The Slovenia Times

Investing In Foreign Markets



"After eight years at Ilirika I had had enough, so I decided to go out on my own," he explains. He has been an independent financial adviser for a little over a year now. How can we invest in foreign markets? Almost every stockbroking firm in Slovenia offers investors the opportunity of investing in foreign securities. There are, however, high overheads associated with this, as they must also pay commission to a foreign broker for completing the transaction. Which markets are the individual investors and the investment funds focusing on? According to the latest figures, Slovenians are investing money across the globe. The Balkan region is, of course, the most popular because local investors know this region well. The most notable aspect of this is that the majority of individual investors are buying into funds rather than directly into companies. What do you have to watch out for when investing in foreign markets? The most obvious thing is to choose the right stockbroker regardless of commission, as he or she can provide either good or bad advice and/or information. This is especially true when investing in ex Yugoslav countries, where some local brokerage houses seem to have better access to information than others. The capital markets of SE Europe - an opportunity for Slovenian investors or a large risk? Yes and no. Opportunity - yes, because the region is expected to develop in the long run and most companies are currently undervalued. The region has a history of political instability so some degree of caution is advised, as it is with every investment; however, it should not deter investors as the region appears to have put the worst behind it. What can you tell us about the competition between foreign funds in Slovenia? There is already very strong competition between foreign funds and I expect that it will only get stronger. We also have a lot of mutual funds now, which is leaving small investors a little confused if not overwhelmed by the choice. What is the hottest offer on our market at the moment? Funds focused on the energy and resource sectors and, of course, the Balkans. How will Slovenia's capital market develop in the future? The Ljubljana Stock Exchange must ensure that more capital stays at home. It can be done by new share issues, connecting to other trading systems or by initiating new securities.


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