Cyprus presents a viable alternative to other EU domiciles at a much lower cost and is successful in attracting small and medium-sized funds avoiding the high costs of other fund jurisdictions, both in terms of initial setup and ongoing operating expenses.

Regulatory hurdles remain one of the greatest challenges for asset managers who increasingly look to outsource compliance functions. We spoke with Constantinos Meivatzis, Managing Director of IQ-EQ Cyprus, who says the firm combines industry expertise with innovative regtech solutions to deliver cutting-edge services to fund professionals and investors alike.

Thematic Exchange Traded Funds (ETFs) are experiencing record growth globally as investors want to capitalise on clean energy and technology. Demand for specialised ETFs will likely increase in Cyprus too, although these funds might not necessarily be traded on the island, says Maria Clappa, Partner at Tassos Papadopoulos and Associates LLC.

Andrey Narutskiy explains how Cyprus’ AIFs help to meet the specific needs of ultra-high-net-worth investors and says Cyprus could win more fund business as offshore fund centres remain under attack from global policy-makers.  

UCITS could be the investment theme for 2021 and beyond. As the returns on fixed deposits continue to be diminishing in the current low-interest rate environment, retail investors are asking for alternatives to traditional bank products. UCITS could be the answer, says Alexios Kartalis, General Manager of GMM Global Money Managers Ltd.

I see three areas of opportunity and growth in our sector...

We expect that the introduction of tax and redomiciliation incentives for funds and fund managers and the modernisation of procedures will aid in boosting the fund sector to even higher growth rates.

The Cypriot investment fund market is a very dynamic market that has seen impressive growth in recent years.  

Cyprus’ financial services sector has reformed and transformed itself into a key pillar of the economy, and despite the global Covid-19 crisis, the island continues to see new business. Fintech and digital finance in particular are fast developing into thriving segments of Cyprus’ finance sector and could provide solutions to the many challenges the industry is facing.

Cyprus’ investment funds industry has recorded impressive growth over the past years. Although the future is a little less certain due to COVID-19, the arrival of more medium-sized funds is seen as an important step towards attracting an even greater number of international service providers.