investment broker to launch investment trust business in august after hiring 15 from hsbc
Winterflood Securities, the investment broker that is part of the Close Group, plans to begin trading in investment trusts later this year.
Winterflood has confirmed it has hired 15 people from HSBC's investment trust team and has scheduled the launch of its investment trust business for the beginning of August
Mike Hines, joint chief executive officer at Winterflood, confirmed that as well as recruiting Charles Cade, head of investment trust research at HSBC, Winterflood has also taken James Moseley, head of sales, Tom Drurie, head of corporate broking, and Richard Browne, head of market making, as well as 11 support staff.
This gives the group a functioning investment trust unit it can bring online quickly. It can then begin to carve out a niche in the business, which is increasingly being deserted by many of the large investment banks, who no longer see it as profitable enough.
Hines said that in the investment trust business, Winterflood will concentrate on market making, sales, issuing research and corporate broking. In order to launch the business, however, it needs needs FSA approval.
There are plenty of opportunities in the market, he added, and the group will be looking to get involved in the restructuring of split-capital investment trusts.
Hines said the research capability Cade and his colleagues bring to Winterflood will dramatically increase the number of stocks it covers.
He added: 'At present, we cover around 1,600 to 1,700 stocks. Getting involved in investment trusts will add about 400 stocks to our market making arm and give us the largest coverage of stocks in London.'
At Winterflood, Cade and the team will get access to its automatic trading system, called Winner, which allows stockbrokers to call up and do deals on screen rather than on the telephone.
It has been well documented that the team at HSBC was unhappy over the group's decision not to pay them a bonus last year. As yet, HSBC has made no statement about whether it intends to remain active in the investment trust broking business.
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