TEMPLE BAR INVESTMENT TRUST: seeking out unloved stocks that should be worth more
WHAT IS IT?
Temple Bar seeks out unloved stocks that should be worth more. It looks for firms with the potential to be turned around under the right management, or hidden assets that could be exploited to boost investors’ returns.
WHAT DOES THE MANAGER INVEST IN?
Run by Alastair Mundy and his team at Investec, the trust looks for firms which have both solid dividend potential and a rising share price.
It is heavily focused on UK companies such as the banks, building merchant Travis Perkins, BT and outsourcer Capita.
WHAT DO THE EXPERTS LIKE?
Russ Mould, of stockbroker AJ Bell, says the trust has performed solidly for the past decade, consistently beating the FTSE All-Share index.
For every one of the past 20 years, it has increased its annual pay-out to shareholders.
The trust’s style of picking underperformers is not popular at present.
Mould says: ‘Contrarian value investing is still a bit out of fashion and it needs nerve and especially patience, so this is not an investment company which is suited to anyone looking for quick returns.’