Fund Information / Factsheet • Dec 14, 2023
Fund Information / Factsheet
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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 Company's policy is to invest in a broad spread of securities with typically the majority of the portfolio selected from the constituents of the FTSE 350 Index.
November saw a rally in equity markets due to increased hopes that central banks have finished their rate tightening cycles and will be able to achieve a soft landing. In the UK, both headline and core inflation slowed more than expected, and the November Services PMI moved above 50. The portfolio performed well in November. Marks & Spencer, NatWest and NN Group were the largest contributors to performance, while Centrica, ITV and the oil majors were detractors from performance.
Marks & Spencer was the largest contributor in the month as the company posted a strong set of results with first-half pre-tax profits beating estimates and the company reinstating a dividend for the first time since 2019. NatWest saw its share price rebound in November following a weak set of results in the prior month; during the Autumn Statement it was announced that the government would be exploring options for a NatWest retail share offer in the next 12 months. Dutch insurer NN Group saw its share price jump at the end of the month following a positive read-across from news that ASR had reached a settlement with claims organisations on unit-linked litigation.
Centrica was a detractor from performance, as the share price pulled back following a run of positive performance; having simplified and de-risked the business, management intend to invest in the energy transition and thereby create further value for shareholders. ITV's share price fell following results in which the company said they expect total advertising revenue for 2023 to drop about 8% year on year. The oil majors moved lower with oil prices; brent crude was down over 5% due to an increase in US oil supply and OPEC+ members not adhering to production quotas.
UK equities continue to be valued at a significant discount to global equities generally. Accordingly, we believe that, notwithstanding the shorter-term uncertainties, UK equities are priced to offer relatively attractive returns into the future.
Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed; an investor may receive back less than the original amount invested.
| 22.9% | Financials | 71.3% | United Kingdom |
|---|---|---|---|
| 19.8% | Energy | 7.6% | Netherlands |
| 14.5% | Consumer Discretionary | ||
| 11.3% | Communications | 6.8% | United States |
| 8.4% | Materials | 5.6% | France |
| 5.4% | Industrials | 1.9% | Japan |
| 5.0% | Consumer Staples | 1.3% | Hong Kong |
| 3.3% | Healthcare | 1.2% | Canada |
| 3.2% | Utilities | ||
| 3.0% | Information Technology | 1.1% | Germany |
| 3.2% | Cash & equivalents | 3.2% | Cash & equivalents |
| Top 10 equity holdings | (%) |
|---|---|
| Shell | 7.4 |
| BP | 6.7 |
| TotalEnergies | 5.6 |
| Marks & Spencer | 5.0 |
| NatWest | 5.0 |
| Aviva | 4.3 |
| ITV | 4.2 |
| Anglo American | 4.2 |
| Stellantis | 3.9 |
| Barclays | 3.8 |
| Total | 50.1 |
Trust objective
| Gross Assets | £769.8m |
|---|---|
| Share price (p) | 229.00 |
| NAV (p) (cum income)* | 244.03 |
| Premium/(Discount), Cum income* | -6.2% |
| Historic net yield | 4.2% |
| Net gearing* | 6.9% |
| *Calculated with debt at fair value |
| Pay date | ||
|---|---|---|
| 29.12.23 | ||
| 29.09.23 | ||
| 30.06.23 | ||
| 2.50 | 02.03.23 | 31.03.23 |
| Amount (p) 2.50 2.30 2.30 |
XD date 30.11.23 24.08.23 01.06.23 |
Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed; an investor may receive back less than the original amount invested. This Trust may not be appropriate for investors who plan to withdraw their money within the short to medium term.
| Cumulative returns (%) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share Price |
NAV | FTSE All-Share |
||||||
| 1 month | 3.6 | 3.5 | 3.0 | |||||
| 3 months | 1.3 | 1.8 | 0.6 | |||||
| 3 year | 37.1 | 43.5 | 27.3 | |||||
| 5 year | 19.8 | 19.9 | 26.8 | |||||
| 10 year | 37.9 | 46.2 | 63.8 | |||||
| Since 30/10/2020 0.0% |
85.2 | 80.7 Cash & equivalents |
43.5 | |||||
| Share Price |
NAV | FTSE All-Share |
||||||
| 30.11.22 - 30.11.23 | 4.7 | 5.0 | 1.8 | |||||
| 30.11.21 - 30.11.22 | 10.8 | 8.4 | 6.5 | |||||
| 30.11.20 - 30.11.21 | 18.1 | 26.1 | 17.4 | |||||
| 30.11.19 - 30.11.20 | -26.9 | -28.1 | -10.3 | |||||
| 30.11.18 - 30.11.19 | 19.6 | 16.1 | 11.0 |
Performance, price and yield information is sourced from Morningstar as at 30.11.23.
* Exposures expressed as a % of the gross assets (investments plus cash) of the Company.
Monthly factsheet – 30 November 2023
Launch date 1926 ISIN GB00BMV92D64 Sedol BMV92D6 Ticker TMPL Year end 31 December Dividends paid Quarterly in March, June, September and December Benchmark FTSE All-Share Association of Investment Companies (AIC) sector UK Equity Income ISA status May be held in an ISA and Junior ISA Capital structure Ordinary shares in issue: 290,934,111 in circulation 43,429,714 in treasury Debt 4.05% private placement loan 2028 £50m 2.99% private placement loan 2047 £25m
Ongoing charge: 0.54%, effective 31 December 2022 Includes a management fee of 0.325%. Excludes borrowing and portfolio
transaction costs. AIFM, Administrator & Company Secretary
Frostrow Capital LLP with effect from 1 July 2023 Portfolio Manager RWC Asset Management LLP with effect from 30
October 2023
Portfolio Management Team Ian Lance and Nick Purves
Registrar Equiniti Financial Services Limited Depositary & Custodian Bank of New York Mellon
Frostrow Capital LLP 25 Southampton Buildings London, WC2A 1AL frostrow.com [email protected] 0203 008 4910
This document is for information purposes only and does not constitute an offer or invitation to purchase shares in the Company and has not been prepared in connection with any such offer or invitation. Before investing in the Company, or any other investment product, you should satisfy yourselfastoitssuitabilityandtherisksinvolved,andyoumaywishtoconsultafinancialadviser.
Any return you receive depends on future market performance and is uncertain. The Company does not seek any protection from future market performance so you could lose some or all of yourinvestment. For information on the principal risks the Company is exposed to please refer to the Company's Annual Report, Key Information Document orInvestor Disclosure Document, availableathttps://www.templebarinvestments.co.uk/documents/.
Shares intheCompanyareboughtandsoldontheLondon Stock Exchange. Thepriceyoupay orreceive,likeotherlistedshares,isdeterminedbysupplyanddemandandmaybeatadiscount orpremiumto theunderlyingnetassetvalueoftheCompany.Usually,atanygiventime,the priceyoupayforasharewillbehigherthanthepriceyoucouldsellit.
TheCompanyhas increaseditsexposuretoinvestmentsviaborrowingsandthiscould potentially magnifyanylossesorgainsmadebytheCompany.
TheCompany's gearing and discountmanagementpolicies canbe foundat https://www.templebarinvestments.co.uk/investment-approach/investment-policies/
The valueof fixedincome assets&liabilities(e.g.bonds)tends todecreasewheninterestrates and/orinflationrises,andincreasewheninterestratesand/orinflationfalls.
The Company's portfolio may be concentrated in a limited number of geographical regions, industry sectors, markets and/orindividualpositions. Thismay resultin large changes in the value of the portfolio, both upordown,whichmayadverselyimpacttheCompany's performance.
TheCompany is suitableforinvestorsseekinganinvestmentthataimstodelivertotalreturnsover the longerterm (atleastfive years), is compatiblewiththeneeds forretail clients,professional clientsandeligiblecounterparties,andiseligibleforalldistributionchannels.
The Company may not be suitable for investors who are concerned about short-term volatility and performance, have low or no risk tolerance or are looking for capital protection, who are seeking a guaranteed orregularincome, or a predictable return profile. The Company does not offer capitalprotection.
Frostrow Capital LLP has conducted an annual value assessment on the Company in line with Financial Conduct Authority (FCA)rules set outin the Consumer Duty regulation. The assessment focuses on the nature ofthe product, including benefits received and its quality, limitations that are partoftheproduct,expectedtotalcoststoclientsandtargetmarketconsiderations.
Within this, the assessment considers quality of services, performance of the Company (against both benchmark and peers), total fees (including managementfees and entry and exitfees as applicable to the Company), and also considers whether vulnerable consumers are able to receive fairvaluefromtheproduct.
FrostrowCapital LLPconcludedthatthe Companyisprovidingvaluebasedontheabove assessment.
ThisfinancialpromotionisissuedbyFrostrowCapitalLLPwhichisauthorisedandregulatedby theFinancialConductAuthority ("FCA").
Allrightsinanyreferencedindexarevestedintheindexownerand/oritslicensors,whodonot acceptanyliabilityforanyerrorsoromissions intheindexoranyunderlyingdata.
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