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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.

EU Services Production Grows As Information And Communication Lead

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

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