Temple Bar is an established investment company with a disciplined, value-oriented investment approach.
Here we take a look at the trust’s credentials.
Temple Bar’s investment objective is to provide investors with a growing income combined with growth in capital. It aims to meet this objective by investing primarily in UK equities, across different sectors, maintaining a balance of larger and smaller/medium-sized companies. The Trust has a bias towards FTSE 350 companies.
The Trust is managed by Nick Purves and Ian lance of Redwheel, who have more than fifty years of investment experience between them and have been working as a partnership for over thirteen years.
The strategy employed by Temple Bar is known as value investing. This is the process of buying a company’s stock for less than its true worth (sometimes known as its intrinsic value).
By buying at a discount, this strategy builds in a ‘margin of safety’ and whilst in the short term an undervalued company’s share price might fall further, in the long run the built-in value should ultimately be recognised by other investors, prompting the share price to rise to reflect the stock’s intrinsic value. There is much empirical evidence to show that value strategies have delivered excess returns over the longer term.
Of course, some companies are cheap for a good reason, but we believe investments in good quality, yet undervalued companies with strong cash flows and robust balance sheets offer the best potential for attractive long-term investment returns.
It’s important to remember that there is no guarantee that a company’s valuation will move to reflect the value that the portfolio managers see. In addition, future and dividend growth is not guaranteed. As a result, the value of your shares in Temple Bar and the income from them can fall as well as rise and you may lose money. Further key risks we believe are faced by Temple Bar investors can be read here.
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.
The Trust is one of the last remaining UK investment trusts to pursue a disciplined value approach to investing.
Temple Bar is an independent company with a board of directors whose responsibility is to seek the best investment return for its shareholders.
Portfolio managers Nick Purves and Ian Lance have more than 50 years of investment experience between them.
Value strategies have struggled in the growth-dominated markets of the last decade, but recent market behaviour suggests this style of investing may be resuming its former dominance.
Whilst not likely to influence your investment decision, you may be interested to know about the trust’s background.
The Temple Bar Investment Trust has a proud history and pedigree, having invested on behalf of others since 1926. Its original name was Cable, Telephone and General Trust Company Ltd. It was established to invest primarily in the bonds of North and South American telephone companies, but has been investing in UK equities for well over half a century.
Since it was established, it has confronted the challenges of the Great Depression of the 1930s, World War II, the inflationary 1970s and subsequent periods of equity market strength and weakness. While short term losses could not be avoided on these occasions, the Investment Trust has recovered strongly to post solid gains for long term investors. Please remember however that past performance should not be taken as a guide to the future, the value of investments can fall as well as rise and losses may be made.
The Trust’s current name was adopted in 1977 following a reverse takeover. The Temple Bar name has an interesting heritage:
- It was once one of the long line of structures marking the boundary between Westminster and the City of London
- It originally stood at the junction of Fleet Street and The Strand
- Temple Bar was associated with a celebration following the defeat of the Spanish Armada in 1588 and the funeral of Lord Nelson in 1806
- The heads of executed traitors used to be displayed above the central arch
- Temple Bar was moved to Theobald’s Park near Waltham Cross in 1878, but returned in 2004 to London’s Paternoster Square
Board of Directors
All the directors are independent and members of the audit and nomination committees.
Arthur Copple, Chairman, was appointed a director in 2011. He has specialised in the investment company sector for over 30 years. He was a partner at Kitcat & Aitken, an executive director of Smith New Court PLC and a managing director of Merrill Lynch. He is currently Chairman of Montanaro UK Smaller Companies Investment Trust PLC.
Richard Wyatt was appointed a director in 2017. He is a former Group Managing Director at Schroders, Lazard and is a Partner at Rothschild and Co. He was Chairman of the media agency Engine Group and served on the Regulatory Decisions Committee of the FSA. He is currently Chairman of Loudwater Partners Limited and London Contemporary Music Festival and a director of a number of other companies.
Lesley Sherratt was appointed a director in 2015. She was formerly Investment Director for the Save & Prosper and Fleming Flagship range of funds, and CEO & CIO of Ark Asset Management Ltd. She has over twenty years experience investing in the financial sector, including investment trusts, and served as a director and Chair of US Small Companies Investment Trust. She is currently a director of a private foundation, a trustee of the Henry Moore Foundation, lectures in global business ethics at King‘s College London and is the author of ‘Can Microfinance Work? How to Improve its Ethical Balance and Effectiveness‘.
Shefaly Yogendra, PhD was appointed a director in 2019 and chairs the Nomination and the Management Engagement Committees. She is an internationally experienced strategist with a focus on sustainable growth, inclusive leadership and emerging technologies. Shefaly is a Non-Executive Director of JP Morgan US Smaller Companies Investment Trust (LSE: JUSC) since 2016, where she chairs the Remuneration Committee, and of Harmony Energy Income Trust since 2021, where she chairs the ESG Committee. She is also an independent Governor of London Metropolitan University where she chairs the Audit & Risk Committee, earlier chaired the Governance Committee and is currently Vice Chair. Previously she was the COO and an executive director of Ditto AI and the cofounder and COO of luxe startup Livyora. Her career began in corporate venturing in HCL Corporation. Shefaly was among the “100 Women to Watch” in the Female FTSE Board Report 2016 and holds a PhD in Political Decision Making from the University of Cambridge. She trained earlier in engineering, management, and technology policy.