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
Temple Bar Investment Trust Plc
Investec Fund Managers Ltd
Closed Ended Investment Company
UK Equity Income
0.47 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.8 %
Fund Size
£ 884.06 million
Discount Premium
To provide growth in income and capital to achieve a long-term total return greater than the benchmark FTSE All-Share Index, through investment primarily in UK securities. The policy of the company is to invest in a broad spread of securities with typically most of the portfolio selected from the constituents of the FTSE 350 Index.
Holding %
Capita PLC 7.79 %
GlaxoSmithKline PLC 7.19 %
Royal Dutch Shell PLC B 5.92 %
Travis Perkins PLC 5.63 %
BP PLC 5.10 %
Grafton Group PLC 4.00 %
Tesco PLC 3.89 %
Lloyds Banking Group PLC 3.80 %
SIG PLC 3.55 %
Barclays PLC 3.39 %
Region %
United Kingdom 92.66 %
Sector %
Financial Services 19.25 %
Basic materials 18.12 %
Industrials 17.38 %
Consumer Cyclical 15.12 %
Energy 11.95 %
Healthcare 7.79 %
Consumer Defensive 6.60 %
Investec Fund Managers Ltd
EC2V 5HA, London, United Kingdom
Legal Structure
Closed Ended Investment Company


Alastair Mundy
Joined 06/01/2000

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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