CySEC Reports Q4 2025 Collective Investment Performance with €11.2 Billion in Assets Under Management

CySEC Details Q4 2025 Collective Investment Performance Amid Slight AUM Dip

Nicosia, Cyprus – The Cyprus Securities and Exchange Commission (CySEC) has released its comprehensive statistics for the collective investments sector for the fourth quarter of 2025, offering a detailed snapshot of the island's robust, albeit slightly contracting, fund industry. Published on 8 July 2026, the press release reveals that the total Assets Under Management (AUM) reached €11.2 billion, marking a modest 1.97% decrease compared to the third quarter of 2025.

The announcement underscores the dynamic nature of Cyprus's fund landscape, which continues to position itself as an attractive hub for investment management. During Q4 2025, CySEC supervised 312 Management Companies and Undertakings of Collective Investments (UCIs). This figure represents a slight consolidation from 321 entities supervised during the same period in the previous year, suggesting a period of minor market adjustment or exits within the sector. The total number of entities comprises 217 Externally Managed UCIs, 30 Internally Managed UCIs, and 65 External Fund Managers, highlighting a diverse operational structure.

Drilling down into the management company types, CySEC’s oversight includes 45 Alternative Investment Fund Managers (AIFMs), 45 Sub-threshold AIFMs, 2 UCITS (Undertakings for Collective Investment in Transferable Securities) Management Companies, and 3 entities holding dual AIFM and UCITS licenses. This detailed breakdown indicates a significant focus on alternative investments within the Cypriot market, a strategic area of growth for the jurisdiction.

While the overall AUM experienced a slight dip to €11.2 billion, the Net Asset Value (NAV) of UCIs managed by these companies stood at a substantial €10.1 billion. The decrease in AUM, though small, signals potential market headwinds or normal quarterly fluctuations, and will be closely watched by investors and industry professionals alike. Despite this minor contraction, the sector remains a significant contributor to the Cypriot economy.

A notable aspect of the Q4 2025 data is the distribution of AUM by management type: 62.4% of the AUM was managed by AIFMs, while 17.1% was overseen by entities with dual AIFM and UCITS licenses. UCITS Management Companies accounted for 11.2%, and Sub-threshold AIFMs for 8.7%. A smaller portion (0.6%) was attributed to Regulated UCIs managed by Foreign Fund Managers. This distribution clearly illustrates the dominance of alternative investment strategies within Cyprus's fund sector.

The announcement also provides critical insights into investment strategies. For UCITS, the vast majority (85.2%) of AUM was invested in Transferable Securities, with 12% in other UCITS and UCIs, and 2.6% in bank deposits. This traditional allocation reflects the more conservative and liquid nature of UCITS funds, largely catering to retail investors. Conversely, Alternative Investment Funds (AIFs), AIFs with Limited Number of Persons (AIFLNPs), and Registered Alternative Investment Funds (RAIFs) showed a strong appetite for less liquid assets: 32.8% of their AUM was in Private Equity, and 20.4% in Real Estate. This robust allocation towards private equity and real estate underscores Cyprus's appeal for sophisticated investors seeking exposure to illiquid assets and higher potential returns.

Further granularity in Private Equity investments reveals 37.3% in multi-strategy capital, 33.2% in Growth Capital, 17.7% in venture capital, and 0.7% in mezzanine financing. For the “Other” investment category, equity capital comprised 36.1%, fixed income 13.6%, and cash/cash equivalents 7.1%, with commodities and infrastructure making up smaller percentages.

The report highlights the sector's direct contribution to the local economy: 72.2% of the total AUM is held by 209 UCIs domiciled in Cyprus, including 11 UCITS, 51 AIFs, 40 AIFLNPs, and 107 RAIFs. Crucially, 170 of the 233 operating UCIs invest partially or entirely in Cyprus, with these investments exceeding €2.9 billion – representing 26% of the total AUM. The majority of these local investments are concentrated in Private Equity (70.3%) and Real Estate (12.7%), signifying the fund sector's role in channelling capital into key domestic economic drivers.

Understanding the investor base is also key. For UCITS, retail investors dominate, accounting for 99% of the 8,714 investors. In contrast, AIFs, AIFLNPs, and RAIFs predominantly attract more sophisticated investors: out of 3,775 investors, 64.2% are well-informed, 26.7% are professional, and 9.1% are retail. This distinction reinforces the diverse nature of Cyprus’s fund offerings, catering to both institutional and individual investors.

Finally, the CySEC announcement sheds light on specific sectors attracting significant investment. During Q4 2025, AUM in the Energy sector amounted to €478 million (4.27% of total AUM), Fintech saw €123.2 million (1.1%), Shipping €637.8 million (5.69%), and Sustainable Investments €100.7 million (0.90%). These figures indicate strategic areas of focus and growth within Cyprus's investment landscape, aligning with global trends towards technology, renewable energy, and sustainable finance.

In summary, while the collective investment sector in Cyprus experienced a marginal dip in AUM and a slight reduction in supervised entities during Q4 2025, the underlying statistics paint a picture of resilience and strategic development. The continued dominance of alternative investments, significant local capital deployment, and targeted investments in key sectors like Energy, Fintech, and Shipping underscore the sector's maturity and its crucial role in fostering economic growth and diversification in Cyprus.

This article covers an official CySEC announcement. For more information, corrections or tips, contact report@cyprus-insider.com.