During the six month period to 30 June 2016 Temple Bar generated a net asset value total return of 3.8%, slightly underperforming the benchmark FTSE All Share total return of 4.3%. A notable feature of the period was the long awaited out-performance of larger companies relative to their smaller brethren; the FTSE 100 Index delivered a total return of 6.6% compared with a negative
return of 5.2% on the FTSE 250 Index. The large part of this out-performance occurred in the immediate aftermath of the Brexit vote on 23 June as the markets took a more cautious view of the prospects for generally more UK centric smaller companies, more of which are found among mid-sized companies rather than large companies.
A first quarterly dividend of 8.09p per share was paid on 30 June 2016, and the directors have declared a second interim dividend, also of 8.09p per share, to be paid on 30 September 2016
In terms of individual contributors to performance, the portfolio benefitted from its exposure to precious metals through gold and silver ETF holdings, a gold bullion holding and an investment in the silver mining company, Fresnillo. BP and GlaxoSmithKline were also positive contributors in the period, helped by currency considerations. The banking sector holdings in RBS and Lloyds
detracted from performance, most notably following the Brexit vote, and the positions in Grafton and SIG were also negatively impacted by the vote.
TMPL : Temple Bar hit by Brexit