CyprusProfile.com asked Tanguy van de Werve, Director General of EFAMA to describe the current situation with Cyprus’ Investment Funds' sector and what his expectations are for 2021.

The Cypriot investment fund market is a very dynamic market that has seen impressive growth in recent years. Between end 2015 and end 2019, net assets of Cypriot domiciled UCITS and AIFs grew by 121%, the strongest asset growth of all European countries. Cyprus is also rapidly developing into a European cross-border fund centre, at end 2019, almost half of Cypriot domiciled funds were held by foreign investors. On average, Cypriot funds resisted well to the sharp market downturn in recent months. Net fund assets dropped by almost 8% in March 2020, during the Covid-19 related stock market drop, but bounced back strongly in April.