Temple Bar Investment Trust’s investment objective is to provide growth in income and capital to achieve a long term total return greater than the benchmark FTSE All-Share Index. The Company’s policy is to invest in securities with typically the majority of the portfolio selected from the constituents of the FTSE 350 Index. The Company maintains a diversified portfolio of investments, typically comprising 70-80 holdings. The UK equity element is invested in the FTSE All-Share Index; however, exceptional positions may be sanctioned by the Board and up to 20% of the portfolio may be held in listed international equities in developed economies. The fund charges a total expense ratio of 0.49% per year.
Reserves, Dividends & Cover
The dividends per share have increased over the last 10 years showing moderate growth above inflation. The total increase was 45.58% (3.47% annualized). The revenue reserves have not been increased at the same rate as the dividends with an increase of only 16.36% (1.39% annualized), meaning the reserve as a percentage of the dividends has reduced. The reserve cover started at 1.52 years in 2006 and ended at 1.21 years in 2017. The company has paid out cash reserves to maintain the dividend increases at the expense of reducing the reserve. The 10 year change in revenue reserves is 1.35% p.a. versus RPI at 1.92% p.a.