Fund diversity drives Cyprus’s appeal in global investment market

The Cyprus Investment Funds Association (CIFA) on Wednesday welcomed the latest results from the Cyprus Securities and Exchange Commission’s (CySEC) quarterly bulletin for the country’s funds sector for the fourth quarter of 2024.

CIFA said that the latest update “reflects the steady growth trajectory of the investment funds sector in Cyprus“.

Specifically, Cyprus was home to 321 Management Companies and Undertakings of Collective Investments (UCIs) by the end of 2024. Of these, 253 were already operational.

Total Assets Under Management (AUM) stood at €10.1 billion. This marks a robust increase of 10.21 per cent compared to the previous quarter.

“The results of the fourth quarter of 2024 demonstrate that Cyprus’ strategy to develop a flexible, stable, and competitive framework for investment funds is yielding positive outcomes,” CIFA president Maria Panayiotou stated.

“The increase in Assets Under Management, the creation of new funds, and the strengthening of investments in the Cypriot market fill us with optimism but also with a sense of responsibility for the future,” she added.

Additionally, the association reported that that total net asset value reached €9.6 billion.

This growth was observed across a broad spectrum of investment schemes, while the rise in AUM was fuelled by both new and existing Investment Funds.

There was also notable activity in Undertakings for Collective Investment in Transferable Securities (UCITS), Alternative Investment Funds (AIFs), and other fund categories such as AIFs with Limited Number of Persons (AIFLNP) and Registered AIFs (RAIFs).

This diversity of fund types reinforces Cyprus’ appeal to investors with a variety of profiles and objectives.

“CIFA, in its role as the institutional representative of the sector, will continue to work intensively to support and promote the industry, with coordinated actions aimed at positioning Cyprus as an international investment funds hub,” said Panayiotou.

“In this context, we are engaging in targeted contacts with government bodies and regulatory authorities, organising and participating in international events, presentations, and roadshows, and strengthening cooperation with strategic partners both in Cyprus and abroad,” she added.

“Specifically for 2025″, she continued, “we are planning three additional roadshows in key jurisdictions, giving fund managers and other stakeholders promoting Cyprus the opportunity to showcase its advantages.”

“The continuous promotion of the Cypriot investment ecosystem and our active involvement in policy formation further strengthen Cyprus’ position on the international map and significantly contribute to the sustainable growth of our economy,” the CIFA president concluded.