| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 144.07 | -62 |
| Intrinsic value (DCF) | 118.36 | -69 |
| Graham-Dodd Method | 3.67 | -99 |
| Graham Formula | n/a |
Temple Bar Investment Trust PLC (LSE: TMPL.L) is a well-established UK-based closed-ended equity mutual fund managed by RWC Asset Management LLP. Founded in 1926, the trust primarily invests in UK public equities across diversified sectors, focusing on constituents of the FTSE 350 Index while benchmarking performance against the FTSE All-Share Index. With a market cap of approximately £883.7 million, Temple Bar offers investors exposure to a broad range of UK companies, spanning all market capitalizations. The trust's long-term investment approach and diversified portfolio make it a compelling option for investors seeking UK equity exposure. As part of the financial services sector, Temple Bar plays a significant role in the UK asset management industry, providing shareholders with potential capital growth and dividend income. The trust's historical longevity and consistent dividend payments (11.25p per share) underscore its reputation as a stable investment vehicle in the UK investment trust space.
Temple Bar Investment Trust presents an attractive proposition for investors seeking diversified exposure to UK equities with a value-oriented approach. The trust's strong historical performance, evidenced by its £139.5 million net income and 49p diluted EPS, combined with its healthy dividend yield, makes it appealing for income-focused investors. However, the trust's beta of 1.55 indicates higher volatility compared to the broader market, which may concern risk-averse investors. The absence of debt and positive operating cash flow (£32.5 million) demonstrate financial stability, while the trust's focus on FTSE 350 companies provides liquidity and transparency. Potential investors should weigh the trust's value investment strategy against current market conditions, as value stocks may underperform in certain economic environments. The trust's long-term track record and experienced management at RWC Asset Management provide confidence, but UK market concentration represents both opportunity and risk given Brexit-related uncertainties.
Temple Bar Investment Trust competes in the crowded UK investment trust space, differentiating itself through its pure focus on UK equities and value investment philosophy. The trust's competitive advantage lies in its long-term horizon (nearly a century of operation) and disciplined approach to stock selection within the FTSE 350 universe. Unlike many peers that have expanded into global markets, Temple Bar maintains its UK specialization, which can be advantageous when domestic markets outperform but limits diversification benefits. The trust's benchmark against the FTSE All-Share rather than narrower indices demonstrates its broad market approach. Temple Bar's zero debt position and consistent dividend history strengthen its appeal to conservative investors. However, its higher beta suggests the portfolio may be more cyclical than some competitors. The trust's size (£883.7 million market cap) provides sufficient scale for operational efficiency but may limit flexibility compared to smaller, more nimble competitors. RWC Asset Management's stewardship brings professional oversight, though some investors may prefer trusts with in-house management teams. In the current environment, Temple Bar's value orientation could be well-positioned if market leadership rotates away from growth stocks, but this same focus has caused relative underperformance during recent growth-dominated markets.