In the second quarter of 2023, the Cyprus Securities and Exchange Commission (CySEC) reported that the assets under management (AUM) for Management Companies and Undertakings of Collective Investments (UCIs) exceeded €10.7 billion. CySEC oversees a total of 334 Management Companies and UCIs, a slight decrease of 0.30% from the first quarter of 2023 but representing a 1.2% increase compared to the same period in the previous year. This includes 224 Externally Managed UCIs, 37 Internally Managed UCIs, and 73 External Fund Managers.
Among these 334 entities, there are 47 Alternative Investment Fund Managers (AIFMs), 54 Sub-threshold AIFMs, 3 UCITS Management Companies, and 6 dual-license entities operating as both AIFMs and UCITS Management Companies.
The Total AUM reached €10.7 billion for the second quarter, showing a 0.42% increase compared to the first quarter of 2023. The AUM increase was even more pronounced, at 0.87%, when compared to the same period in 2022.
The UCIs managed by these Management Companies accounted for a Net Asset Value (NAV) of €10.1 billion, with approximately 67% of AUM managed by AIFMs. The AUM distribution showed 14% by AIFMs and UCITS Management Companies, 10% by Sub-threshold AIFMs, 8% by UCITS Management Companies, and only 1% by Regulated UCIs managed by Foreign Fund Managers.
In terms of investment composition, approximately 89.2% of UCITS AUM was allocated to Transferable Securities, 5.5% to UCITSs and UCIs, and 4.2% to bank deposits. As for AIFs, AIFLNPs, and RAIFs, the majority of AUM, 48.3%, was invested in Private Equity, while Hedge Funds represented 9.8% of the AUM. Real Estate investments constituted 9.3% of the AUM, while Investments in Funds of Funds accounted for 9.1% of the total AUM.
Out of a total of 217 UCIs operating, 81% of the AUM is held by 197 UCIs domiciled in Cyprus, with 26.7% of total AUM invested in Cyprus either partially or entirely. These investments amount to €2.8 billion, with 73.6% in Private Equity and 11.1% in Real Estate.
When categorizing unitholders, nearly all UCITS investors (98.9%) are retail investors, while AIFs, AIFNLPs, and RAIFs have 68.1% well-informed investors, 18.8% professional investors, and 13.1% retail investors.
Finally, specific sector investments for UCIs during Q2 2023 were in the Energy sector (4.248% of total AUM, amounting to €456.2 million), Fintech (1.009% of total AUM, totaling €108.4 million), Shipping (5.169% of total AUM, with investments reaching €555.2 million), and Sustainable Investments (0.669% of total AUM, equivalent to €71.9 million).
By fLEXI tEAM