Important to remember

It is important to remember that past performance should not be taken as a guide to the future and dividend growth is not guaranteed. In addition, the value of your shares in Temple Bar and the income from them can fall as well as rise and you may lose money.

Risk level
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:

Borrowing/leverage risk
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.

Charges to capital risk
A portion (60%) of the Company’s expenses are charged to its capital account rather than to its income, which has the effect of increasing income (which may be taxable) whilst reducing its capital to an equivalent extent. This could constrain future capital and income growth.

Company share price risk
The Company’s share price is determined by supply and demand for such shares in the market as well as the net asset value per share. The share price can therefore fluctuate and may represent a discount or premium to the net asset value per share. This can mean that the price of an ordinary share can move independently to the net asset value.

Interest rate
The value of fixed income investments (e.g. bonds) tends to decrease when interest rates and/or inflation rises.

Equity investment
The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.