• The Bank Employees' Provident Fund of Cyprus restructured its portfolio in 2025, increasing its net assets to €685.1 million.

• The new strategy reduced investment risk while significantly boosting liquidity and bank deposits to €135.8 million.

• The Fund limited its exposure to individual stock holdings, reducing its equity stake in Bank of Cyprus to 4.76%.

• In real estate, the strategic acquisition of Hamura Properties was completed for €22 million to strengthen assets.

• At the same time, the sale of Coramono Properties to the ETYK Health Fund yielded liquidity of €4.3 million and a substantial accounting profit.

All-Time High Asset Growth

The Bank Employees' Provident Fund of Cyprus completed a deep structural restructuring of its investment portfolio in 2025. According to the Fund's report and financial statements, submitted to the Registrar of Occupational Retirement Provision Funds on June 26, 2026, the new strategy focuses on drastically reducing investment risk, safeguarding members' capital, and establishing an unprecedented cash cushion, driving total assets to historic highs.

The success of this investment pivot is reflected in the balance sheet figures, establishing the Fund as one of the most robust institutional investors in the local market:

• Net assets recorded a spectacular increase, reaching €685.1 million compared to €548.4 million in 2024.

• Total assets reached €694.4 million.

• Profitability and revenues locked in at €80.69 million from investment sales, while dividend income surged to €14.69 million (up from €5.75 million in 2024).

• Interest income nearly doubled to €5.05 million (up from €2.54 million), acting as key drivers for the asset surge.

€117M Liquid Cash Base

The most striking element is the strengthening of the Fund's cash position. Cash and bank deposits jumped to €135.8 million, up from just €53.2 million the previous year.

The architecture of this liquidity demonstrates a preference for maintaining immediate purchasing power: €117.3 million is held in current accounts to capitalize on market opportunities, €18.5 million is placed in fixed-term deposits, and approximately €20,000 is kept in notice accounts.

Portfolio Restructuring and Risk Reduction

The Fund's structural shift is characterized by a departure from high concentration risk in individual securities toward collective investment schemes (funds).

As part of reducing direct equity exposure and complying with statutory regulatory limits on investments in sponsoring undertakings, the Fund trimmed its stake in Bank of Cyprus to 4.76% (down from 4.82% in 2024). Despite this gradual reduction, the Fund remains one of the largest institutional shareholders of the Bank of Cyprus Group.

Real Estate Investments and Asset Sales

Real estate remains firmly under the lens of the Fund’s investment committee. Direct property investments remained stable at €11.49 million, while indirect real estate holdings through subsidiaries reached €44.99 million.

Two major transactions stood out during the year:

• The completion of the 100% acquisition of Hamura Properties Ltd from Bank of Cyprus for €22 million.

• The sale of Coramono Properties Ltd to the ETYK Health Fund for €4.3 million, an internal transaction that yielded an accounting profit of €1 million.

Completing the 100% acquisition of Hamura Properties Ltd from Bank of Cyprus marks a key move for the Provident Fund. The €22 million investment aligns with the Fund's long-standing strategy to enhance its real estate portfolio. By securing full control of the entity, the Fund strengthens its footprint in the domestic market with high-value assets capable of delivering long-term yield and stability.

Conversely, the sale of Coramono Properties Ltd to the ETYK Health Fund for €4.3 million allowed the Provident Fund to monetize an asset, lock in a net accounting profit of €1 million, and generate additional liquidity during its operational restructuring.

Source: ink.com