TEMPLE BAR INVESTMENT CONFIDENCE: Choosing unloved stocks in the hope that they will deliver a great performance
What is it?
The 94-year-old trust is at a turning point. After Ninety One’s manager Alastair Mundy took a leave of absence due to ill health in April, it appointed Nick Purves and Ian Lance from RWC to lead the trust going forward.
What does it invest in?
Even with the new managers, confidence has confirmed that it will maintain its investing value style – choosing unloved stocks in the belief that they will deliver solid performance.
It mainly focuses on the UK, but does have positions in the US and Europe. Major holdings include Travis Perkins, IWG and Bayer.
What do the experts like?
James Carthew, of Marten & Co, wrote in a note to clients: “The RWC team says value stocks have never looked so unloved in the past 30 years of dealing with money.” According to them, it is ‘an attractive entry point for new investors’.
Value investing is seriously out of favor right now as the money has been accumulating in popular technology stocks.
RWC also plans to cut Temple Bar’s valuable dividend, which has been rising for 36 years, to a ‘more sustainable’ level.