1. The investment funds balance sheet data: assets table

At the end of December 2022, the CBC reported the total assets outstanding for the investment funds industry in Cyprus at 7,758.3 million EUR. This represents a 5.69% decrease from the 8,226.6 million EUR total assets reported at the end of September 2022. Despite the back-to-back decrease in AUM, the number of reporting entities continued to grow quarter-over-quarter, reaching an all-time high of 286.

Figure 1 below, combines the 2 aforementioned data sets with

• the y-axis on the left and the gold bars along the x-axis showing the Total Assets in EUR million, outstanding,
• the y-axis on the right and the red line along the x-axis showing the Number of Reporting Entities, at the end of each period.

Figure 1 – The progress of Total Assets in EUR million (bars), outstanding at end of the period and the Number of Reporting Entities (line) from the end of March 2011 until the end of December 2022.

2. The investment funds balance sheet data: liabilities table

In the next section, the CBC uses 3 segments to categorise the liabilities on the balance sheet of the investment funds in Cyprus:

1. Loans
2. IF (Investment Funds) shares/units
3. Other liabilities (incl. financial derivatives)

IF shares/units continue to dominate through their share of liabilities on the balance sheet of the investment funds, representing 94.78% of the total liabilities. Loans recorded a sharp decrease reporting t 143.1 million EUR (a whopping 73.27% decrease quarter-over-quarter). Other liabilities (incl. financial derivatives) recorded a 25.72% increase and now represent 3.38% of the total liabilities.

3. The investment funds total assets/liabilities, by nature of investment table

The third section of the Investment Funds Statistics report by the CBC for Cyprus in Q4 of 2022 depicts the breakdown by nature of investment of the total assets/liabilities. In particular, the CBC demonstrates the figures through the following categories:

1. Equity
2. Bond
3. Mixed
4. Real Estate
5. Other

During the latest report, the Equity (red in Fig. 2) category was the only category to record an increase quarter-over-quarter and has now established itself as the largest totalling to 40.38% (an 8.74% increase from Q3 2022). The Other category (Orange in Fig. 2) dropped to become the second largest category after recording a 6.9% decrease quarter-over-quarter). Mixed (purple in Fig. 2), Real Estate (blue in Fig. 2), and Bond (green in Fig. 2), follow respectively.

It is important to highlight that Mixed had the largest percentage decline in total assets/liabilities by nature of investment which equated to a 9% drop from the previous quarter.

Figure 2 – The split between the Investment Funds total assets/liabilities by nature of investment as outlined by the Central Bank of Cyprus (CBC) within the Q4 2022 Investment Funds Statistics report.

4. The investment funds total assets/liabilities, by type of investment fund table

The CBC splits between Open End and Closed End fund types.

According to Figure 3, Close End (green line) Investment Funds decreased by 15.27% totalling 274.2 million EUR. Similarly, Open End (red line) funds saw a 5.01% decrease from Q3.

Figure 3 – The progress of the total assets/liabilities in EUR million (bars), outstanding at end of period broken down by type of investment fund.

5. The investment funds total assets/liabilities, UCITS/Non-UCITS breakdown table

The final section the CBC reported on shows the total assets/liabilities for UCITS and Non-UCITS investment funds. For Q4, the consistent gap between the two categories continues. UCITS saw an increase for the first time in a year (6.74%). In contrast, Non-UCISTS experienced a 6.37% decrease during the same period for the second consecutive quarter.

Conclusion

As SALVUS, we find the CBC’s Cypriot Investment Funds Statistics report for Q4 2022 intriguing. Given the adversity of the current economy and the uncertainty that lies ahead with a possible recession, the investment funds industry in Cyprus is managing to attract the establishment of new investment funds despite recording a 5.69% decrease in AUM.

In this regard, the hard work of CySEC (the investment funds regulator in Cyprus) and the work of the dedicated investment fund association (CIFA) in Cyprus, is producing tangible results.

Furthermore, we look forward to continue adding value and positively impacting the investment funds industry by assisting investment funds to obtain authorisations, and comply with regulations within the financial ecosystem in Cyprus and around the globe.

Contact us at info@salvusfunds.com or call us at +357 7000 7898 if you require help setting up your investment fund in Cyprus or would like additional information about the investment services ecosystem.

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Should you be interested to read about relevant topics on the funds sector, feel free to visit our earlier articles:

• AIFMs, UCITs and the Liquidity stress Tests (LST)
• Is it all gloom and doom for hedge funds returns (YTD)?
• The Reasons AIFM, AIF and RAIF come to Cyprus
• The Cypriot AIF: legal forms, types and requirements
• The Cypriot RAIF: substance, requirements and tax
• Cyprus Investment Funds Statistics – September, 2022
• Cyprus Investment Funds Statistics – June, 2022
• Cyprus Investment Funds Statistics – March, 2022
• Cyprus Investment Funds Statistics – December, 2021
• Cyprus Investment Funds Statistics – September, 2021
• Cyprus Investment Funds Statistics – June, 2021
• Cyprus Investment Funds Statistics – March, 2021
• Cyprus Investment Funds Statistics – December, 2020
• Cyprus Investment Funds Statistics – November, 2020
• Cyprus Investment Funds Statistics – August, 2020
• Cyprus Investment Funds Statistics – May, 2020
• Cyprus Investment Funds Statistics – February, 2020

The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.