As well as risk and return, liquidity is the third variable that has become increasingly important to performance for Fund Managers and the Goodbody team utilises a highly focused execution model that yields superior liquidity and market intelligence. The cost of liquidity is more than the headline execution rate and this is where we offer a unique service in reducing the overall transaction costs for our clients.
The highly experienced Trading team specialises in a high touch trading offering working alongside Sales Trading, Specialist Sales and Corporate Broking to help achieve the best results for our clients executing across the UK (FTSE) and Irish (ISEQ) sectors we cover. Our aim is to provide liquidity while supporting UK and Irish listed companies within our coverage universe. We achieve this via market making can also offer facilitation upon request. Our market maker status in all our coverage names forms part of our client facilitation offering but also acts to satisfy our MiFID2 pre-trade transparency requirements. Our underwriting facilities can also competitively price block trades if this is the preferred execution strategy. Transaction Cost Analysis (TCA) is also available to help monitor and analyse trading performance.
The majority of our trading is done High Touch (HT) and Off-Book On-Exchange (OBOE). Put simply, we aim to execute client orders and source liquidity with minimal market impact using our high-touch strategies, market-share intelligence and relationships. As a result of our HT approach we have built up a significant database of potential buyers and sellers across our coverage universe at any one time. The intelligence from each of these resources at Goodbody (Research, Specialist Sales, Trading, Advisory Sales and Corporate Broking) is paramount to achieving best execution and the best outcome for our customer base on an agency block or risk facilitation basis. Our reputation as the best SMID Cap crossing broker continues to grow but it’s the trust from our Institutional client base that allows us to be at our best when deducing an execution plan - working together as partners for the best possible execution strategy and outcome.
Our Sales team is made up of Specialists Sales and Advisory Sales. While our Research product is at the core of all our Investment advice at Goodbody there are many other variables that lie outside of our Advisory product that are driving equity prices, valuations and performance within the Goodbody SMID cap coverage universe. Direct access to international fund managers, our market shares and multiple intelligence feeds give our Specialist Sales team great insight and opportunity as to what is moving share prices beyond the fundamentals. Our Specialist Sales team aim to prepare this intelligence to generate value add single-stock and sector investment opportunities and to help clients with the investment process and better understand what is driving performance. The Specialist Sales team, with their unrivalled intelligence, also assist the Trade and Execution team to execute complex block trades providing improved outcomes in terms of market impact on price and time to completion. The bedrock of all our block trades is significant natural liquidity which is already active or proactively and directly generated from the Specialist Sales team’s intelligence and relationships.