Despite all we have been through in 2020, it seems like things are not as bad as many feared they would be — at least in so far as the Cypriot economy is concerned.
Total Assets Under Management
According to the quarterly statistical bulletin of the Cyprus Securities and Exchange Commission (CySEC), the country’s total Assets Under Management (AUM) in the second quarter of 2020 reached €7.97 billion. That represents a 5.3% increase compared to the previous quarter — undoubtedly a good sign in the current climate. Unfortunately, however, that still leaves us with a 3.7% drop compared to the last quarter of 2019.
Other Key Stats
Management Companies and Undertakings of Collective Interest
According to the bulletin, 238 Management Companies and Undertakings of Collective Interest (UCIs) are currently being supervised by CySEC, including:
- 131 Externally Managed UCIs
- 59 Internally Managed UCIs
- 48 External Fund Managers
- 34 Alternative Investment Fund Managers (AIFMs)
- 69 Sub-Threshold AIFMs
- 4 UCITS Management Companies
Furthermore, 147 companies and 136 UCIs have operations in the country. The UCIs had a Net Asset Value (NAV) of €6.3 billion.
Assets Under Management
As far as the AUM are concerned:
- 67.8% are managed by AIFMs
- 24.4% are managed by Sub-Threshold AIFMs
- 4.5% are managed by UCITS Management Companies
- 2% are managed by CIFs
- 1.3% are managed by Regulated UCIs that are in turn managed by Foreign Fund Managers
71% of the total AUM are 121 UCIs domiciled in Cyprus, including:
- 38 AIF
- 9 RAIF
- 11 UCITS
- 63 AIFLNP
Next, let’s take a look at investment policies.
- 81% of UCITS invest in transferable securities
- 11% of UCITS invest in bank deposits
- 35% of AIFs, AIFLNPs, and RAIFs invest mainly in private equity
- 14.7% of the AUM are invested in real estate
101 of the total 136 UCIs managed by UCIs Management Companies invest in Cyprus either entirely or partially, amounting to a collective investment of €1.95 billion (25.4%).
55% of the investments in the country are in private equity, and 13% — in real estate.
A whopping 99.3% of UCITS are retail investors. 50.4% of all AIF, AIFNLP, and RAIF are professional investors, 40.9% are well-informed investors, and only are 8.7% retail investors.
During the second quarter of 2020, UCIs invested:
- €111.8 million or 1.4% of the total AUM in the energy sector
- €23.2 million or 0.29% of the total AUM in fintech
- €10.7 million or 0.13% of the total AUM in shipping
- €33.4 million or 0.42% of the total AUM in sustainability
While both the Cypriot and the global economy still have a long way to recovery ahead, the latest figures bode well for the future. As long as the COVID-19 pandemic does not spiral out of control, the market should be able to pull itself by its bootstraps and revert to the 2019 levels.
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