Temple Bar Investment Trust Plc

UK Equity Income

Rated Fund 2013-15, 2018-20. Showing signs of a renaissance    

Temple Bar is quite conservatively managed but has had a poor recent run - we stuck with it but moved it into our adventurous selection. If 2019 is anything to go by, that was the right call. It was the top-performing UK equity income investment trust last year, driven by UK domestic stocks and self-help candidates such as Capita and Travis Perkins and a "Boris bounce" following the UK election result in December.

The experienced Alastair Mundy of 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. This runs the risk of falling into so-called value traps, but they put considerable emphasis on understanding business fundamentals and balance sheet dynamics to limit this possibility.

The board is committed to paying a rising dividend year after year and has met this commitment for the past 36 years. The trust yields 3.7% and pays income quarterly. "There should be plenty left in the income tank here, for example if Capita renews its dividend," says David Liddell, a director of IpsoFacto Investor. "For those looking for a growing income this trust should be attractive." Its revival has served to narrow the discount to some extent, with the shares trading in a range between 4% discount and around par in 2019.

Narrative and ratings content all as of January 2020.

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Temple Bar Investment Trust Plc
Ninety One UK Limited
Closed Ended Investment Company
UK Equity Income
0.49 %
Risk Rating
3 Year Sharpe
3 Year Alpha
6.8 %
Fund Size
£ 498.2 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 7.13 %
Travis Perkins PLC 6.91 %
Grafton Group PLC 4.93 %
Royal Dutch Shell PLC B 4.46 %
BP PLC 4.25 %
Tesco PLC 4.00 %
GlaxoSmithKline PLC 3.81 %
Barclays PLC 3.64 %
The Royal Bank of Scotland Group PLC 3.63 %
easyJet PLC 2.92 %
Region %
United Kingdom 92.73 %
Sector %
Industrials 29.09 %
Financial Services 17.37 %
Consumer Cyclical 16.30 %
Consumer Defensive 10.12 %
Energy 9.29 %
Basic materials 8.28 %
Ninety One UK Limited
EC2V 5HA, London, United Kingdom
Legal Structure
Closed Ended Investment Company


Alastair Mundy
Joined 08/01/2002

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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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.