CLSA Global Emerging Markets is set to enter the funds broking business after recruiting members of a team which made its name at Peregrine Investments Holdings. The London-based Country Funds Team will cover 400 closed-end, or listed emerging-market, funds and make markets in 80 of those funds. It will begin trading on January 4. 'Funds are a good way to quickly get into a market if you think it is going to bounce,' said Nick Paris, who is joint head of the team with Wilf Blake. 'We recommend the good ones and find shares in them.' Six of the seven-member team, including Mr Paris and Mr Blake, had been with Peregrine until it collapsed in January. The team's chief trader, John Bridgeman, was also formerly with Peregrine. As one of the Peregrine assets bought by Grupo Santander in February, they were with Santander Investment Securities until September, when the Spanish banking group abruptly pulled out of the investment. CLSA managing director Mike McCoy said: 'A country fund can offer a cheaper or more liquid, and certainly a more user-friendly, route for a portfolio manager.' The main clients will be large asset managers and private-banking groups. Mr Paris said: 'When we were at Peregrine we were the leading players in offshore funds.' Major competitors in the country-fund broking business include SBC Warburg Securities and Robert Fleming Securities in London, and Bear Stearns in New York. Mr Paris said many emerging-market funds had shrunk because of the Asian crisis and its contagion effect on other developing countries, but there had been a turnaround in the past few months. Mr McCoy said: 'CLSA will continue to take advantage of the volatility in emerging markets by expanding its portfolio of services at a time when good market practitioners are available.'