Malta-domiciled funds authorised by the Malta Financial Services Authority have increased by four per cent in the first half of 2012 as 65 new collective investment scheme licences were issued.

This increase beats the performance of other EU jurisdictions where growth rates reached two per cent to June. Some countries experienced negative growth.

The new licences were granted to 59 Professional Investor Funds, five UCITS funds and one retail non-UCITS fund, the Malta Funds Industry Association said on Friday.

Malta has established itself as a fund domicile of international repute, serving the domestic and European and international markets. Key to the sector’s success is the country’s legislation for PIFs.

PIFs’ net asset value increased by almost 23 per cent, from €5.8 billion in December 2011 to €7.2 billion last June. The number of PIFs increased by almost four per cent over the same period to 460. The net assets of UCITS funds stood at €2.3 billion at the end of June, €0.7 billion or 40 per cent higher from end 2011.

Malta is now home to numerous fund managers and administrators. About 40 per cent of Malta-domiciled funds were managed by Malta-based fund managers at the end of June; 47 per cent are managed from outside Malta.

About 70 per cent of the funds domiciled in Malta were administered in Malta in June, testimony to the high quality fund administration services provided by Malta-based administrators, the MFIA said.