Management Companies and Undertakings of Collective Investments under supervision remained 328 during the first quarter of the year, according to the Cyprus Securities and Exchange Commission.

In a press release, CySEC reported that assets under management (AUM) of collective investments for the first quarter of 2024 reached €9.1 billion, marking an increase of 6.5% compared to the previous quarter, but a decrease of 14.89% compared to the same period last year.

Based on the quarterly statistics bulletin for the first quarter of 2024 issued by CySEC, which presents key data for the collective investments sector in Cyprus, CySEC supervises 328 Management Companies and Undertakings of Collective Investments (UCIs). This is a slight decrease from 335 entities during the same period the previous year, representing a drop of 2.09%.

The total number of 328 entities includes 226 Externally Managed UCIs, 33 Internally Managed UCIs, and 69 External Fund Managers. The number of Management Companies comprises 42 AIFMs, 51 Sub-threshold AIFMs, 3 UCITS Management Companies, and 6 dual-license entities (AIFMs and UCITS Management Companies).

Data for the first quarter of 2024 shows that total AUM reached €9.1 billion, an increase of 6.35% since the fourth quarter of 2023. However, compared to the same period in 2023, the total AUM decreased by 14.89%. Furthermore, UCIs managed by Management Companies had a Net Asset Value (NAV) of €8.6 billion.

The press release indicates that 59% of the AUM is managed by AIFMs, 18% by 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.

Regarding the investment distribution, 90.6% of UCITS’ assets were invested in transferable securities, 6.9% in UCITS and other UCIs, and 1.4% in bank deposits. For AIFs, AIFLNPs, and RAIFs, 32.6% of the AUM was invested in private equity, while real estate investments represented 17.3% of the AUM.

Investments in hedge funds accounted for 12.2%, while investments in funds of funds constituted 11.1% of the total AUM.

The report also notes that there are 224 UCIs in operation. Of these, 75% of the total AUM is held by 199 UCIs domiciled in Cyprus (13 UCITS, 52 AIFs, 46 AIFLNPs, and 88 RAIFs). Out of the 224 UCIs, 161 invest partially or entirely in Cyprus, with these investments amounting to €2.4 billion, or 26.8% of the total AUM. Of the investments in Cyprus, 65.7% are in private equity, while 13.5% are in real estate.

Regarding the categorization of unitholders, the vast majority of UCITS are retail investors (99.2%). For AIFs, AIFLNPs, and RAIFs, 67.8% are well-informed investors, 19.8% are professional investors, and 12.4% are retail investors.

In terms of specific sectors, during the first quarter of 2024, AUM in the energy sector amounted to €533.3 million (5.858% of total AUM), €220.4 million was invested in fintech (2.421% of total AUM), €657.9 million in shipping (7.226% of total AUM), and €95.1 million in sustainable investments (1.044% of total AUM), the press release concludes.