Otago brokers to set up in Chch

Press, 9 March 1987, Page 13

Otago brokers to set up in Chch

Special correspondent With 20,000 clients and a staff of 80 the Dunedin sharebroking firm of Forsyth Barr, Ltd, can claim to be the biggest securities firm in the South Island. It is reinforcing this claim by opening a branch in Christchurch, staffed by six people. No other sharebroking firm in the South Island has yet attempted to give what amounts to islandwide coverage. The only “foreigner” in Christchurch is Jordan, Sandman, Smythe. But Jordan’s is concentrating on corporate work, whereas Forsyth Barr will aim at the retail market, dealing in shares, fixedinterest securities, and the money market for private clients. The move is scheduled for May 1, with one of the directors, Mr Michael Sidey, in charge. “We have been eyeing Christchurch for a long time,” said Mr Michael Devereux, chairman of Forsyth Barr. “We have had a lot of requests to go to Christchurch from existing clients, so in many ways it is a logical thing to do.” Christchurch has three times the population and a sharebroking community not much larger than Dunedin’s, so Forsyth

Barr sees considerable scope and it believes a bigger operation will be a better one.

“We were thinking of setting up in Christchurch last year but decided it would be irresponsible to do so until we had the technical facilities in place to do it,” Mr Devereux said. “We have great confidence in the continuing growth of the investment scene. But there are brokers around the country who have not expanded because they did not know whether the growth would continue.

“We have taken a calculated risk with this expansion.”

The risk has involved spending more than a million dollars on facilities to handle more traffic, including an eightstation dealing room. The eight client advisers each have a terminal which

constantly updates New Zealand share prices, and at the touch of a button can switch to a client’s portfolio for the state of his or her account. In the same room is telex and a Reuters monitor which gives real-time indices, overseas prices, and business news.

With this dealing room and ample computer facilities, Forsyth Barr does not have to set up parallel operation in Christchurch. All transactions will be executed in Dunedin.

Apart from looking to increase business through Christchurch, Forsyth Barr is optimistic about the future of the investment industry generally. Mr Eion Edgar, managing director, says there is enormous confidence in the growth of personal savings.