Investment Funds Showing Steadfast and Long-Term Expansion, According to CIFA
In Q1 2025, the Cyprus Investment Funds Association (CIFA) reported a significant boost in the investment funds sector, with Assets Under Management (AUM) increasing to €10.7 billion, marking a 6.6% rise from the previous quarter and a substantial 18% year-on-year growth [1][4].
This growth has contributed positively to the Cyprus economy in several ways. Domestic investments, amounting to €2.9 billion or 27.2% of total AUM, have directly supported economic development in Cyprus [1]. The increase in AUM has also bolstered Cyprus’ financial services ecosystem, enhancing its status as a regional investment fund hub and attracting capital and expertise.
The growth has also facilitated job creation in fund management and related professional services, boosting ancillary sectors.
Looking ahead, CIFA’s president, Maria Panayiotou, has highlighted that while continuous quarter-on-quarter increases are not expected, each growth phase strengthens Cyprus' collective investment ecosystem. The recent enactment of the new Law on Fund Administration Companies is expected to further enhance the sector’s positive momentum and regulatory environment, with impacts anticipated to manifest in upcoming quarters [1].
Maria Panayiotou has stated that every increase in AUM is a meaningful contribution to the consistent strengthening of Cyprus' collective investments ecosystem. CIFA remains optimistic about the future growth and development of the Investment Funds sector in Cyprus.
The latest figures published by CySEC indicate the continued and sustainable growth of the Investment Funds sector in Cyprus. As of Q1 2025, the number of licensed collective investment schemes stands at 322, with 254 active funds [1][4].
However, CIFA emphasises that any policy or regulatory changes in Cyprus must be carefully evaluated to avoid weakening its competitiveness vis-a-vis other fund jurisdictions. CIFA does not expect an increase in AUM or in the number of Investment Funds every single quarter, but rather a sustainable, cyclical growth that strengthens the sector.
In conclusion, the Q1 2025 figures reflect sustainable growth that strengthens Cyprus’ position in the investment fund industry and supports broader economic development. With optimistic future expectations due to legislative improvements and ongoing expansion of fund activities, the Investment Funds sector in Cyprus continues to show promising prospects.
References: [1] Cyprus Investment Funds Association (CIFA) press release, Q1 2025. [4] Cyprus Securities and Exchange Commission (CySEC) report, Q1 2025.
- The growth in the investment funds sector, as reported by the Cyprus Investment Funds Association (CIFA) in Q1 2025, has led to a substantial increase in financing for businesses in Cyprus.
- The boost in the investment funds sector, with assets under management (AUM) reaching €10.7 billion, has improved Cyprus' position as a regional hub for investment funds, attracting capital and expertise.
- The continuous growth in the investment funds sector, as highlighted by CIFA's president, Maria Panayiotou, is a meaningful contribution to the strengthening of Cyprus' collective investment ecosystem.
- Despite not expecting an increase in AUM or the number of Investment Funds every quarter, CIFA remains optimistic about the future growth and development of the Investment Funds sector in Cyprus, given the recent enactment of the new Law on Fund Administration Companies and the ongoing expansion of fund activities.
