Assets under management (AuM) in Cyprus have doubled in two years, according to data from the Cyprus Securities and Exchange Commission (CySEC).
The increase from €3.9 billion to €7.6 billion by the end of the third quarter this year was attributed by CySEC to low set-up costs and the country’s “favourable” tax regime.
George Campanellas, vice-president of the Cyprus Investment Funds Association (Cifa), said: “The strategic position of Cyprus and the plethora of signed double tax treaties that allows for direct investments in the EU and in developing countries throughout the Middle East make Cyprus an attractive jurisdiction for setting up alternative investment funds.”
More than half of the country’s domiciled AuM relates to private equity and venture capital investments.
There are also now 203 management companies and undertakings of collective investments in Cyprus, up from just 13 companies five years ago, according to the report.
Cifa president Andreas Yiasemides said: “The entire fund ecosystem, from custodians, fund administrators and other professionals has been established to accommodate the growth in the fund industry with more anticipated to follow.”
Source: Funds Europe