A developing landscape
The market in Bosnia is far behind in its development when compared with markets in CEE (Central and Eastern Europe) or even when compared with countries in the region. There are no UCITS* funds in BiH, and money market and bond funds are predominant. Clients usually make a one-time investment, and awareness of continuous savings is quite low.
As of end of Q1/2024:
Value of close end funds in FBiH is 148 million euro managed by four asset management companies (AMCs).
Value of open-end funds in FBiH is 297 million euro managed by four AMCs.
Value of market in RS is 93 million euro managed by six AMCs.
Raiffeisen INVEST d.d. was established in 2011. The company manages three open-end funds with assets under management (AUM) of almost 289 million euro and currently has more than 95% of market share in open-end funds market in FBiH and thus represents the biggest non-banking financial institution in the country.
In addition to Raiffeisen Invest d.d., AMCs managing open-end funds in FBiH are Triglav Fondovi and two other companies. During Q3/2024 the two funds managed by newly established AMC UniCredit Invest were launched.
Raiffeisen INVEST d.d. as market leader is trying to constantly improve operations and processes to educate the public about investment funds and to create suitable products.
For a market at the level of development described above, it is difficult to evaluate or expect the introduction of technology because it is not supported or allowed by local legal framework.
Something that is worth mentioning is that at the beginning of 2024,Raiffeisen Bank offered clients the possibility to access information about balances and transactions, as well as the possibility of additional payments to the LAMC funds (local asset management companies), through the mobile banking application. By the end of 2024, it is expected that it would be possible to create fund saving plans using a mobile banking application.
* UCITS: The Undertakings for the Collective Investment in Transferable Securities (UCITS) is the European Commission's regulatory framework for managing and selling mutual funds. UCITS funds can be registered and sold in any country in the European Union using unified regulatory and investor protection requirements.
Source: Raiffeisen INVEST d.d., as of September 2024