The Cyprus Securities and Exchange Commission (CySEC) currently oversees 328 Management Companies and Undertakings of Collective Investments (UCIs), while total assets under management (AUM) increased slightly in the second quarter of 2024, despite a yearly decline.
Slight Decline in Company Numbers, Growth in Assets
According to CySEC’s Q2 2024 statistics, the number of entities under its supervision dropped from 334 the previous year to 328, marking a 1.8% decrease. This figure includes 236 Externally Managed UCIs, 33 Internally Managed UCIs, and 69 External Fund Managers.
The total AUM for these entities rose by 2.88% compared to the previous quarter, reaching €9.4 billion. However, the AUM saw a year over year decline of 12.8%, down from the same period in 2023. Net assets managed by these UCIs stood at €8.9 billion by the end of the second quarter.
Breakdown of Investment Allocations
Alternative Investment Fund Managers (AIFMs) managed the largest portion of the total assets, overseeing 59% of the AUM. This was followed by 18% managed by both AIFMs and UCITS Management Companies, while Sub threshold AIFMs and UCITS Management Companies each accounted for 11%. Foreign fund managers regulated by CySEC managed just 1% of the total AUM.
Within the UCITS, a significant portion 89.3% of assets was invested in transferable securities, with smaller investments spread across bank deposits and other UCIs. For Alternative Investment Funds (AIFs), Limited Partnerships (AIFLNPs), and Registered AIFs (RAIFs), key investment areas included private equity, hedge funds, and real estate, with funds of funds making up a smaller share.
Cypriot-Based UCIs Dominate Local Investments
Of the 225 UCIs active during Q2 2024, 198 were based in Cyprus, controlling 74.1% of the total AUM. These include 13 UCITS, 49 AIFs, 45 AIFLNPs, and 91 RAIFs. Of these, 162 entities invest either partially or entirely in the local Cypriot market, accounting for €2.5 billion, or 26.6% of the total AUM. Private equity and real estate were among the most significant investment categories within Cyprus.
Sector-Specific Investments Show Growth
Key sectors receiving notable investments during the second quarter included energy, fintech, shipping, and sustainability. The energy sector attracted €543 million, while fintech investments reached €233 million. Shipping saw significant interest, with €743 million invested, and sustainable investments accounted for €78 million.
Investor Profile
Retail investors were the majority of unitholders for UCITS, while well-informed and professional investors dominated AIFs, AIFNLPs, and RAIFs. Retail investors made up a smaller portion in these categories, but they remain an integral part of the investment landscape.
