Marko Janković, the President of the Securities Commission, stated that investment funds have become the fastest-growing segment of Serbia’s financial market in recent years, managing €1.5 billion, with €100 million under the management of alternative investment funds. With the recent amendments to the Law on Alternative Investment Funds, which were passed by the National Assembly, the minimum investment amount for closed alternative funds has been reduced from €50,000 to €10,000, a change that Janković believes will lead to an increase in the number of investors.
Currently, there are 55,000 investors in the overall fund industry. According to Janković, these legal amendments aim to provide a wider group of investors with easier and more accessible entry into the market.
The changes to the Law on Alternative Investment Funds also introduce the term “semi-professional investor” for those who invest at least €5,000 in a single transaction.
Investment funds represent collective saving by multiple investors, with the goal of investing in accordance with a pre-defined investment objective and policy. Alternative investment funds, unlike traditional funds that invest in stocks, bonds, or money market funds, include investments in real estate, commodities, venture capital, and other opportunities.
Janković emphasized that investors can also invest without minimum contribution restrictions in open-ended investment funds with public offerings.
Over the past five or six years, Serbia has worked to establish a legislative framework fully aligned with European regulations. Currently, there are four open alternative investment funds with public offerings, which Janković believes are the most attractive option for citizens, as they provide easy access to segments of the financial market that would otherwise be difficult to invest in independently.
The performance of Serbia’s fund industry in recent years has shown positive returns, gaining the trust of investors, and there has not been a single instance where investors failed to receive their payouts when they chose to withdraw their investment, according to Janković.
The primary benefit for investors is the minimal need to actively manage their investment, as all investment decisions are made by licensed professionals who manage the fund on behalf of its investors. This allows investors to earn passive income without having to manage their portfolios personally.
Janković also emphasized that the Securities Commission supervises the functioning of investment funds in Serbia, organizing education, exams, and licensing for professionals working on the capital market. The Commission ensures that market participants comply with the law and protect the interests of investors.
Investment funds are most prevalent in the United States, the world’s most developed financial market, with alternative investment funds raising money through public or private offerings. They can be established as open or closed-ended funds, depending on whether the members have the right to redeem investment units, shares, or stakes from the fund’s assets upon request.
Janković concluded that, through collaboration between fund managers and the government, Serbia can continue to expand and strengthen its investment fund industry, improving accessibility for a broader group of investors.
