CySEC Reports on Cyprus' Collective Investments Sector for Q2

<p>According
to the quarterly statistics bulletin released by the Cyprus Securities and
Exchange Commission (CySEC), Cyprus' Collective Investments sector for the
second quarter of 2023 showcased several notable trends.</p><p>CySEC
Supervision Overview: Management Companies and UCIs</p><p>During
this period, CySEC supervised 334 Management Companies and Undertakings of
Collective Investments (UCIs). This number represented a slight decrease of
0.30% from the first quarter of 2023 when there were 335 entities. However,
compared to the same period in the previous year, this indicated a 1.2%
increase, highlighting the sector's gradual growth.</p><p>The
334 entities consisted of 224 Externally Managed UCIs, 37 Internally Managed
UCIs, and 73 External Fund Managers. Within the category of Management
Companies, there were 47 Alternative Investment Fund Managers (AIFMs), 54
Sub-threshold AIFMs, 3 UCITS Management Companies, and 6 dual license entities.
Those served as both AIFMs and UCITS Management Companies.</p><p>For
the second quarter of 2023, the Total Assets Under Management (AUM) in the
Collective Investments sector exceeded €10.7 billion. This reflected a 0.42%
increase compared to the first quarter of 2023 and a 0.87% increase when
compared to the same period in 2022.</p><blockquote><p lang="und" dir="ltr">Δελτίο Τύπου – Στις 334 οι Εταιρείες Διαχείρισης και οι Οργανισμοί Συλλογικών Επενδύσεων<a href="https://t.co/0Txt2oqpGP">https://t.co/0Txt2oqpGP</a>Press Release – 334 Management Companies and Undertakings of Collective Investments (UCIs) under supervision<a href="https://t.co/E20b2FJ2NA">https://t.co/E20b2FJ2NA</a></p>— CySEC (@CySEC_official) <a href="https://twitter.com/CySEC_official/status/1712447893724917767?ref_src=twsrc%5Etfw">October 12, 2023</a></blockquote><p>The
distribution of AUM across various entities showcased that 67% of the AUM were
managed by AIFMs, 14% by AIFMs and UCITS Management Companies, 10% by
Sub-threshold AIFMs, 8% by UCITS Management Companies, and 1% by Regulated UCIs
managed by Foreign Fund Managers.</p><p>Real
Estate and Private Equity: Key Sectors for Investment</p><p>When
it came to investment categories, approximately 89.2% of UCITS Assets under
Management were invested in Transferable Securities, with 5.5% in UCITSs and
UCIs and 4.2% in bank deposits. For AIFs, AIFLNPs, and RAIFs, investments in
Private Equity constituted 48.3% of the AUM, while Hedge Funds represented
9.8%. Investments in Real Estate accounted for 9.3% of AUM, and Investments in
Funds of Funds constituted 9.1%.</p><p>Out
of 217 UCIs with operations, 81% of the total AUM were held by 197 UCIs
domiciled in Cyprus. These included 13 UCITS, 55 AIFs, 51 AIFLNPs, and 78
RAIFs. From this total, 162 UCIs had partial or full investments in Cyprus,
amounting to €2.8 billion or 26.7% of the total AUM. Within this group, 73.6%
of investments in Cyprus were in Private Equity, while 11.1% were allocated to <a href="https://www.financemagnates.com/tag/real-estate/">Real Estate</a>.</p><p>Unitholder
categorization revealed that the majority of UCITS investors were retail
investors (98.9%). For AIFs, AIFNLPs, and RAIFs, 68.1% were well-informed
investors, 18.8% were professional investors, and 13.1% were <a href="https://www.financemagnates.com/tag/retail-investors/">retail investors</a>.</p><p>The
second quarter of 2023 also witnessed specific sector investments, with AUM in
the Energy sector amounting to €456.2 million, representing 4.248% of the total
AUM. <a href="https://www.financemagnates.com/tag/fintech/">Fintech</a>
investments stood at €108.4 million (1.009% of AUM), while Shipping accounted
for €555.2 million (5.169% of AUM). Sustainable Investments totaled €71.9
million, making up 0.669% of the total AUM.</p><p><a href="https://www.financemagnates.com/tag/cysec/">CySEC</a>'s comprehensive
report provides valuable insights into the state of Cyprus' Collective
Investments sector for the second quarter of 2023, reflecting its growth, asset
distribution, and investor characteristics.</p>

This article was written by Tareq Sikder at www.financemagnates.com.