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Temple Bar Investment Trust PLC
Fund Information / Factsheet • Jan 12, 2024
5205_rns_2024-01-12_e2edc522-bfd7-4de1-8178-83b695a5ebc8.pdf
Fund Information / Factsheet
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Market commentary
December saw a strong year-end rally in equities driven by softening inflation data and the market pricing in rate cuts for 2024. In the UK, inflation slowed to 3.9% the lowest rate for more than two years.
The portfolio performed well in December, although it underperformed the FTSE All-Share Index. The main contributors to performance were Marks & Spencer, International Distributions Services (IDS) and Barclays. The leading detractors from performance were Centrica, Anglo American and BP.
Marks & Spencer was the largest contributor during the month; the company continues to perform well from an operational perspective, taking market share in both clothing and food. IDS continues to perform well since the new agreement with the Communication Workers Union; IDS also benefitted from broker upgrades during the month. UK banks Barclays and NatWest also performed well during the month.
Anglo American's share price fell sharply as the company unveiled plans to cut production to help reduce costs, with the largest cuts to guidance coming in its copper business. Centrica, which performed very well in 2023, fell slightly in December; having simplified and de-risked the business, the management intend to invest in the energy transition and thereby create further value for shareholders. BP was also a slight detractor from performance; BP has a strong balance sheet and offers a well-covered dividend that can grow.
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.
Three-year performance (%)
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
Source: Morningstar
Sector and geographic analysis (%)
back less than the original amount invested.
| Financials 23.5% |
72.1% | United Kingdom | |||
|---|---|---|---|---|---|
| 19.1% | Energy | 7.8% | Netherlands | ||
| 15.2% 11.3% |
Consumer Discretionary Communications |
6.9% | United States | ||
| 8.1% | Materials | 5.4% | France | ||
| 5.8% | Industrials | 1.8% | Japan | ||
| 5.3% | Consumer Staples | 1.3% | Hong Kong | ||
| 3.4% | Healthcare | 1.3% | Canada | ||
| 3.0% | Utilities | 1.1% | Germany | ||
| 3.0% 2.3% |
Information Technology Cash & equivalents |
2.3% | Cash & equivalents |
* Exposures expressed as a % of the gross assets (investments plus cash) of the Company.
Trust objective
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.
Top 10 equity holdings (%) Shell 7.3 BP 6.4 TotalEnergies 5.4 Marks & Spencer 5.3 NatWest 5.1 Aviva 4.4 ITV 4.3 Stellantis 4.0 Barclays 4.0 Anglo American 3.8 Total 50.0
Financial data
| Gross Assets | £795.7m |
|---|---|
| Share price (p) | 238.00 |
| NAV (p) (cum income)* | 252.22 |
| Premium/(Discount), Cum income* | (5.6%) |
| Historic net yield | 4.0% |
| Net gearing* | 8.0% |
| *Calculated with debt at fair value |
Dividend history
| Type | Amount (p) | XD date | Pay date |
|---|---|---|---|
| 3rd interim – 2023 | 2.50 | 30.11.23 | 29.12.23 |
| 2nd interim – 2023 | 2.30 | 24.08.23 | 29.09.23 |
| 1st interim – 2023 | 2.30 | 01.06.23 | 30.06.23 |
| th interim – 2022 4 |
2.50 | 02.03.23 | 31.03.23 |
Performance (total return)
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 Company may not be appropriate for investors who plan to withdraw their money within the short to medium term.
| Cumulative returns (%) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share | NAV | FTSE | ||||||
| Price | All-Share | |||||||
| 1 month | 3.9 | 3.4 | 4.5 | |||||
| 3 months | 1.9 | 1.8 | 3.2 | |||||
| 3 year | 39.9 | 41.2 | 28.1 | |||||
| 5 year | 28.8 | 30.0 | 37.7 | |||||
| 10 year | 41.5 | 47.5 | 68.2 | |||||
| Since 30/10/2020 0.0% |
92.5 | Cash & equivalents 86.7 |
50.0 | |||||
| Share | NAV | FTSE | ||||||
| Price | All-Share | |||||||
| 31.12.22 - 31.12.23 | 12.5 | 12.3 | 7.9 | |||||
| 31.12.21 - 31.12.22 | 3.6 | 0.9 | 0.3 | |||||
| 31.12.20 - 31.12.21 | 20.0 | 24.6 | 18.3 | |||||
| 31.12.19 - 31.12.20 | -31.5 | -28.0 | -9.8 | |||||
| 31.12.18 - 31.12.19 | 34.3 | 27.9 | 19.2 |
Temple Bar Investment Trust Plc
Monthly factsheet – 31 December 2023
Trust facts
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: 290,612,881 in circulation 43,750,944 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 2020
Portfolio Management Team Ian Lance and Nick Purves Registrar Equiniti Financial Services Limited
Depositary & Custodian Bank of New York Mellon
How to Contact Us
Frostrow Capital LLP 25 Southampton Buildings London, WC2A 1AL frostrow.com [email protected] 0203 008 4910
Risk warnings
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 yourself as to its suitability and the risks involved, and you may wish to consult a financial adviser.
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/.
Company share price risk
Shares in the Company are bought and sold on the London Stock Exchange. The price you pay or receive, like other listed shares, is determined by supply and demand and may be at a discount or premium to the underlying net asset value of the Company. Usually, at any given time, the price you pay for a share will be higher than the price you could sell it.
Borrowing/leverage risk
The Company has increased its exposure to investments via borrowings and this could potentially magnify any losses or gains made by the Company.
The Company's gearing and discount management policies can be found at https://www.templebarinvestments.co.uk/ investment-approach/investment-policies/
Interestrate
The value of fixed income assets & liabilities (e.g. bonds) tends to decrease when interest rates and/or inflation risesand increase when interest rates and/or inflation falls.
Concentration risk
The Company's portfolio may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the portfolio, both up or down, which may adversely impact the Company's performance.
Target market
The Company is suitable for investors seeking an investment that aims to deliver total returns over the longer term (at least five years), is compatible with the needs for retail clients, professional clients andeligible counterparties andis eligible for alldistributionchannels.
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 capital protection.
Value assessment
Frostrow Capital LLP has conducted an annual value assessment on the Company in line with Financial Conduct Authority (FCA) rulesset out in the Consumer Duty regulation. The assessment focuses on the nature of the product, including benefits received and its quality, limitations that are partoftheproduct, expectedtotal costs to clients andtargetmarket considerations.
Within this, the assessment considers quality of services, performance of the Company (against both benchmark and peers), total fees (including management fees and entry and exit fees as applicable to the Company) andconsiders whether vulnerable consumers are able to receive fair value from the product.
Frostrow Capital LLP concluded that the Company is providing value based on the above assessment.
Importantinformation
This financial promotion is issued by Frostrow Capital LLP which is authorised and regulated by the Financial Conduct Authority ("FCA").
Allrights in any referenced index are vested in the index owner and/or its licensors, who do not accept any liability for any errors or omissions in the index or any underlying data.
