The introduction a new fund vehicle by new regulations governing European Long-Term Investment Funds (ELTIFs) on 9 December will bring more opportunities for professional and retail investors to fulfil their long-term investment objectives.
That’s the view of the Cyprus Investment Funds Association (CIFA), which says that, for the first time, ELTIFs will allow for fund managers to lend directly to the real economy as part of a major milestone marking the increased sophistication of the Capital Markets Union (CMU). CIFA believes that owing to Cyprus’ already well-established Alternative Investment Funds (AIF) legal framework, ELTIFs can be marketed across the EU from Cyprus under the Alternative Investment Fund Management (AIFMD) passport. Whilst subject to further rigorous suitability requirements, ELTIFs will also allow fund managers to access a wider investor base including retail investors, through a potentially liquid, tax-efficient and low-risk investment vehicle.
CIFA President, Angelos Gregoriades, says: “As investors search for portfolio diversification and income opportunity – and the tangible demand for infrastructure spending across Europe increases – the introduction of ELTIFs offers real investment potential for both investors and the region’s economy alike.
“CIFA is well-placed to support the introduction of ELTIFs. There is opportunity in Cyprus for fund managers looking to benefit from a competitive platform through which to passport compliant investment vehicles in long-term assets. At the strategic gateway of Europe, Asia and Africa, we look forward to welcoming eligible investors to Cyprus.”
