Assets under management of Collective Investment Organizations (investment funds) in Cyprus showed a 20% quarterly decrease in the third quarter of 2023, primarily attributed to the liquidation of units in two investment funds.

According to data released by the Cyprus Securities and Exchange Commission (CySEC), total assets under management (AUM) fell to €8.61 billion, down from €10.74 billion in the previous quarter, a 19.8% decrease. Compared to the same quarter in 2022, the reduction is 12.8%.

"The decrease in Assets Under Management is mainly due to the liquidation of units in two investment funds," notes CySEC, adding that the total net asset value was €8 billion.

Simultaneously, 76% of the Assets Under Management is held by 198 Cypriot Collective Investment Organizations (13 UCITS, 54 AIFs, 49 RAIFs, and 82 EIFs).

Additionally, of the total 217 Collective Investment Organizations with activities, 156 invest partially or wholly in Cyprus, with this investment amounting to €2.3 billion or 27% of the total Assets Under Management.

65.1% of investments in Cyprus are in Private Equity, while Real Estate investments constitute 14.4%.

Furthermore, in the categorization of investors in Collective Investment Organizations in Transferable Securities, it is noted that the overwhelming majority are individual investors (99.2%). Regarding Alternative Investment Funds (AIFs), Registered Alternative Investment Funds (RAIFs), and European Investment Funds (EIFs), 68.1% of the total investors are adequately informed, 20% are professional investors, and just 12.7% are individual investors.

Regarding the investments of Collective Investment Organizations in specific sectors during the third quarter of 2023, the Assets Under Management in the Energy sector amounted to €536 million (6.221% of the total AUM), in the Fintech sector to €194.2 million (2.254% of the total AUM), in Shipping to €605 million (7.022% of the total AUM), and in Sustainable Investments to €77.9 million (0.904% of the total AUM).

According to the data, in the third quarter of 2023, CySEC supervised a total of 335 Collective Investment Management Companies and Collective Investment Organizations (CIOs), compared to 334 in the second quarter of 2023 and 333 in the same period in 2022, recording a marginal increase of 0.30% and 0.60%, respectively.

Of these 335 entities, 225 were Externally Managed CIOs, 36 Internally Managed CIOs, and 74 External Managers. The total number of Management Companies includes 47 AIFMs, 53 Below-threshold AIFMs, 3 UCITS Management Companies, and 6 Dual-license firms (AIFMs and UCITS Management Companies).