The investment market in Serbia is undergoing a transformation, with alternative investment funds attracting increasing attention from domestic investors
In this interview for CorD, Stanislava Petković, General Director of Vista Rica, shares her insights on the growing popularity of alternative funds, the changing mindset of investors, and the importance of education in fostering an investment culture.
Alternative investment funds are increasingly appealing to domestic investors. What is driving this growing trend?
— Alternative funds have a regulatory foundation that allows them to invest in a broader spectrum of assets with higher return potential, including real estate and ETFs. In addition to traditional instruments such as stocks and bonds, this provides investors with access to asset classes that are typically less available, particularly to private individuals. This is one of the key reasons why investors are opting for alternative funds.
How is the perception of investment changing among domestic investors?
— When making investment decisions, investors weigh their risk tolerance against their expected returns. Perception is primarily shifting due to transparent and professional asset management, along with a clear assessment of both the benefi ts and risks of investing. That is why our experienced team places the utmost importance on maintaining a diversifi ed portfolio and managing risk exposure.
Which sectors of the economy do you see as the most promising for investment in Serbia?
— The alternative funds market is expanding, with assets under management in open AIF funds rising from €56 million in 2023 to over €134 million in 2024. The local market is characterised by a low volume of fi nancial instrument trading. However, with the capital market development strategy, we anticipate an expansion in the range of fi nancial products, particularly through the issuance of corporate bonds—one of the key mechanisms for linking businesses with investors. Technological startups and traditional real estate investments remain the most promising sectors of interest.
What level of interest do businesses have in investing in investment funds?
— Businesses and legal entities have limited opportunities for investing in the capital market. Recognising the need for additional investment options, we established the Vista Rica Corporate open alternative investment fund, the fi rst fund designed exclusively for legal entities. By investing through modern alternative investment funds, and in line with a medium- to long-term investment approach, companies benefi t from diversifi cation, risk dispersion, and fl exible terms regarding investment amounts, duration, and fund withdrawals. In 2024, the fund achieved a 2.8% increase in investment unit value, meeting investor expectations and laying the foundation for further fund expansion.
How does Serbia’s investment fund market compare to European markets?
— Serbia’s investment fund market is experiencing rapid expansion, particularly due to the potential for higher returns compared to traditional savings methods. The development of alternative funds is also supported by institutional investors. As of December 2024, insurance companies can invest up to 5% of their technical reserves in alternative funds, contributing to the development of Serbia’s capital market. While the state is making efforts to establish a regulatory framework for the transparent and responsible operation of investment funds, a key challenge remains in fostering an investment culture among both individuals and businesses. Education plays a crucial role in this, encompassing fi nancial literacy initiatives and the promotion of professional advisory services in investment decision-making.