articles | 10 September 2020

Assets under Management of Collective Investments up 5.3% in 2nd Quarter of 2020

The value of Total Assets Under Management reached €7.97 billion in the second quarter of 2020, recording a 5.3% increase over the first quarter of the year, but a 3.7% drop compared with the fourth quarter of 2019, according to a quarterly statistical bulletin by the Cyprus Securities and Exchange Commission (CySEC).

CySEC has 238 Management Companies and Undertakings of Collective Investments (UCIs) under its supervision.

From these, 147 companies have operations.

More specifically, it supervises 131 Externally Managed UCIs, 59 Internally Managed UCIs and 48 External Fund Managers.

The total number of Management Companies includes 34 AIFMs, 69 Sub-threshold AIFMs and 4 UCITS Management Companies.

The Total Assets Under Management (AUM) reached €7.97 billion for the second quarter of 2020, recording a 3.7% decrease compared to the fourth quarter of 2019 and 5.3% increase since the first quarter of 2020.

The UCIs managed by the Management Companies had a Net Asset Value (NAV) of €6.3 billion.

Of the AUM, 67.8% are Assets managed by (Alternative Investment Fund Managers (AIFMs), 24.4% by Sub-threshold AIFMs, 4.5% by Undertakings for the Collective Investment in Transferable Securities.

(UCITS) Management Companies, 2% by Cyprus Investment Firms (CIFs) and only 1.3% by Regulated UCIs that are managed by Foreign Fund Managers.

As for the UCITS’s investment policy, they invest heavily in Transferable Securities (81%), followed by investments in Bank Deposits (11%).

Alternative Investment Funds (AIFs), Alternative Investment Fund For Limited Number Of Investors (AIFLNPs) and Registered Alternative Investment Fund (RAIFs) invest mainly in Private Equity (35%), while 14.7% of the AUM are invested in Real Estate.

There are 136 UCIs in total with operations.

Comprising 71% of the total AUM, there are 121 UCIs domiciled in Cyprus (11 UCITS, 38 AIF, 63 AIFLNP and 9 RAIF).

From the total 136 UCIs managed by UCIs Management Companies, 101 invest in Cyprus entirely or partially, with a collective investment of €1.95 billion (25.4%). While, 55% of the investments in Cyprus are in Private Equity, while 13% are in Real Estate.

When it comes to categorising unit-holders, the majority of UCITS are Retail Investors (99.3%), while for AIF, AIFNLP and RAIF, 50.4% are Professional Investors, 40.9% Well-Informed Investors and only 8.7% Retail Investors.

Finally, regarding the specific sectors that UCIs invested in during the second quarter of 2020, the AUM in the Energy sector totalled €111.8 million (1.40% of total AUM), €23.2 million in Fintech (0.29% of total AUM), €10.7 million in Shipping (0.13% of total AUM) and €33.4 million in the area of sustainability (0.42% of total AUM).

Source: In-Cyprus

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