**Cyprus Investment Funds Assets Decline to €11.2 Billion, Local Investments Reach €2.9 Billion**
The assets under management in Cyprus' collective investment sector have experienced a decrease, falling to €11.2 billion in the fourth quarter of 2025. This decline, reported by the Cyprus Securities and Exchange Commission (CySEC), represents a 1.97 percent drop compared to the previous quarter.
According to CySEC's latest quarterly statistics bulletin, the number of management companies and undertakings of collective investments (UCIs) under its supervision has also seen a reduction, decreasing from 321 entities in the same quarter of 2024 to 312. The current figures include 217 externally managed UCIs, 30 internally managed UCIs, and 65 external fund managers. Among these management companies, there are 45 Alternative Investment Fund Managers (AIFMs), 45 sub-threshold AIFMs, two UCITS management companies, and three entities that hold dual licenses to operate as both AIFMs and UCITS management companies.
The total net asset value (NAV) of the UCIs managed by these firms stands at €10.1 billion. The report indicates that AIFMs oversee a significant portion of the assets, accounting for 62.4 percent, while dual-licensed AIFM and UCITS management companies manage 17.1 percent. UCITS management companies hold 11.2 percent of the assets, with sub-threshold AIFMs managing 8.7 percent and regulated UCIs managed by foreign fund managers accounting for 0.6 percent.
Investment profiles between UCITS and alternative investment funds differ notably. For UCITS, which are typically marketed to retail investors within the European Union, a substantial 85.2 percent of assets are invested in transferable securities. Other allocations include 12 percent in other UCITS and collective investment undertakings, and 2.6 percent in bank deposits. In contrast, alternative investment funds (AIFs) show a strong preference for private equity, which constitutes 32.8 percent of their assets. Real estate investments follow at 20.4 percent, with funds of funds at 10.9 percent and hedge funds at 9.7 percent. The remaining 26.2 percent falls under the broad “other” investment category.
Within the private equity sector, the distribution of investments reveals a diverse strategy: 37.3 percent is allocated to multi-strategy capital, 33.2 percent to growth capital, and 17.7 percent to venture capital, with a small fraction of 0.7 percent directed towards mezzanine financing. In the “other” investment category, equity capital comprises 36.1 percent, followed by fixed income at 13.6 percent and cash and cash equivalents at 7.1 percent. Commodities and infrastructure investments are minimal, accounting for 1.7 percent and 0.1 percent, respectively.
CySEC's report also highlights that a significant portion of the assets, 72.2 percent, is held by 209 UCIs that are domiciled in Cyprus. This includes 11 UCITS, 51 AIFs, 40 AIFLNPs, and 107 RAIFs. Notably, 170 of the 233 UCIs with active operations have invested either partially or entirely in the local economy, with these investments exceeding €2.9 billion, representing 26 percent of the total assets under management.
The investment focus within Cyprus shows a clear trend, with 70.3 percent directed towards private equity and 12.7 percent allocated to real estate. The statistics also shed light on the investor demographics within the sector. Among UCITS, retail investors make up 99 percent, totaling 8,714 investors. In the case of AIFs, AIFLNPs, and RAIFs, there are 3,775 investors, categorized as 64.2 percent well-informed, 26.7 percent professional, and 9.1 percent retail investors.
In terms of sector-specific investments, the energy sector attracted €478 million, representing 4.27 percent of total assets under management. The fintech sector saw investments of €123.2 million, or 1.1 percent of the total. The shipping sector also received notable attention, with €637.8 million, accounting for 5.69 percent of assets under management. Furthermore, sustainable investments totaled €100.7 million, making up 0.90 percent of the overall assets in the sector.
The decline in assets under management and the shifting investment landscape reflect ongoing trends within Cyprus' investment sector, as it continues to adapt to changing market conditions and investor preferences.