AMF registers the third alternative investment fund

2024-08-01 13:07:00, Ekonomi CNA

AMF registers the third alternative investment fund

Financial Supervision Authority

The Financial Supervision Authority (AMF) decided on Wednesday to approve the registration of the third alternative investment fund.

The new fund, Credins Optimal, will be managed by the management company Credins Invest.

Currently, two alternative investment funds are licensed in Albania, Sea Land Investment Fund and Green View Alternative Investment Fund. Both funds are also managed by the company Credins Invest. The assets of these funds are mainly invested in real estate.

According to data from the AMF, at the end of last year, the total assets of alternative investment funds reached almost five billion ALL, an increase of 8% compared to the previous year. However, their weight against the total assets of investment funds in the country has remained at levels close to 2022, with about 10% of the total market.

At the end of 2023, the largest fund, Sea Land Investment Fund, had total assets of approximately 3 billion ALL, an increase of 8.4% compared to the previous year. While the other fund, Green View Alternative Investment Fund, owned total assets for more than 1.9 billion ALL, increasing by 7.5% compared to 2022.

These funds own some real estate near the area where Vlora Airport is being built. The increase in property value has had a positive effect on the total assets of these funds.

The new law "On Collective Investment Enterprises", which entered into force in June 2020, created the legal basis for alternative investment funds as well. Only professional and qualified investors can invest in these funds.

According to the law, professional clients are classified as entities licensed to operate in the financial markets, such as banks, investment firms, insurance companies, collective investment enterprises, voluntary pension funds and the management companies of these enterprises, etc.

Also, large enterprises that fulfill at least two of the criteria, having total assets of at least 2.6 billion ALL, net turnover of at least 5.2 billion ALL and own capital of at least 260 million ALL, are recognized as professional investors.

Professional investors are also defined as central and regional government units, public bodies that administer public debt, central banks, international institutions, such as the World Bank, the International Monetary Fund, the European Central Bank, the European Investment Bank and other similar international organizations.

Alternative investment funds can take the form of closed joint ventures with the form of a commercial company or contractual form (investment funds) which are suitable for making illiquid investments, such as real estate./Monitor