Cyprus Investment Funds Statistics – September 2024

By SALVUS Team Articles AIF, AIFM, CBC, Central Bank of Cyprus, Cyprus Investment Funds, CySEC, EFAMA, ESMA, Fund managers, Investment Funds, Investment funds set up, Investment funds statistics, UCITS

On the 19^th of November 2024, the Statistics Department at the Central Bank of Cyprus (CBC) released the latest statistics update concerning the investment funds industry in Cyprus. The CBC’s investment funds statistics report covers the third quarter (Q3) of 2024.

The SALVUS Investment Funds Licensing team regularly publishes an article such as this one to demonstrate the Cypriot investment funds statistics for the previous quarter in a digestible manner. Throughout the summary, our team highlights the key trends within the sector.

As active members of the Cyprus Investment Funds Association (CIFA) Statistics and Fund Research Committee, along the Cyprus Securities and Exchange Commission (CySEC), the CBC, and the Cyprus Stock Exchange (CSE), we participate in the collection, preparation, and submission of comprehensive statistical data on the investment funds industry in Cyprus, reporting to the European Securities and Markets Authority (ESMA) and European Fund and Asset Management Association (EFAMA).

Throughout this article, our Investment Funds Licensing team presents the statistics in more depth through the sections below:

1. Investment Funds balance sheet data: assets,
2. Investment Funds balance sheet: liabilities,
3. Investment Funds total assets/liabilities, by nature of investment,
4. Investment Funds total assets/liabilities, by type of investment fund,
5. Investment Funds total assets/liabilities, UCITS/Non-UCITS breakdown.
6.Alternative Investment Funds (AIF) net assets, by nature of investment.

We regularly share bite-sized insights on LinkedIn such as those found in this article

1. The investment funds balance sheet data: assets table

At the end of September 2024, the CBC reported the total assets outstanding for the investment funds industry in Cyprus at 6,795.7 million EUR. This represents a 0.77% decrease from the 6,848.7 million EUR total assets reported at the end of June 2024. The latest report represents the first minor decrease since the end of September 2023, after consecutive increases. Additionally, the number of reporting entities increased quarter-over-quarter, reaching a total of 334 reporting entities – 4 more than previously reported at the end of June 2024.

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 June 2011 until the end of September 2024.

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:

Loans
IF (Investment Funds) shares/units
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 96.95% of the total liabilities. Loans and Other liabilities (incl. financial derivatives) make up the remainder of the total liabilities with 1.15% and 1.90%, 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 2024 depicts the breakdown by nature of investment of the total assets/liabilities. In particular, the CBC demonstrates the figures through the following categories:

Equity
Bond
Mixed
Real Estate
Other

All categories saw a decrease in million EUR, except Equity and Real Estate, which were increased by 2.99% and 0.61% respectively. Among the five categories, Other (orange in Fig 2) and Mixed Investments (purple in Fig. 2) experienced the largest quarter-over-quarter decreases in value, at 7.23% and 2.13% respectively.

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 2024 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, Open End (red line) Investment Funds recorded a slight decrease of 0.84% in valuation quarter-over-quarter and now stands at 6,484.9 million EUR. The Close End (green line) increased opposed to last quarter’s decrease and now sits at 310.8 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

This section of the CBC reports the total assets/liabilities for UCITS and Non-UCITS investment funds. For Q3 2024, the consistent gap between the two categories continues. UCITS recorded its 8^th consecutive increase, while Non-UCITS slightly decreased and currently stands at 6,163.6 million EUR.

6. The alternative investment funds net assets, by nature of investment data

In respect to the data reported to EFAMA this section depicts the breakdown by nature of investment of the net assets of AIF including Registered AIF in Q3 2024 compared to Q2 2024 (Fig 4). In particular, the figures are demonstrated through the following categories:

Equity
Bond
Mixed
Real Estate
Other

All categories saw a decrease in million EUR compared to the second quarter of 2024, except the category of Real Estate which remained the same compared to the second quarter, and the category of Other which saw a slight increase of 0.95% and currently stands at 2761 million EUR. Among the five categories, Equity, Bond and Mixed experienced a quarter-over-quarter decrease in value, at 5.37%, 4.29% and 2.22% respectively. Other Investments steadily occupy the largest portion of AIF net assets.

Figure 4 – The split between the AIF net assets, by nature of investment as reported to the European Fund and Asset Management Association (EFAMA) by the end of the second (light gold bar) and third (dark gold bar) quarters of 2024.

Conclusion

As SALVUS, we are pleased with the CBC’s Cypriot Investment Funds Statistics report and the data reported to EFAMA for Q3 2024. Despite the challenging economic conditions and the looming threat of a potential recession, the investment funds industry in Cyprus continues to draw the formation of new funds, demonstrating resilience. This quarter marked a slight decrease compared to last quarter in assets under management (AUM).

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 Cyprus.

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 to learn how we can help set up your investment fund in Cyprus or to learn more about the Cypriot investment services ecosystem.

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

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

Cyprus Investment Funds Statistics – September 2024