Alternative Investment

CySEC Investment Managers’ AUM Drops 7.2% in Q3

The asset under management (AUM) of investment management firms
supervised by the Cyprus Securities and Exchange Commission (CySEC) reached €9.9
billion during the third quarter (Q3) of 2022. This represents 7.2% and 14.7%
decreases when compared to the firm’s performance during Q2 2022 and Q3 2021.

“The decrease in the value of investments is mainly due to
devaluation of assets, redemptions of investment shares and asset disposals,”
CySEC explained in a statement released on Monday, adding
that “the undesirable events and unforeseen circumstances of the last couple of
years” made it impossible for Undertakings of Collective Investments (UCIs) firms not to be affected.

According to CySEC , the net value of all investment funds during the
quarter came in at €8.9 billion. These funds were invested in the energy,
fintech, shipping, sustainable investments and cryptocurrency sectors, among others.

Giving a breakdown of the assets, the Cypriot watchdog noted that €386.4
million or 3.913% of the AUM was invested in the energy sector, €3.1
million or 0.031% in fintech , €117.7 million or 1.191% in shipping, €42.9
million or 0.434% in sustainable investments and €4.5 million or 0.046% in
digital assets.

Furthermore, CySEC noted that a total of 208 UCIs or investment funds
were active during the quarter. The supervisor added that 188 of these funds, which accounts for 85% of
the total AUM, were domiciled in Cyprus.

“From the total 208 UCIs, 166 invest in Cyprus partially or entirely and
these investments amount to €2.4 billion or 23.8% of the total Assets Under
Management. The 69.3% of the investments in Cyprus are in Private Equity, while the
12.4% are in Real Estate,” CySEC explained.

CySEC’s Investment Management Firms Increase to 333

Meanwhile, CySEC noted that the total number of management companies and UCIs increased to 333, which is up from 330
during the prior quarter. However, compared Q3 2021, the
number represents a bigger 11.74% increase.

Of the 333 supervised management firms and UCIs, 242 are operational,
CySEC said, adding that 212 of the firms are externally
managed UCIs, 43 internally managed UCIs and 78 are external fund managers.

Furthermore, the regulator noted that the firms comprise: 46
alternative investment fund managers (AIFMs), 65 sub-threshold AIFMs, four
Undertakings for Collective Investment in Transferable Securities (UCITS)
management firms and six other companies which hold both the AIFM and UCITS licenses.

Moreover, CySEC noted that the majority (62%) of assets during the quarter were overseen by alternative investment fund managers. Other categories of firms make up the rest: 12% by sub-threshold AIFMs, 17% by firms
holding dual licenses, 8% by the UCITS managers and only 1% by regulated UCIs
overseen by foreign fund managers.

The asset under management (AUM) of investment management firms
supervised by the Cyprus Securities and Exchange Commission (CySEC) reached €9.9
billion during the third quarter (Q3) of 2022. This represents 7.2% and 14.7%
decreases when compared to the firm’s performance during Q2 2022 and Q3 2021.

“The decrease in the value of investments is mainly due to
devaluation of assets, redemptions of investment shares and asset disposals,”
CySEC explained in a statement released on Monday, adding
that “the undesirable events and unforeseen circumstances of the last couple of
years” made it impossible for Undertakings of Collective Investments (UCIs) firms not to be affected.

According to CySEC , the net value of all investment funds during the
quarter came in at €8.9 billion. These funds were invested in the energy,
fintech, shipping, sustainable investments and cryptocurrency sectors, among others.

Giving a breakdown of the assets, the Cypriot watchdog noted that €386.4
million or 3.913% of the AUM was invested in the energy sector, €3.1
million or 0.031% in fintech , €117.7 million or 1.191% in shipping, €42.9
million or 0.434% in sustainable investments and €4.5 million or 0.046% in
digital assets.

Furthermore, CySEC noted that a total of 208 UCIs or investment funds
were active during the quarter. The supervisor added that 188 of these funds, which accounts for 85% of
the total AUM, were domiciled in Cyprus.

“From the total 208 UCIs, 166 invest in Cyprus partially or entirely and
these investments amount to €2.4 billion or 23.8% of the total Assets Under
Management. The 69.3% of the investments in Cyprus are in Private Equity, while the
12.4% are in Real Estate,” CySEC explained.

CySEC’s Investment Management Firms Increase to 333

Meanwhile, CySEC noted that the total number of management companies and UCIs increased to 333, which is up from 330
during the prior quarter. However, compared Q3 2021, the
number represents a bigger 11.74% increase.

Of the 333 supervised management firms and UCIs, 242 are operational,
CySEC said, adding that 212 of the firms are externally
managed UCIs, 43 internally managed UCIs and 78 are external fund managers.

Furthermore, the regulator noted that the firms comprise: 46
alternative investment fund managers (AIFMs), 65 sub-threshold AIFMs, four
Undertakings for Collective Investment in Transferable Securities (UCITS)
management firms and six other companies which hold both the AIFM and UCITS licenses.

Moreover, CySEC noted that the majority (62%) of assets during the quarter were overseen by alternative investment fund managers. Other categories of firms make up the rest: 12% by sub-threshold AIFMs, 17% by firms
holding dual licenses, 8% by the UCITS managers and only 1% by regulated UCIs
overseen by foreign fund managers.

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