CySEC reports a 7.2% drop in Investment managers’ AUM in Q3 2022
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The Cyprus Securities and Exchange Commission (CySEC) reported assets under management for investment managers of €9.9 billion during the third quarter of 2022. The figure was 7.2% lower than what was reported in Q2 2022 and 14.7% lower than what was reported in Q3 2021.
CySEC reports drop in Investment managers’ AUM
The CySEC released a statement on Monday showing that the drop in the value of investments was likely attributed to asset devaluation, asset disposals, and redemptions in investment shares.
The regulatory body also noted that the past few years had reported negative events and unforeseen market conditions that affected Undertakings of Collective Investments (UCIs).
In the Q3 2022 financial results, CySEC reported that the net value of all investment funds during the quarter was €8.9 billion. The funds went towards investments in multiple areas such as energy, shipping, cryptocurrency, sustainable investment, and fintech, among others. The energy sector took the largest share, with 3.913% of the total AUM going toward the sector. It was followed by shipping, which accounted for 1.191% of the total AUM.
During the quarter, there were 208 active investment funds. The regulator added that out of this number, 188 of the funds accounted for 85% of the total AUM and were based in Cyprus. 69.3% of the investments that were made in Cyprus went toward private equity, while 12.4% went toward real estate.
CySEC reports growth in UCIs and management companies
The CySEC also reported a significant increase in management companies and UCIs. The regulator noted that these firms increased to 333 during the quarter compared to the 330 reported during the previous quarter. However, compared to Q3 2021, the number of new firms increased by 11.74%.
Of the 333 UCIs and supervised management companies, 242 were still operational, according to CySEC. The regulatory body added that 212 of these companies were UCIs managed externally, while 43 were managed internally. Additionally, 78 of the UCIs were external fund managers.
The regulator further added that the investment firms in the country are comprised of 46 alternative investment fund managers (AIFMS) and 65 sub-threshold AIFMS. There were also four Undertakings for Collective Investment in Transferable Securities (UCITS) management firms and six other firms that held AIFM and UCITS licenses.
The report by the CySEC also noted that AIFMS managed 62% of the assets reported during the third quarter of 2022. The other fund categories that managed these assets include sub-threshold AIMs, which accounted for 12%, and UCITS managers, which accounted for 8%. 17% of assets were managed by companies holding dual licenses.