Temple Bar Investment Trust Plc
UK Equity Income
Rated Fund 2013-15, 2018-19. Fund shows signs of a renaissance
Temple Bar is quite conservatively managed, but a poor recent run means it forms part of our adventurous selection.
The experienced Alastair Mundy at Investec Asset Management has been at the helm of the trust since 2002. He is known for his contrarian investment style influenced by scepticism about the global economic recovery that he believes has been artificially driven by quantitative easing.
He is supported by a team of three, all of whom have worked together since 2006, making this a stable team. They back companies whose share prices have seen significant declines relative to the market. is runs the risk of them falling into value traps, but they put considerable emphasis on understanding business fundamentals and balance sheet dynamics to limit this possibility.
Mundy’s value-oriented approach has been out of favour in recent years. “ is old favourite has had patchy performance of late,” says David Liddell, a director at IpsoFacto Investor. “It had been on a recovery phase, but a big bet on Capita seems to have taken a toll. Moreover, it has a relatively large exposure to UK banks.” The capacity of Temple Bar to deliver a rising income stream to investors remains rather attractive, however. The latest quarterly dividend is up 5% on last year’s payout. It has a yield of 3.8%.
The board is committed to paying a rising dividend year after year, and it has met this commitment for the past 35 years, so this fund has particular appeal for investors who want regular and dependable income.
Shares can be bought at a 3.7% discount to net asset value, the discount having narrowed from 10% in October 2016.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|GlaxoSmithKline PLC||6.58 %|
|Royal Dutch Shell PLC B||6.00 %|
|Travis Perkins PLC||5.97 %|
|Capita PLC||5.83 %|
|BP PLC||5.52 %|
|Lloyds Banking Group PLC||4.37 %|
|Grafton Group PLC||4.27 %|
|SIG PLC||4.01 %|
|HSBC Holdings PLC||4.01 %|
|The Royal Bank of Scotland Group PLC||4.01 %|
|United Kingdom||93.68 %|
|Financial Services||21.34 %|
|Basic materials||18.40 %|
|Consumer Cyclical||14.18 %|
|Consumer Defensive||6.19 %|
Alastair is head of the Value team at Investec Asset Management having joined in 2000 from Morley Fund Management. Alastair manages a number of funds including the Investec Cautious Managed Fund and the Investec UK Special Situations Fund. He also manages the Temple Bar Investment Trust. Alastair graduated from City University with a Bachelor of Science degree in Actuarial Science in 1988.
Data provided by Morningstar.
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