The appropriately named Belgrade Pioneer Fund launches on 31 October 2007, and has an opening investment period lasting until 15 November 2007. The fund, with a duration of five years, will have a minimum investment of EUR15,000, and is expected to raise a total of up to EUR10mn.

“Mentioning Serbia usually conjures up memories of civil war, hyperinflation and the regime of Slobodan Milosevic. Despite the continued uncertainty over Kosovo’s future, the reality of Serbia today is markedly different from that description. There is increasing political stability, including in external affairs, which is providing the foundation for strong economic growth,” observed Stuart Place, a director of Argyll.

Argyll was again one of the first on the scene when it launched the property fund Montenegro Investments Limited in 2005.

“Interestingly, back in 2005 part of the case for Montenegro was that it was NOT Serbia. Now given the political and economic situation – with Foreign Direct Investment at its highest ever levels, labour costs half those of some of its neighbours, corporation tax at an attractive 10% and the promise of further privatisation – there is a strong case IN FAVOUR of Serbia,” added Mr Place.

The Belgrade Pioneer Fund, which is targeting returns of 20%+ per annum net, will have a spread of investments, although the main focus will be on residential developments in Old Belgrade.

Guernsey-based service providers to the fund include administrators Bordeaux Services, bankers Kleinwort Benson, auditors KPMG and legal advisers Carey Olsen.

Peter Niven, Chief Executive of GuernseyFinance, announced that: “The launching of this fund demonstrates the high quality of investment management expertise that exists in Guernsey."

He continued: “In addition, the Belgrade Pioneer Fund illustrates how the breadth and depth of services available in Guernsey means that the Island can provide a ‘one-stop shop’ for investment funds.”

It is anticipated that a larger, listed Serbian property fund will be launched in Q2 of 2008.