Investment Management Landscape In Q2 2025: Declining Firms And Stable Asset Performance

by THEFUTURE.TEAM

October 19, 2025

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.

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Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

July 29, 2026

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.

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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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