CySEC Reports Collective Investment Sector AUM Reaches €9.4 Billion in Q2 2024

The Cyprus Securities and Exchange Commission (CySEC) announced on Tuesday that the total assets under management (AUM) for the country’s collective investment sector reached €9.4 billion in the second quarter of 2024, marking a 2.88 per cent increase from the first quarter.

Despite the rise in AUM, the number of management companies and undertakings of collective investments (UCIs) under CySEC’s supervision remained steady at 328 during the same period. According to the quarterly statistics bulletin, this figure represents a slight decrease from the 334 UCIs recorded in the same period in 2023, reflecting a 1.8 per cent drop.

The 328 UCIs currently under supervision include 226 externally managed UCIs, 33 internally managed UCIs, and 69 external fund managers. Among the management companies, 44 are alternative investment fund managers (AIFMs), 50 are sub-threshold AIFMs, three are UCITS management companies, and five hold dual licenses as both AIFMs and UCITS managers.

Although the AUM reached €9.4 billion in the second quarter of 2024, this figure shows a 12.8 per cent decline compared to the same period in 2023. The report also indicated that the net asset value (NAV) of UCIs managed by these companies stood at €8.9 billion.

A breakdown of the AUM revealed that 59 per cent of assets are managed by AIFMs, while 18 per cent are handled by dual-licensed AIFMs and UCITS managers. Sub-threshold AIFMs manage 11 per cent of the assets, and UCITS management companies also account for 11 per cent. A small portion, just 1 per cent, is managed by foreign fund managers.

In terms of investment distribution, 89.3 per cent of UCITS assets were allocated to transferable securities, 7 per cent went to other UCIs, and 2.6 per cent was held in bank deposits. For alternative investment funds (AIFs), AIFLNPs, and registered AIFs (RAIFs), private equity formed the largest share, making up 32.2 per cent of the total AUM. Hedge funds accounted for 13.2 per cent, real estate 11.7 per cent, and funds of funds 11.3 per cent of the total assets.

Cyprus-based UCIs remain dominant in the sector, with 198 of the 225 operating UCIs domiciled in the country, accounting for 74.1 per cent of the total AUM. Of these, 162 UCIs invest at least partially within Cyprus, with these investments totaling €2.5 billion, corresponding to 26.6 per cent of the total AUM. Private equity leads these Cyprus-based investments, representing 68.5 per cent, followed by real estate at 12.8 per cent.

Regarding the types of investors, retail investors dominate the UCITS market, comprising 99.1 per cent of unitholders. In the case of AIFs, AIFLNPs, and RAIFs, 68.8 per cent of investors are classified as well-informed, 18.8 per cent are professional investors, and 12.4 per cent are retail investors.

The report also highlighted significant sector-specific investments made by UCIs during the second quarter of 2024. A total of €543.4 million was directed towards the energy sector, €233.5 million towards fintech, €743.1 million into shipping, and €77.9 million into sustainable investments.

By fLEXI tEAM