Collective Funds under management dipped 3.9% in Q1

The total value of assets under management (AUM) by Collective Funds declined by 3.9% in the first quarter of 2022 over the previous quarter, while Undertakings of Collective Investments (UCIs) supervised by the Cyprus Securities and Exchange Commission rose.

According to CySEC, in Q1 total assets under management amounted to €11.1 bln, marking a reduction of 3.9% from the previous quarter.

It is the second quarterly decline in AUM following the marginal drop of 0.2% in Q4 2021.

Compared with Q1 2021, assets under management increased 13.5%.

In Q1 2022, CySEC supervised 322 Management Companies and Undertakings of Collective Investments (UCIs), 235 of which have operations.

It supervises 206 Externally Managed UCIs, 44 Internally Managed UCIs and 72 External Fund Managers.

In terms of the investment policy of UCITS, 84.6% were invested in transferable securities, followed by investments in bank deposits with 8.1% and investments in UCITSs and UCIs with 5.8%.

AIFs, AIFLNPs and RAIFs invest mainly in Private Equity with 39.1%, while the investment in Hedge Funds represents 11.4% of the AUM.

Total UCIS in operation were 203, comprising 80.4% of the total AUM, there are 184 UCIs domiciled in Cyprus.

Of the 203 UCIs managed by UCIs Management Companies, 156 invest in Cyprus entirely or partially, reaching €2.5 bln (22.5%).

Of the investments in Cyprus, 66.3% were in Private Equity, while 12.4% were in Real Estate.

Most UCITs are Retail Investors (99.2%), while for AIF, AIFNLP and RAIF, 30.7% are Professional Investors, 57.4% are Well-Informed Investors, and only 11.9% are Retail Investors.

During Q1 2022, AUM in the energy sector totalled €346.2 mln (3.117%), while €28.8 mln was invested in Fintech (0.259%), €82.5 mln in Shipping (0.742%), €36.9 mln, in the sustainability sector (0.332%) and €9 mln in Cryptocurrencies (0.081%).