1st Nov 2013 09:44
LONDON (Alliance News) - Temple Bar Investment Trust PLC Friday said it had performed slightly worse than its benchmark index in the third quarter, with investors getting a 5% return compared with a 5.6% return from the FTSE All-Share index.
Still, over a 10 year period, Temple Bar has returned 241% to investors compared with a 140% return by the index.
It said it has sold stocks that had performed well but reached a "full valuation", like Games Workshop and Travis Perkins, buying major stocks it feels are undervalued instead, like BP and Royal Dutch Shell. However, it's holding a "reasonably high level" of cash because of a lack of investment opportunities.
"Investor interest has now moved on to the likelihood that central banks may soon begin to slow down and ultimately reverse the expansionary policies they have conducted since the peak of the global financial crisis. It is unclear how easy a reversal of these policies will prove and we believe equity valuations worldwide leave little margin for error," it said in a statement.
Temple Bar borrowed GBP50 million in September, and said it is still confident of findings some good investments over the next few years to justify the extra borrowing.
GlaxoSmithKline and Vodafone remain its biggest holdings, followed by new investment Royal Ducth Shell.
Temple Bar shares were up 0.6% at 1,225 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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