Overview of Equity Brokerage
We recognize that the brokerage business has an inherent conflict of interest. Whilst investors hope to maximize risk adjusted returns, brokers are compensated based on activity, i.e. the buying and selling of shares. As a result, brokers can be inclined to serve the transaction, rather than the truth. At Next Capital, we are acutely aware that this conflict of interest needs to be resolved to build sustainable relationships with our clients. We firmly believe that it makes long-term business sense to align our interests with those of our clients.
Thus, our focus is on helping improve our clients' investment performance through asset allocation, trading, and stock selection strategies. If we do a good job, brokerage will follow. Our equity trading desk works closely with our equity research team to bring unique short-term and long-term investment opportunities to our clients.
The emphasis on client focus runs through the firm. We recognize that portfolio objectives and constraints of clients can differ. For example some clients have a short to medium term time horizon, whilst others can afford to take a longer term outlook. Our investment advice is tailored on the basis of client needs assessment.
Our clients include more than thirty of the top financial institutions in Pakistan, including leading mutual funds, commercial banks, and insurance companies. In a competitive world, institutional investors have a tough job outperforming the market. The fluid political and economic situation in Pakistan makes asset allocation decisions even tougher. We help our clients keep focus through research backed asset allocation and stock selection strategies.
High Net Worth Clients
To qualify as a High Net Worth client, the minimum portfolio size is PKR 5 million. High Net Worth clients are provided with personalized advice on their equity portfolio from our research and sales teams. Advice is tailored to the specific investment objectives and constraints of the client. Our sales team ensures efficient execution of all trades.
We are in the process of developing a state of the art online trading platform which will allow retail investors to undertake fundamental and technical analysis. This will allow retail investors the access to information that top institutional clients enjoy, improving their ability to enhance returns from equity investments.