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Cyprus Investment Firms Post 7.5% Growth In Assets Under Management In Q3 2025

Overview Of Q3 2025 Performance

Cyprus investment firms and collective investment schemes reported a 7.5% increase in assets under management (AUM) in the third quarter of 2025, reaching €11.4 billion, according to data from the Cyprus Securities and Exchange Commission (CySEC). The quarter reflected changes in both asset allocation and the structure of regulated entities.

Refined Structure Of Regulated Entities

The number of supervised entities declined to 312 in Q3 2025 from 323 a year earlier. These included 217 externally managed collective investment schemes, 29 internally managed schemes, and 66 managed by external managers. The management company segment consisted of 46 standard management companies, 44 below-threshold firms, two OSEKA management companies, and three entities holding dual licenses.

Asset Allocation And Investment Diversification

The comprehensive AUM now stands at €11.4 billion, while the net asset value is reported at €10.1 billion. A detailed breakdown reveals that 63% of the AUM is attributed to standard funds, 17% is shared between below-threshold funds and OSEKA management companies, 10% to OSEKA managers exclusively, 9% to below-threshold funds, and 1% to collectively supervised entities managed by non-Cypriot firms.

Investment Categories And Sectoral Trends

Within OSEKA schemes, 85.8% of assets were invested in marketable securities, 10.9% in fund shares, and 3.2% in bank deposits. Across alternative investment vehicles, including private equity and real estate funds, allocations included 30.7% in private equity, 17% in real estate, 14.5% in hedge funds, and 9.7% in collective investment fund shares. The remaining category classified as “Other” accounted for 28.1% of allocations, including equity, fixed income, and cash holdings.

Domestic Versus International Exposure

Cyprus-domiciled funds represented 69.7% of total AUM through 205 local entities. Of 230 active schemes, 165 maintained full or partial investments in Cyprus totaling €2.8 billion, equivalent to 24.8% of total AUM. Private equity accounted for 71.1% of domestic investments, while real estate represented 12.8%.

Investor Demographics And Their Strategic Implications

OSEKA schemes were primarily supported by individual investors, who represented 99.2% of participants, totaling 8,727 investors. In alternative investment funds, 64.7% of investors were categorized as well-informed, 26% as professional investors, and 9.4% as private investors.

Sectoral Investment Highlights

Analyzing industry-specific allocations for Q3 2025 demonstrates targeted investments: energy assets reached €471.6 million, maritime investments stood at €581.8 million, fintech allocations totaled €106.9 million, and sustainable investment funds captured €97.9 million. These figures reflect a strategically diversified approach in response to evolving market dynamics.

CySEC data for Q3 2025 reflects continued growth in assets under management alongside ongoing diversification across investment categories and sectors.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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