Cyprus Investment Funds Association (CIFA) and Invest Cyprus’ seventh iteration of the International Funds Summit drew international attention to the island’s progress and potential as a fund management and investment destination.
“It is worth making special reference to the International Funds Summit becoming a reference point for the investment funds sector in the wider region since most of the delegates were from abroad and now recognise Cyprus as a dynamic, developing destination,” CIFA said.
The summit examined a plethora of topics and points of discussion, including Cyprus’ economic outlook, the investment vehicles and asset classes that are currently leading the market, cross-border distribution, sustainable investments, as well as asset management, among others.
The summit, which took place on the first two days of November, involved the participation of more than 800 delegates from more than 30 countries. This was facilitated by the hybrid format of the event, allowing overseas delegates to observe and participate through online means.
During the conference, Cypriot Finance Minister Constantinos Petrides spoke on the country’s management of the coronavirus pandemic, the diversification of the Cypriot economy, as well as the country’s current and future economic outlook.
“The general government balance recorded a deficit of 5.7 per cent of GDP in 2020, following the strong performance of the last four years, while it is expected to record a deficit of around 5.0 per cent in 2021,” Petrides said during the summit.
Petrides added that the budget position is expected to improve considerably from 2022 onwards, before reaching a surplus by 2024.
George Theocharides, the chairman of the Cyprus Securities and Exchange Commission (CySEC), underlined the commission’s commitment towards the development of the fund management and investment sector in Cyprus in a sustainable way, while at the same time safeguarding investors through stringent monitoring and oversight.
CySEC is currently regulating 289 fund management companies and investment funds, representing a rise of 183 per cent from 2016 when that number stood at 102 companies.
Meanwhile, CIFA President Andreas Yiasemides said that Cyprus’ reputation as the European Union’s most rapidly developing investment fund destination is backed by data provided by the European Fund and Asset Management Association (EFAMA).
EFAMA represents the interests of the European Union’s investment fund industry. CIFA is Cyprus’ representative at the association.
“If the effort to develop the sector continues with the same prudence and seriousness as it has done so far, the medium-term goal of increasing Cyprus’ assets under management (AuM) to €25 billion is entirely achievable,” Yiasemides added.
Finally, Invest Cyprus Deputy Director General Marios Tanousis said that Cyprus has enjoyed increased interest from investors, adding that regulatory adjustments are being implemented where necessary to increase the country’s competitiveness.