1. The investment funds balance sheet data: assets table

At the end of September 2022, the CBC reported the total assets outstanding for the investment funds industry in Cyprus at 8,226.6 million EUR. This represents a 5.48% decrease on the 8,704 million EUR total assets reported at the end of June 2022. Despite the decrease in AUM, the number of reporting entities grew by 10 quarter-over-quarter, reaching an all-time high of 284.

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 September 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 90.96% of the total liabilities. Loans continued their decline quarter-over-quarter, coming down to 535.6 million EUR – a 13.15% decrease from the second quarter (Q2). The most noticeable change once again comes through Other liabilities (incl. financial derivatives), where the segment recorded a 21.09% decrease quarter-over-quarter, bringing the total value down to 208.5 million EUR from 264.2 million EUR previously recorded in Q2.

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 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 Mixed category was the only category to record an increase quarter-over-quarter. Furthermore, the Other category (orange in Fig. 2), continues to maintain its spot as the largest category totalling 3,228.9 million EUR (a 6.9% decrease from Q2 2022). The Equity category (red in Fig. 2) maintains its position behind Other as the second largest category followed by Mixed (purple in Fig. 2), Real Estate (blue in Fig. 2), and Bond (green in Fig. 2), respectively.

It is important to highlight that Real Estate had the largest percentage decline in total assets/liabilities by nature of investment which equated to an 8.9% 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 within the Q3 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 increased by 2.21% totalling 322.3 million EUR. In contrast, Open End (red line) saw a 5.77% decrease from Q2.

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 Q3, the consistent gap between the two categories continues. UCITS saw a 2.64% decrease from the previous quarter. Similarly, Non-UCISTS experienced a 5.63% decrease during the same period. Non-UCITS now stand at 7,803.5 million EUR, the lowest value in a year.

Conclusion

As SALVUS, we find the CBC’s Cypriot Investment Funds Statistics report for Q3 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 5.48% 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, are producing tangible results.

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.

Please contact us 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 – 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.