Cyprus investment industry stable, assets €9.5 billion

The Cyprus Securities and Exchange Commission (CySEC) released its fourth-quarter 2022 quarterly report this week, highlighting the collective investments industry in Cyprus.

During this time, CySEC oversaw 333 Management Companies and Undertakings of Collective Investments (UCIs). 243 firms operated.

In the fourth quarter of 2022, total assets under management (AUM) totaled €9.5 billion, down 3.7 percent from the third quarter.

Since the total assets under management dropped 17.7% in 2021, this is a period of stabilisation.

The commission explained that asset devaluation, investment share redemptions, and asset disposals are the main causes of investment value decline.

The Management Firms managed UCIs with a €8.9 billion NAV. 64% of AUM is managed by Alternative Investment Fund Managers (AIFMs), 10% by Sub-threshold AIFMs, 16% by AIFMs and UCITS Management Companies, 9% by UCITS Management Companies, and 1% by Regulated UCIs managed by Foreign Fund Managers.

UCITS Assets under Management were invested in Transferable Securities (84.6%), Bank Deposits (8.7%), and UCITSs and UCIs (5.5%).

AIFs, AIFLNPs, and RAIFs invest 44.3% of their Assets Under Managed in private equity, 10.4% in funds, 10.1% in real estate, and 9.8% in hedge funds.

207 UCIs operate, representing 80% of AUM. Cyprus has 13 UCITS, 56 AIF, 52 AIFLNP, and 65 RAIF UCIs.

163 of 207 UCIs invest in Cyprus, totaling €2.2 billion, 23.4 percent of their Assets Under Management.

Cyprus invests 69.5 percent in private equity and 13.1% in real estate.

UCITs have 98.9% retail investors, while AIF, AIFNLP, and RAIF have 21.1 percent professional investors, 65.7 percent well-informed investors, and 13.2 percent retail investors, according to the research.

In the fourth quarter of 2022, UCIs spent €259.6 million in energy (2.72 percent of total AUM), €60.1 million in Fintech (0.63%), €116.7 million in shipping (1.22%), and €64.4 million in Sustainable Investments (0.67 per cent of total AUM).

Notwithstanding the COVID-19 epidemic and Ukraine war, the Cyprus collective investments sector remained stable in the fourth quarter of 2022, according to the report.

Eventually, while investment values fell, the sector remained strong and CySEC-supervised enterprises remained steady.

By fLEXI tEAM