Making an investment
It is straightforward to invest in Temple Bar. The method you choose will depend on your individual circumstances and priorities.
- You can buy shares directly through a traditional or online stockbroker
- There are a number of investment platforms that offer both regular monthly investments and lump sum investments
For an independent view, you might like to read this AIC article about the availability of investment trusts on investment platforms.
We recommend that you seek independent financial advice to ensure Temple Bar is suitable for your investment needs. Please ensure you take account of the risks involved in a stock market-based investment.
What are the risks?
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.
As a broad-based investment trust investing mainly in larger UK companies, Temple Bar can be regarded as ‘medium’ risk. Within this range fixed interest investments such as Gilts and corporate bonds would typically be categorised as ‘low’ risk and equities would typically be regarded as ‘medium’ or ‘high’ risk, depending on the regional focus of the strategy and the type of business likely to be invested in.
The main risks which we believe are faced by Temple Bar investors are as follows:
The Company can borrow additional money to invest, which is known as leverage or gearing. This increases the amount of money that the Company can invest beyond that supplied by shareholders. In effect, this amplifies returns and may make the short-term performance of the Company’s shares more volatile. It can help to increase the rate of growth that shareholders experience, but it can 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 the supply and demand for the shares in the market as well as the net asset value per share. The share price can therefore deviate from net asset value per share, and may trade at a discount or premium to its underlying value.
The value of equities and equity-related investments may vary according to the profits and future prospects of any business in which the Company invests, as well as more general market factors. In the event of any company becoming insolvent, the owners of its equity rank last in terms of any ultimate financial payment from that company.
Other risks faced by the Company include, but are not limited to, investment strategy risk, loss of investment team or Portfolio Managers, reliance on the Investment Manager and other service providers, compliance with laws and regulations, cyber security, global risk (e.g. climate risk, pandemics), market price risk, interest rate risk, liquidity risk, credit risk and currency risk.