As a broad-based UK fund mainly investing in larger companies Temple Bar might be regarded as “medium” risk, in a range where gilts and corporate bonds would typically be “low” risk and equities would typically be “high” risk.
The main risks which we believe are faced by Temple Bar investors are as follows:
The Company can borrow additional money to invest, known as leverage. This increases the exposure of the Company to markets above and beyond its total net asset value. This can help to increase the rate of growth of the fund but also cause losses to be magnified.