. The development of the investment fund sector in Cyprus leads to an increase in tax revenues, creates specialised jobs and attracts wealthy foreign professionals to the country.
It should be recalled that the highest growth of investment organisations in Cyprus was recorded between 2008 and 2020.
The total assets of these organisations will amount to €5.62 billion at the end of December 2020. This is almost 440% more than in 2008, when the value of all assets did not exceed €1.27 billion. The largest share of assets was accounted for by equities, with a total value of almost €4 billion. Non-financial assets totalled €317.6 billion. A further €702.5 million were deposits and loans and €367.6 million were securities.
It is worth noting that Cypriot investment funds invest mainly in Cypriot shares and real estate. Mixed investments are also popular. The last investment category is bonds.