CySEC: Assets under management surpass €10.7b

The number of Management Companies and Undertakings of Collective Investments (UCIs) reached 334 in the second quarter of 2023, with the assets under management surpassing €10.7b.

Based on the quarterly statistics bulletin by the Cyprus Securities and Exchange Commission (CySEC), which presents the most important data for the Collective Investments sector in Cyprus, CySEC supervised 334 Management Companies and Undertakings of Collective Investments (UCIs) in Q2, down 0.30% from 335 in the first quarter of 2023 but up 1.2% from 330 in the same period last year.

The 334 entities include 224 Externally Managed UCIs, 37 Internally Managed UCIs and 73 External Fund Managers. The total number of Management Companies includes 47 AIFMs, 54 Sub-threshold AIFMs, 3 UCITS Management Companies and 6 dual license entities (AIFMs and UCITS Management Companies).

The Total Assets Under Management (AUM) reached €10.7b, recording a 0.42% increase over the first quarter of 2023, whereas comparing with the same period in 2022, the increase amounts to 0.87%.

The UCIs, managed by the Management Companies, had a Net Asset Value (NAV) of €10.1b. Approximately, 67% of the AUM relate to Assets managed by the AIFMs, 14% by the AIFMs and UCITS Management Companies, 10% by the Sub-threshold AIFMs, 8% by the UCITS Management Companies and only 1% by the Regulated UCIs that are managed by Foreign Fund Managers.

Approximately 89.2% of UCITS Assets under Management were invested in Transferable Securities and 5.5% were invested in UCITSs and UCIs while 4.2% in bank deposits. Regarding AIFs, AIFLNPs and RAIFs 48.3% of the Assets Under Management related to investments in Private Equity, while the investment in Hedge Funds represents the 9.8% of the AUM. Investments in Real Estate constitute 9.3% of the AUM while Investments in Funds of Funds account for 9.1%, of the total Assets Under Management.

There is a total of 217 UCIs with operations. The 81% of the total AUM is held by 197 UCIs domiciled in Cyprus (13 UCITS, 55 AIFs, 51 AIFLNPs and 78 RAIFs). From the total 217 UCIs, 162 invest in Cyprus partially or entirely and these investments amount to €2.8b or 26.7% of the total Assets Under Management. The 73.6% of the investments in Cyprus are in Private Equity, while the 11.1% are in Real Estate.

When it comes to categorising unitholders, the vast majority of UCITS are retail investors (98.9%), while for AIFs, AIFNLPs and RAIFs, 68.1% are well-informed investors, 18.8% of them are professional investors, and only 13.1% are retail investors.

Regarding the specific sectors that UCIs invested in, during the second quarter of 2023, AUM in the Energy sector amounted to €456.2m (4.248% of total AUM), while €108.4m was invested in Fintech (1.009% of total AUM), €555.2m in Shipping (5.169% of total AUM) and €71.9m in Sustainable Investments (0.669% of total AUM).

The Quarterly Statistics Bulletin is available here.