Winterflood Securities has opened up an investment trust broking arm with an emphasis on gaining ret...
Winterflood Securities has opened up an investment trust broking arm with an emphasis on gaining retail business.
Close Wins, which is initially making markets in some 410 investment trust securities, was established after recruiting 15 members of HSBC's investment trust team at the end of May.
Charles Cade, head of research at Close Wins and previously at HSBC, said the group expects to take a substantial share of retail business via its automated trading platform known as Winner.
The Winner platform allows private client stockbrokers to trade over a screen rather than by telephone which Cade said should appeal to those placing orders, such as savings schemes.
Close Wins intends to increase its stock coverage over the next few months and Cade is confident about the future of the sector. He said some rationalisation is needed but there will continue to be demand for specialist products from both institutions and retail clients.
He added: 'Whether or not the UK market is cheap remains open for debate. However, there is no doubt that considerable value now exists within the investment trust sector. Weak, illiquid markets have led to an inefficient market and we believe this provides an environment where there will be opportunities to make money.'
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