The UK value trust rewarded shareholders with a double-digit payout rise, even as its returns trailed a resurgent FTSE All-Share.
Temple Bar Investment Trust (LSE: TMPL) has raised its interim dividend by more than 13% after delivering solid, if unspectacular, returns in the first half of 2026, with the payout for the six months lifted to 7.65p a share from 6.75p a year earlier.
The value-focused trust posted a net asset value total return of 5.4% and a share price total return of 5.2% for the six months to 30 June, lagging the 7.2% notched up by the FTSE All-Share Index over the same period. The shares still carry a yield of around 3.7% despite a sustained rally over the past 18 months.
Co-managers Ian Lance and Nick Purves said the period was dominated by a geopolitical shock after the US and Israel struck Iran in late February, sending Brent crude to almost $120 a barrel by the end of March in its steepest quarterly rise since the first Gulf War. That backdrop favoured the FTSE All-Share's heavy energy and materials weighting, with BP, Shell and TotalEnergies among the trust's strongest performers, before a second-quarter rotation back into financials, consumer stocks and industrials as an interim US-Iran deal reopened the Strait of Hormuz.
The managers also pointed to a wave of overseas takeover interest in UK-listed companies during the period, including competing bids for easyJet from Castlelake and Apollo, Nuveen's approach for Schroders, and offers for Intertek, Beazley and Tate & Lyle, which they said underscores the persistent valuation gap between UK and global equities. Standard Chartered, NN Group and Aberdeen Group were also cited as strong contributors, though the managers noted the first two are no longer as cheaply priced as a couple of years ago.
Temple Bar flagged that performance has accelerated since the half-year cut-off, with year-to-date NAV and share price total returns running at 15.1% and 14.1% respectively against a 10.8% benchmark gain, closer to the 23.5% NAV return achieved in the year to 30 June. The managers cautioned that uncertainty over the ongoing Middle East conflict continues to weigh on energy prices and market sentiment heading into the second half.
This report is based on Temple Bar Investment Trust’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Jakub Żerdzicki on Unsplash.
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