The Cyprus Investment Funds Association (CIFA) is expecting strong growth in the island’s Investment Funds sector 2021.
According to data published by the Cyprus Securities and Exchange Commission (CySEC), at the end of the first quarter of 2021, the assets under management of Collective Investments (UCIs) reached EUR9.8 billion, the highest historical level to date, recording a significant quarterly increase of 14 per cent.
“During 2020 and the Covid-19 pandemic, the Investment Fund sector was tested in Cyprus, as well as internationally, and proved to be very resilient. We were optimistic that with the gradual normalization of the situation the sector’s growth rate would intensify and we are pleased that these forecasts are confirmed,” says the president of CIFA, Andreas Yiasemides.
Out of the 166 UCIs with activities, 123 invest in Cyprus, partially or wholly, with their domestic investments amounting to EUR2.2 billion (22.8 per cent of total Assets under Management).
CIFA, in collaboration with Invest Cyprus and other stakeholders, is intensifying its promotional activities to highlight the advantages of Cyprus as a destination for Investment Funds. The recent publication of the Consultation Paper on a proposed draft law regulating the profession of investment fund administrators and the provision of the relevant services is a particularly positive development. CIFA is optimistic that the final bill will be put to vote in the House of Representatives in the coming months, a development that will complete the sector’s legislative framework.