Overview Of The Industry

The latest quarterly report from the Cyprus Securities and Exchange Commission highlights a notable contraction in the number of collective investment management firms. At the end of the second quarter of 2025, a total of 319 management companies were registered, down 2.74% from the 328 firms recorded in the corresponding period of 2024.

Asset Under Management And Performance

Collective investment schemes reported a total managed asset value of €10.6 billion, reflecting a marginal decline of 1.03% compared to the first quarter of 2025. The net asset value currently stands at €9.8 billion, underscoring a steady yet subdued market performance.

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Managerial Composition And Structure

Of the 319 entities, 222 are externally managed, 30 are managed internally, and 67 are operated by external managers. The total cohort comprises 45 DOEEE, another 45 operating below regulatory thresholds, 2 OSEK-controlled management companies, and 5 firms holding dual licenses (DOEEE and OSEK-controlled).

Investment Allocation Breakdown

The distribution of assets reflects a diverse investment strategy. Specifically, 62% of the assets are sourced from DOEEE, 17% derive from a combination of DOEEE and OSEK-managed companies, 11% from solely OSEK-managed firms, 9% from lower-threshold DOEEE, and 1% from OSE under management by non-Cypriot firms. Furthermore, 85.7% of OSEK’s assets are invested in securities, 9.1% in OSEK and OSE shares, and 4.1% in bank deposits.

Further Insights Into Sectoral Allocations

Asset allocation among OEEE, OEEE-PAP, and KOEEE indicates a targeted approach, with 31.6% invested in private equity, 17.8% in real estate, 10.3% in hedging strategies, and the remaining 30.6% spread across other asset classes. The private equity segment itself is diversified into multiple strategies (33.7%), growth capital (31.1%), entrepreneurial investments (16.2%), and mezzanine financing (4.4%). Additionally, other investments are allocated with 38.2% in equity capital, 14.4% in fixed-income securities, 6.6% in cash equivalents, alongside investments in infrastructure (2.9%) and commodities (2%).

Domestic Focus And Investor Demographics

Approximately 73.7% of the assets are managed by 208 Cypriot OSE entities, which include 12 OSEK, 54 OEEE, 40 OEEE-PAP, and 102 KOEEE. Out of 230 active OSE firms, 170 deploy investments partially or wholly in Cyprus, with total investments exceeding €2.75 billion and representing 25.89% of overall assets. Notably, these are predominantly focused on private equity (70.4%) with a significant allocation also in real estate (13.3%). On the investor front, private investors command a staggering 99.1% of OSEK’s base (totaling 8,819 investors), while among the 3,639 investors in OEEE, OEEE-PAP, and KOEEE, 62.9% are well-informed, 25.3% are professional, and 11.8% are private individuals.

Sector Specific Performance

Sector-wise, the assets under management recorded €446.1 million in Energy (4.2%), €106.3 million in Financial Technology (1%), €581.7 million in Shipping (5.47%), and €96.5 million in Sustainable Investments (0.91%) during the second quarter of 2025. These figures underscore a measured yet diverse approach to sectoral investments across the board.