Cyprus hopes that this boom will put it in a strong position to become a credible alternative for UK-based asset managers seeking to expand or move following Brexit.
“I am delighted to note, that fund management is part of this new beginning for the Cyprus economy,” finance minister Harris Georgiades said at the 4th International Funds Summit in Nicosia.
In the last three years, funds established in Cyprus have risen by nearly 70%, from 13 in 2013 to 172 in 2018, while total assets under management rose to €5.7bn (£4.9bn) by September this year, marking an increase of 90%.
Confidence in the sector has been boosted by the announcement that Cyprus funds, UCITS and AIFs will be eligible to be listed on Clearstream’s Vestima fund processing platform.
“This is another leap forward for the Cyprus fund industry following the initial listing in June 2018 of more than 35 Cyprus domiciled funds on the Thomson Reuters platform,” Angelos Gregoriades, of the Cyprus Investment Funds Association said.
By the end of 2018, the Cyprus economy will have grown by 16% of GDP, which more than covers lost ground, and if all goes well, growth is expected to remain above 3% annually for the next three years, the country’s finance minister added. These rates make Cyprus one of the fastest growing economies in EU
Apart from tourism, shipping, real estate and business services, Cyprus’ productive base is expanding into new sectors such as higher education, innovation, offshore natural gas and renewable energy, he added.
Georgiades highlighted the rise of Cyprus as a new destination for Fund Management as an excellent example of government, industry, and regulators, working together to ensure that all the ingredients of success are in place as the country positions itself for a Brexit windfall.
“If our industry has been able to grow, it is due to a constant drive to improve quality in our products and services,” the head of the Cyprus Investment Funds Association added.