Newsroom
Investment companies in Cyprus collectively manage assets worth €9.4 billion, with the amount growing by about 2.9% in the second quarter of 2024 but still below last year's figures. This money is managed by different kinds of investment funds that pool resources to buy assets such as stocks, private businesses, real estate, and other investments.
These funds are divided into categories:
1. Types of Investment Companies: Cyprus has several kinds of investment companies, including those managing alternative funds, mutual funds, and others. Some are regulated by Cyprus authorities, while others operate under different rules.
2. Fund Types and What They Invest In: Investments vary by fund type. For example, UCITS (a kind of mutual fund) focus heavily on buying shares in publicly traded companies (89.3%), while alternative funds (AIFs) focus more on private companies (32.2%), hedge funds, or real estate. Investments also extend to other funds or even bank deposits.
3. Investing in Cyprus: Out of all the money managed, €2.5 billion is invested in Cyprus itself. These investments go into local businesses or projects, mainly in private companies (68.5%) and real estate (12.8%).
4. Who Invests in These Funds: For standard mutual funds (UCITS), most investors are everyday people. In contrast, for alternative funds, the investors are usually well-informed or professional investors rather than average individuals.
Overall, these investments play a role in supporting the Cypriot economy, providing funding for local businesses, and contributing to the country's financial growth.
[With info from CNA]
