Post Brexit: QBE clear value
Following the Brexit sell off, stocks with direct exposure to financial market volatility, and those leveraged to rising interest rates, were dumped from investors' portfolios. We see two potential opportunities after the fall – 1. Clydesdale & Yorkshire Banking Group, covered yesterday (VIEW LINK) and QBE Insurance Group (QBE). We view improvements to the structure and makeup of the underlying business, and an achievable strategy to increase group ROE, as offsetting the increased risks associated with the Brexit. QBE is trading at a significant discount to our forward valuation and may be a potential opportunity for value investors. (VIEW LINK)
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The Clime Group is a respected and independent Australian Financial Services Company, which seeks to deliver excellent service and strong risk-adjusted total returns, closely aligned with the objectives of our clients.