The number of fund management companies and undertakings of collective investments (UCIs) under the supervision of the Cyprus Securities and Exchange Commission (CySec) rose to 174 in the fourth quarter of 2018 while total assets under management increased to €6.3 billion from €5.7b the previous quarter, Cysec said in a quarterly report.
According to the report, of the 174 entities, 118 companies have operations, marking an increase of 18% compared to the previous quarter. The total number of companies includes, 74 externally managed UCIs, 64 internally managed UCIs and 36 external managers.
The total number of management companies includes 24 AIFMs, 72 sub-threshold AIFMs and 4 UCITS management companies, whereas the total assets under management (AUM) for the 4th quarter of 2018 reached €6.3 billion, recording a 10% increase compared to the 3rd quarter of 2018, the report added.
Approximately 98% of the AUM relate to assets managed by the collective investment scheme sector, while the AUM managed by the sub-threshold AIFMs – closed ended investment companies listed on the CSE amount to only 2% of the total AUM.
As far as UCITS’ investment policy is concerned, 78% of investments are directed to transferable securities, followed by investments in bank deposits with 12%. AIFs and AIFLNPs invest mainly in equity (48%), while the investment in real estate represents 16% of the AUM, the report added.
Regarding the investment policy of sub-threshold AIFMs – closed ended investment companies listed on the CSE, these invest in assets in Real Estate (29%) and in Bank Deposits (28%).
Furthermore, UCIs in Q4 amounted to 104 managing €6.1 billion AUM.
The 71% of this amount, relates to 92 UCIs domiciled in Cyprus (9 UCITS, 27 AIF and 56 AIFLNP). From the total 104 UCIs managed by UCIs management companies, 67 invest in Cyprus partially or entirely and €1.7 billion (28%) are investments made in Cyprus. According to the report 63% of local investments are in private equity, while 16% of investments in Cyprus are in real estate.
Regarding the unit-holders who invest in UCITs these are mainly retail investors (99.5%), while for AIF and AIFNLP, 58% of them are professional investors, 40% well-informed investors and only 2% retail investors, CySec said.