1. The investment funds balance sheet data: assets table

At the end of March 2023, the CBC reported the total assets outstanding for the investment funds industry in Cyprus at 8,303.4 million EUR. This represents a 7.03% increase from the 7,758.3 million EUR total assets reported at the end of December 2022. This is the first increase in AUM since reported in June 2022. Additionally, the number of reporting entities continued to grow quarter-over-quarter, reaching an all-time high of 290 – 4 more reporting entities than the previous quarter.

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 March 2023.

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 have continuously dominated the liabilities of Cypriot investment funds and it is no different this time around either. IF shares/units contribute to 95.68% of the total liabilities (an 8.05% increase from the previous quarter). Loans managed to stabilize from their sharp decrease recorded in the previous quarter to now reporting a slight increase of 4.38% and sitting at 149.4 million EUR – making up only 1.8% of the total liabilities. Other liabilities (incl. financial derivatives) recorded a 20.29% decrease and now only represent 2.52% 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 Q1 of 2023 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

The Equity (red in Fig. 2) category saw the largest increase (14.04%) quarter-over-quarter. The Other category (Orange in Fig. 2) is firmly the second largest category of total assets/liabilities by nature of investment making up 32.92%. 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 Real Estate was the only category to record a decrease (0.27%) quarter-over-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 Q1 2023 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 recorded back-to-back decreases and now stands at 262.8 million EUR. In contrast, Open End (red line) increased and surpassed the 8,000 million EUR mark for the first time since June 2022 – a 7.44% increase from the previous quarter (Q4 2022).

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 of the CBC reports the total assets/liabilities for UCITS and Non-UCITS investment funds. For Q1 2023, the consistent gap between the two categories continues. UCITS saw back-to-back increases, and Non-UCISTS experienced a 7.14% increase totaling to 474.8 million EUR and 7,828.6 million EUR, respectively.

Conclusion

As SALVUS, we continue to find the CBC’s Cypriot Investment Funds Statistics report for Q1 2023 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 whilst proving to be resilient and recording a 7.03% increase 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 helping produce 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 – December, 2022
• 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.