The Cyprus Securities and Exchange Commission (CySEC) on Tuesday reported that the total assets under management (AUM) for the country’s collective investment sector reached €9.4 billion in the second quarter of 2024, reflecting a 2.88 per cent increase from the first quarter.
In addition, the number of management companies and undertakings of collective investments (UCIs) under supervision remained steady at 328 during the same period.
According to CySEC’s quarterly statistics bulletin, the current number of 328 UCIs marks a slight decline from 334 in the same period of 2023, representing a 1.8 per cent drop.
These entities include 226 externally managed UCIs, 33 internally managed UCIs, and 69 external fund managers.
Moreover, of the total number of management companies, 44 are alternative investment fund managers (AIFMs), 50 are sub-threshold AIFMs, 3 are UCITS management companies, and 5 hold dual licenses as both AIFMs and UCITS managers.
The total AUM increased to €9.4 billion in the second quarter, but when compared to the same period in 2023, it shows a 12.8 per cent decrease.
The report showed that the net asset value (NAV) of UCIs managed by these companies reached €8.9 billion.
A breakdown of asset management reveals that 59 per cent of the AUM is managed by AIFMs, 18 per cent by dual-license AIFMs and UCITS managers, 11 per cent by sub-threshold AIFMs, and 11 per cent by UCITS management companies.
What is more, a small fraction, just 1 per cent, is managed by foreign fund managers.
In terms of investment allocation, 89.3 per cent of UCITS assets were directed towards transferable securities, with 7 per cent invested in other UCIs and 2.6 per cent placed in bank deposits.
For alternative investment funds (AIFs), AIFLNPs, and registered AIFs (RAIFs), private equity constituted the largest portion, accounting for 32.2 per cent of the total AUM.
Hedge fund investments represented 13.2 per cent, real estate made up 11.7 per cent, and funds of funds comprised 11.3 per cent of the overall AUM.
Cyprus-based UCIs dominate the sector, with 198 of the 225 operating UCIs domiciled in the country, holding 74.1 per cent of the total AUM.
Of these, 162 invest at least partially in Cyprus, with these investments totalling €2.5 billion, corresponding to 26.6 per cent of the total AUM.
Furthermore, private equity accounts for 68.5 per cent of investments in Cyprus, followed by real estate at 12.8 per cent.
Regarding investor categories, retail investors dominate the UCITS market, making up 99.1 per cent of unitholders.
Meanwhile, in AIFs, AIFLNPs, and RAIFs, 68.8 per cent of investors are well-informed, 18.8 per cent are professional investors, and 12.4 per cent are retail investors.
Finally, UCIs also made significant sector-specific investments during the second quarter of 2024, with €543.4 million allocated to the energy sector, €233.5 million to fintech, €743.1 million to shipping, and €77.9 million to sustainable investments.
