On the fifth anniversary of Redwheel’s management of the Temple Bar Investment Trust, we take a look back at the trust’s performance and its current proposition to investors.
Since Redwheel assumed management responsibilities of Temple Bar in October 2020, the Investment Trust has delivered strong returns that significantly outperform both its benchmark and its peer group.
The Trust’s share price has surged 221.0% over the five-year period to 31 October 2025, more than doubling the FTSE All-Share Index’s 98.6% return.
Net asset value has risen 189.7%, outperforming the benchmark by 91.1%.
The transformation of the trust was driven by co-portfolio managers Ian Lance and Nick Purves who have remained staunch UK-focused value investors, a strategy that has
Temple Bar has secured the number one ranking in the UK Equity Income Sector across one, two, three, and five-year periods according to Citywire data.
Within the AIC’s UK Equity Income peer group, the Trust ranked first out of 17 constituents over both three and five years, with NAV total returns of 84.3% and 189.7% respectively—substantially ahead of the peer group median of 17.9% and 60.3%.
The Trust’s discount to NAV, which existed at the point of Redwheel’s appointment, has closed entirely and now trades at a premium. In September 2025, Temple Bar achieved a significant milestone by reaching a market capitalisation of £1 billion for the first time in its history.
Despite the strong performance this year, managers believe the UK remains undervalued, suggesting further opportunity for investors.
Commenting on their commitment to undervalued UK shares, Ian Lance and Nick Purves, co-portfolio managers, Temple Bar, said: “We believe that low valuation usually precedes a period of above average returns. Today the UK equity market appears to be very undervalued relative to its long-run history and other equity markets and, within the UK, the dispersion between value and growth is close to its widest point for fifty years. Both factors suggest that the Trust can continue to enjoy strong returns as M&A, share buybacks and investors recognising their overexposure to the US continue to catalyse this value.
“Recent negative sentiment towards the UK has resulted in UK listed stocks being valued at a significant discount to their overseas listed peers for no reason other than they happen to be listed in the UK. This has also seen corporate buyers – taking a longer-term view – stepping in to take advantage of this and was reflected in the trust’s portfolio where several holdings have fended off bids.”
According to the AIC, the UK stock market comeback has boosted the performance of the UK Equity Income investment trust sector, which has returned 14% over the last year, an impressive 79% over the last five years and 105% over ten years.”