Assets under management of collective investment firms registered in Cyprus amounted to €9.4 billion, reflecting a 2.9% increase over the last quarter, despite a 12.8% decline compared to the same period last year.

According to the "Management Companies and Undertakings of Collective Investments" statistical bulletin, issued by the Cyprus Securities and Exchange Commission (CySEC), in the second quarter of this year, the number of Management Companies and Undertakings of Collective Investments (UCIs) stood at 328, remaining unchanged for the third consecutive quarter.

Of these, 250 entities are actively operational. This includes 226 externally managed UCIs, 33 internally managed UCIs, and 69 external fund managers. The total number of management companies includes 44 Alternative Investment Fund Managers (AIFMs), 50 sub-threshold AIFMs, 3 UCITS management companies, and 5 dual-licensed entities (AIFMs and UCITS management companies).

Total Assets for the second quarter of 2024 reached €9.4 billion, a 2.88% increase since the first quarter, with UCIs managed by these companies having a Net Asset Value (NAV) of €8.9 billion. Of the AUM, 59% is managed by AIFMs, 18% by dual-licensed AIFMs and UCITS management companies, 11% by sub-threshold AIFMs, 11% by UCITS management companies, and 1% by regulated UCIs managed by foreign fund managers.

CySEC reports that UCITS invest primarily in transferable securities (89.3%), followed by UCITS and other UCIs (7%), and bank deposits (2.6%). AIFs, AIFLNPs, and RAIFs allocate their investments mainly in private equity (32.2%), hedge funds (13.2%), and real estate (11.7%), while funds of funds represent 11.3% of the AUM.

There are 225 operational UCIs in total, with 74.1% of the total AUM linked to 198 UCIs domiciled in Cyprus. These include 13 UCITS, 49 AIFs, 45 AIFLNPs, and 91 RAIFs. Out of the 225 operational UCIs, 162 invest in Cyprus either entirely or partially, amounting to €2.5 billion (26.6% of total AUM). Of the investments in Cyprus, 68.5% is in private equity, while 12.8% is allocated to real estate.

Regarding the categorization of unit holders, UCITS primarily attract retail investors (99.1%), whereas 68.8% of investors in AIFs, AIFLNPs, and RAIFs are well-informed investors, 18.8% are professional investors, and 12.4% are retail investors.