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CySEC Investment Managers’ AUM Drops 7.2% to €9.9 Billion in Q3 2022

by Solomon Oladipupo
  • CySEC attributed the decrease to devaluation of assets and other factors.
  • Investment managers regulated by CySEC increased to 303 during Q3 2022.
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The assets under management (AUM) of investment management firms supervised by the Cyprus Securities and Exchange Commission (CySEC) reached €9.9 billion during Q3 2022. This represents a decrease of 7.2% and 14.7% when compared to the firm’s performance during Q2 2022 and Q3 2021, respectively.

“The decrease in the value of investments is mainly due to devaluation of assets, redemptions of investment shares and asset disposals,” CySEC explained in a statement released on Monday, adding that “the undesirable events and unforeseen circumstances of the last couple of years” made it impossible for Undertakings of Collective Investments (UCIs) firms not to be affected.

CySEC Breaks Down the AUM

According to CySEC , the net value of all investment funds during the quarter came in at €8.9 billion. These funds were invested in energy, fintech, shipping, sustainable investments, cryptocurrency sectors and others.

Giving a breakdown of the assets, the Cypriot watchdog noted that €386.4 million or 3.913% of the AUM was invested in the energy sector, €3.1 million or 0.031% in fintech , €117.7 million or 1.191% in shipping, €42.9 million or 0.434% in sustainable investments and €4.5 million or 0.046% in digital assets.

Furthermore, CySEC noted that a total of 208 UCIs or investment funds were active during the quarter. The supervisor added that 188 of these funds, which account for 85% of the total AUM, were domiciled in Cyprus.

“From the total 208 UCIs, 166 invest in Cyprus partially or entirely and these investments amount to €2.4 billion or 23.8% of the total Assets Under Management. The 69.3% of the investments in Cyprus are in Private Equity, while the 12.4% are in Real Estate,” CySEC explained.

CySEC’s Investment Management Firms Increase to 333

Meanwhile, CySEC noted that the total number of management companies and UCIs increased to 333, which is up from 330 during the prior quarter. However, compared to Q3 2021, the number represents a bigger increase of 11.74%.

Of the 333 supervised management firms and UCIs, 242 are operational, CySEC said, adding that 212 of the firms are externally managed UCIs, 43 internally managed UCIs and 78 are external fund managers.

Furthermore, the regulator noted that the firms are comprised of 46 alternative investment fund managers (AIFMs), 65 sub-threshold AIFMs, four Undertakings for Collective Investment in Transferable Securities (UCITS) management firms and six other companies which hold both the AIFM and UCITS licenses.

Moreover, CySEC noted that the majority (62%) of assets during the quarter were overseen by alternative investment fund managers. Other categories of firms make up the rest: 12% by sub-threshold AIFMs, 17% by firms holding dual licenses, 8% by the UCITS managers and only 1% by regulated UCIs overseen by foreign fund managers.

The assets under management (AUM) of investment management firms supervised by the Cyprus Securities and Exchange Commission (CySEC) reached €9.9 billion during Q3 2022. This represents a decrease of 7.2% and 14.7% when compared to the firm’s performance during Q2 2022 and Q3 2021, respectively.

“The decrease in the value of investments is mainly due to devaluation of assets, redemptions of investment shares and asset disposals,” CySEC explained in a statement released on Monday, adding that “the undesirable events and unforeseen circumstances of the last couple of years” made it impossible for Undertakings of Collective Investments (UCIs) firms not to be affected.

CySEC Breaks Down the AUM

According to CySEC , the net value of all investment funds during the quarter came in at €8.9 billion. These funds were invested in energy, fintech, shipping, sustainable investments, cryptocurrency sectors and others.

Giving a breakdown of the assets, the Cypriot watchdog noted that €386.4 million or 3.913% of the AUM was invested in the energy sector, €3.1 million or 0.031% in fintech , €117.7 million or 1.191% in shipping, €42.9 million or 0.434% in sustainable investments and €4.5 million or 0.046% in digital assets.

Furthermore, CySEC noted that a total of 208 UCIs or investment funds were active during the quarter. The supervisor added that 188 of these funds, which account for 85% of the total AUM, were domiciled in Cyprus.

“From the total 208 UCIs, 166 invest in Cyprus partially or entirely and these investments amount to €2.4 billion or 23.8% of the total Assets Under Management. The 69.3% of the investments in Cyprus are in Private Equity, while the 12.4% are in Real Estate,” CySEC explained.

CySEC’s Investment Management Firms Increase to 333

Meanwhile, CySEC noted that the total number of management companies and UCIs increased to 333, which is up from 330 during the prior quarter. However, compared to Q3 2021, the number represents a bigger increase of 11.74%.

Of the 333 supervised management firms and UCIs, 242 are operational, CySEC said, adding that 212 of the firms are externally managed UCIs, 43 internally managed UCIs and 78 are external fund managers.

Furthermore, the regulator noted that the firms are comprised of 46 alternative investment fund managers (AIFMs), 65 sub-threshold AIFMs, four Undertakings for Collective Investment in Transferable Securities (UCITS) management firms and six other companies which hold both the AIFM and UCITS licenses.

Moreover, CySEC noted that the majority (62%) of assets during the quarter were overseen by alternative investment fund managers. Other categories of firms make up the rest: 12% by sub-threshold AIFMs, 17% by firms holding dual licenses, 8% by the UCITS managers and only 1% by regulated UCIs overseen by foreign fund managers.

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