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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineValue specialist Temple Bar is well placed for inflation and rising rates
TEMPLE BAR INVESTMENT TRUST (TMPL) £11.64
Loss to date: 1.9%
Original entry point: Buy at £11.87, 13 January 2022
Recent choppy market conditions have left our ‘buy’ call on Temple Bar (TMPL) 1.9% in the red, but we still believe the UK equity income trust is well-positioned in an environment of runaway inflation and rising interest rates given its focus on value stocks.
A five-for-one share split in May, which will result in a more modest price per individual share, should boost liquidity and help those who invest on a regular basis or reinvest their dividends.
With the UK market still cheap versus overseas counterparts, Temple Bar is a great way to benefit from the rotation into decent, cash generative firms with robust balance sheets trading on lowly valuations.
Investors have been eager for exposure to the value-style stocks in the portfolio ranging from Royal Mail (RMG) and Marks & Spencer (MKS) to BP (BP.) and NatWest (NWG).
Results for 2021, which was Temple Bar’s first full year under the management of Redwheel duo Ian Lance and Nick Purves, showed a pleasing net asset value return of 24.5% versus the FTSE All-Share’s 18.3%.
SHARES SAYS: Keep buying.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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