Not All Financial Stocks are Bad Banks says Finsbury's Nick Train

Scared off financial stocks by the badly behaved banks? Gold rated investor Nick Train of Finsbury Growth & Income trust picks companies which buck the trend

Emma Wall 9 August, 2016 | 12:34PM
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Financial stocks have taken a battering since Brexit. Investors concerned about what the UK leaving the European Union would mean for banking licenses and ease of global business pulled money from the big banks. On June 27 trading was suspended in Royal Bank of Scotland (RBS), Lloyds (LLOY) and Barclays (BARC) shares following dramatic 10% plus drops in their share prices.

RBS saw their share price drop by 15% in mid-day-trading – erasing gains made over the previous five years, to return to levels last seen in 2012.

Investors had been warned prior to the Brexit vote that banking stocks were at risk. Speaking at the beginning of June Edward Smith, Asset Allocation Strategist for Rathbones said: “Banks are one of our key sources of risk from Brexit and that's because of the direction of travel in European legislation and regulation.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barclays PLC186.26 GBX1.37Rating
Diageo PLC3,486.50 GBX0.07Rating
Finsbury Growth & Income Ord889.43 GBX-0.29
Lloyds Banking Group PLC45.56 GBX0.28Rating
NatWest Group PLC219.45 GBX0.85Rating
Rathbone Brothers PLC1,986.00 GBX-0.10
Schroders PLC3,656.00 GBX-0.08Rating
Unilever PLC3,967.84 GBX-0.56Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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