"Welcome to Funds.cy, your gateway to Cyprus's investor-friendly fund industry."

Access the EU market and maximize Cyprus's financial benefits by using Funds.cy, in order to simplify fund setup and management in Cyprus.

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1. Undertakings for Collective Investment in Transferable Securities (UCITS)

UCITS funds are regulated investment funds that can be marketed to retail investors across the European Union (EU) under a harmonized regulatory framework.

2. Alternative Investment Funds (AIFs)

An Alternative Investment Fund (AIF) is a collective investment vehicle that pools capital from multiple investors to invest in various asset classes such as real estate, hedge funds, private equity, and venture capital. AIFs offer diversified investment opportunities beyond traditional stocks and bonds, typically targeting institutional or high-net-worth investors. They are regulated under the Alternative Investment Fund Managers Directive (AIFMD) in the European Union.

3. Registered Alternative Investment Funds (RAIFs)

The Registered Alternative Investment Fund (RAIF) in Cyprus is a flexible investment vehicle designed for professional and well-informed investors. It operates without direct CySEC regulation, instead being managed by a licensed Alternative Investment Fund Manager (AIFM). Governed by the Alternative Investment Funds Law of 2018, RAIFs offer broad investment flexibility, can be structured in various legal forms, and benefit from EU passporting rights for distribution across the EU. They provide transparency and investor protection through AIFM oversight, while also taking advantage of Cyprus' favorable tax regime and strategic location.

4. Alternative Investment Fund Managers (AIFMs)

An Alternative Investment Fund Manager (AIFM) is a regulated entity responsible for managing and overseeing Alternative Investment Funds (AIFs), ensuring compliance with legal and regulatory requirements. AIFMs conduct portfolio management, risk management, and reporting activities, playing a crucial role in investor protection and fund performance. They operate under the framework of the Alternative Investment Fund Managers Directive (AIFMD) in the European Union.

5. European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF)

European Venture Capital Funds (EuVECA) are investment funds that specialize in providing financing to small and medium-sized enterprises (SMEs) in their early stages of development across the EU. They benefit from a streamlined regulatory framework aimed at facilitating cross-border fundraising and investment. European Social Entrepreneurship Funds (EuSEF) are investment funds dedicated to supporting social enterprises that have a positive social impact. They adhere to specific criteria set by EU regulations and aim to attract investment into ventures that combine financial returns with social benefits.

6. Real Estate Funds (REF)

Real Estate Funds (REFs) are companies that own, operate, or finance income-producing real estate. They provide investors with an opportunity to invest in portfolios of real estate assets through the purchase of shares or units, similar to mutual funds. REFs are known for distributing a significant portion of their income as dividends, making them attractive for income-seeking investors. They often focus on specific sectors such as residential, commercial, or industrial properties.

Fund Manager

A fund manager is an individual or entity responsible for overseeing the investment decisions and management of a pooled investment vehicle, such as mutual funds, hedge funds, or pension funds. Their responsibilities include conducting research, making investment decisions aligned with fund objectives, managing risks, and ensuring compliance with regulatory requirements. Fund managers aim to maximize returns for investors while adhering to the fund's investment strategy and policies.

Investment Strategy

An investment strategy outlines a plan or approach used by investors to allocate capital across various assets or securities with the goal of achieving specific financial objectives. Strategies can vary widely, focusing on factors like risk tolerance, time horizon, diversification, and expected returns. Common strategies include growth investing (seeking capital appreciation), value investing (finding undervalued assets), income investing (generating regular income), and momentum investing (capitalizing on trends in asset prices). The strategy chosen depends on the investor's goals, preferences, and market conditions.

Management Company

A management company, in the context of finance and investment, is an entity responsible for overseeing and operating investment funds or portfolios on behalf of investors. This includes making investment decisions, managing assets, conducting research and analysis, handling administrative tasks, and ensuring compliance with regulatory requirements. Management companies may specialize in various types of funds such as mutual funds, hedge funds, private equity funds, or pension funds, catering to both individual and institutional investors. Their primary goal is to optimize investment returns while managing risks effectively.

Regulation

Depositary

A depositary in Cyprus is a regulated entity responsible for overseeing assets on behalf of investment funds. They ensure compliance with legal and regulatory requirements, manage transactions, and provide oversight to protect investor interests. Depositaries play a crucial role in maintaining transparency and security within the financial services sector.

Custody

Custody services in Cyprus involve the safekeeping and administration of financial assets such as securities and cash on behalf of clients. Custodians ensure assets are securely held, manage transactions like settlements and income collection, and may offer additional services such as reporting and corporate actions processing. They play a pivotal role in safeguarding client assets and supporting efficient operations within the financial markets.

Regulation

Both depositaries and custodians in Cyprus are regulated entities, typically under the oversight of the Cyprus Securities and Exchange Commission (CySEC)

1. Custodian Banks

Safeguard the fund's assets, holding them in custody and ensuring they are accounted for accurately

2. Transfer Agents

Manage the processing of investor transactions

3. Fund Accountants

Responsible for preparing the fund's financial statements and calculating the fund's net asset value (NAV) on a regular basis

4. Registrar

Maintains the register of shareholders or unitholders in the fund

1. External Auditor

External auditors are typically certified public accountants who are not employees of the company they audit.

2. Internal Auditor

Internal auditors are employed by the organization they audit.

3. Tax Auditor

Tax auditors review tax returns to ensure compliance with tax laws and regulations

4. Information Systems Auditor

Information systems auditors, also known as IT auditors, specialize in evaluating the controls and security measures related to information technology systems and data.