What is the Temple Bar investment trust's recent performance?

The Temple Bar investment trust has delivered returns of 158% since mid-November 2020, more than twice the gains of the FTSE All-Share Index and its UK equity income peer group.

How have the trust's managers, Ian Lance and Nick Purves, achieved these impressive results?

The managers have followed a value investing approach, identifying chronically undervalued UK companies such as Marks & Spencer and NatWest and holding them as their true value is realized by the market.

What is the managers' outlook for the Temple Bar trust going forward?

While not expecting the same level of outsized gains, the managers remain optimistic about the trust's future prospects. They see the trust's value investing approach as a form of protection against the potential bursting of the artificial intelligence (AI) bubble.

Home / Business and Economy / Temple Bar Investment Trust Surges 158% in 2 Years, Managers Remain Optimistic

Temple Bar Investment Trust Surges 158% in 2 Years, Managers Remain Optimistic

16 Nov

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Summary

Temple Bar investment trust delivers 158% returns since 2020
Managers find undervalued UK stocks, including M&S and NatWest
Trust's value investing approach seen as protection against AI bubble

Temple Bar Investment Trust Surges 158% in 2 Years, Managers Remain Optimistic

In the past two years, shareholders in the Temple Bar investment trust have seen the value of their holdings surge by an impressive 158%. This far outpaces the 77% gain in the FTSE All-Share Index and the 61% average for its UK equity income peer group over the same period.

The trust's success is largely attributed to the value investing approach of its managers, Ian Lance and Nick Purves of global investment house Redwheel. They have identified chronically undervalued UK companies and held them as their true worth has been recognized by the market. For example, they bought shares in Marks & Spencer for under £1 and NatWest at levels not seen since the 2008 financial crisis, and both stocks have since jumped by 193% and 292% respectively.