Hi Paul – CYBG has appeared in our Growth Portfolio. Not too sure what strategy to use here. Do we sell (exit the position) or do we carry it as part of a de-facto NAB share for now?
A: Thanks for the question.
CYBG Plc shares (ASX Code CYB) were issued in February following the demerger from NAB. It is the old Clydesdale and Yorkshire Banks.
75% was distributed on an in-kind basis to NAB shareholders on a 1:4 basis, with 25% sold via an IPO into the market.
I am holding because the shares are very cheap. Essentially, it is a play on a new management team, free from the NAB Head Office in Melbourne, taking this bank forward.
However, it is such a small investment – probably won’t make any difference to the portfolio return.
