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.
Value 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.
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.