1. The investment funds balance sheet data: assets table

At the end of September 2023, the CBC reported the total assets outstanding for the investment funds industry in Cyprus at 6,550.3 million EUR. This represents a massive 24.6% decrease from the 8,685.7 million EUR total assets reported at the end of June 2023. The latest report represents the lowest total assets number since the end of December 2020. On the other hand, the number of reporting entities continued to grow quarter-over-quarter, reaching an all-time high of 321 – 14 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 the end of the period and the Number of Reporting Entities (line) from the end of March 2011 until the end of September 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 94.96% of the total liabilities. Loans and Other liabilities (incl. financial derivatives) make up the remainder of the total liabilities with 1.5% and 3.54%, respectively.

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 Q3 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 and Other (orange in Fig. 2) both saw the largest decreases in million EUR however, both still dominate over the remaining 3 categories. Only the Mixed (purple in Fig. 2) and Real estate (blue in Fig. 2) saw an increase in their metrics since the previous Q2 2023 report.

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 Q3 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 increases and now stands at 279,3 million EUR. The Open End (red line) decreased substantially by 25.45% and now sits at 6,271.0 million EUR.

Figure 3 – The progress of the total assets/liabilities in EUR million (bars), outstanding at the end of the 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 Q3 2023, the consistent gap between the two categories continues. UCITS recorded its 4^th consecutive increase however, Non-UCISTS took a big hit and fell into the 6s for the first time in over 2 years and currently stands at 6,061.8 million EUR (a 26.10% decrease from the previous quarter.

Conclusion

Despite the significant decrease in total assets reported in the Q3 2023 CBC Investment Funds Statistics report, as SALVUS, we choose to remain optimistic about the long-term growth and success of the investment funds industry in Cyprus.

The establishment of new reporting entities continues to grow which indicates 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 attract new business to the island.

Furthermore, we look forward to continuing to add 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 to learn how we can help set up your investment fund in Cyprus or to learn more about the Cypriot investment services ecosystem.

#StayAhead

Should you be interested to read about relevant topics in 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 – June, 2023
• Cyprus Investment Funds Statistics – March, 2023
• 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.