Investment Trust Dividends
Current earned income £8,643
Current xd cash £1,307
Total £9,950
Current cash £931. To buy shares that pay a dividend and use those dividends to buy more shares that pay a dividend.
Current income target for this year is for the year 2031.
Next years target will be for the year 2030.
Harvey Jones shows how investors can use a SIPP to fund a comfortable retirement, supplementing it with an ISA to balance their tax bills.
Posted by Harvey Jones
Published 12 August
You’re reading a free article with opinions that may differ from The Twelfth Magpie’s Premium Investing Services.
I love my SIPP. The Self-Invested Personal Pension, to use its full name, has a terrific upfront advantage. Investors get tax relief on their contributions.
This means that every £100 that goes into SIPP only costs a basic rate taxpayer £80. That falls to £60 for a higher rate taxpayer (they have to claim the extra £20 via their tax return).
Because pension tax relief is paid right at the start, all subsequent growth is generated on that higher sum. Basically, you’re off to a flier.
When it’s time to start drawing the money in retirement, 25% can be taken entirely free of tax, what’s called the pension commencement lump sum.
In contrast to a Stocks and Shares ISA, further SIPP income withdrawals are taxable. But if you earn enough to claim 40% or 45% pensions tax relief while working, but pay just 20% income tax in retirement, you’re winning again.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
At The Twelfth Magpie, we encourage investors to build wealth by creating a balanced portfolio of FTSE 100 and FTSE 250 shares. So how much would you need in your SIPP to generate income of £7,777 a year?
The answer depends on the dividend yield on your shares.
Ideally, I’d recommend investing more than that. When your retirement comes, the bigger your pension the better. Supplementing a SIPP with a Stocks and Shares ISA also makes sense. That would allow you to tax blend taxable SIPP withdrawals with tax-free ISA ones, reducing your overall exposure to HMRC.
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
(“FGEN” or the “Company”)
Net Asset Value and Dividend Update
The Board of FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, announces its unaudited Net Asset Value (“NAV”) and dividend for the quarter ended 30 June 2026.
Highlights
· Positive NAV total return delivered: NAV total return of 1.4% for the quarter, demonstrating the resilience of the Company’s diversified portfolio despite softer power price forecasts.
· Total Shareholder Return (“TSR”): TSR of 28.2% for the quarter, reflecting increased investor recognition of FGEN’s differentiated strategy, the resilient portfolio and progressive dividend policy.
· Stable NAV supported by operational performance: NAV of £652.4 million (31 March 2026: £655.5 million), with NAV per share of 104.7 pence. Positive valuation movements and portfolio performance largely offsetting the impact of lower power price assumptions.
· Strong cash generation underpinning dividend target: The portfolio continues to generate robust cash flows, with dividend cover expected to remain within the Company’s target range of 1.2x to 1.3x, post project debt amortisation.
· Quarterly dividend declared in line with target: Quarterly dividend of 2.01 pence per share declared, maintaining progress towards the Company’s full-year dividend target of 8.04 pence per share.
· Prudent balance sheet maintained: Gearing remained amongst the lowest in the sector at 29.2% as at 30 June 2026 (28.8% at 31 March 2026), providing financial flexibility to support disciplined capital allocation.
· Well positioned for organic NAV growth: the Board remains focused on delivering the Company’s progressive dividend strategy, alongside NAV growth through consistent operational performance, value enhancements and selective capital recycling.
Stephanie Coxon, Chair-designate of FGEN, said: “FGEN has delivered another strong operational quarter, underpinned by the resilient performance of our highly cash-generative, diversified environmental infrastructure portfolio.
lt is encouraging to see the quality of our assets recognised, with FGEN delivering a 28.2% TSR during the period and a partial rerating in our share price. Whilst the wider renewable infrastructure sector continues to face headwinds, the Board believes that an 18.8%¹ discount to NAV continues to undervalue the Company and its underlying assets.
The breadth and quality of our distinct portfolio remain the Company’s true differentiator that supports our confidence in its future and our ability to continue delivering shareholder returns, as reflected in the declaration of today’s quarterly dividend of 2.01 pence per share.”
Summary of changes in NAV:
| NAV per share | |
| NAV at 31 March 2026 | 105.2p |
| Dividends paid in the period | -2.0p |
| Power price forecasts | -1.3p |
| Other movements (including discount rate unwind less fund overheads) | +2.8p |
| NAV at 30 June 2026 | 104.7p |
Valuation factors
Power price forecasts
Independent market forecasts for power and gas prices softened during the period, contributing to the overall 1.3p decrease in NAV per share. The principal driver was a reduction in short to medium-term power price assumptions, reflecting improved stability in energy markets and lower uncertainty surrounding gas supplies. Long-term power price assumptions remain broadly unchanged. Since 30 June 2026, near-term power prices have strengthened, however, these movements are not reflected in the period-end valuation.
Gearing
In line with the Company’s stated approach to capital allocation, FGEN continues to maintain one of the lowest levels of gearing in the sector. As at 30 June 2026, total gearing was 29.2% (31 March 2026: 28.8%), with the Company’s Revolving Credit Facility (“RCF”) £128.5 million drawn.
Portfolio performance
Overall, the portfolio performed broadly in line with expectations over the quarter. The renewable energy generation portfolio was a notable highlight, with generation 3.8% ahead of budget, supported by strong output from the anaerobic digestion and biomass portfolios.
Dividend
The Company declares a quarterly interim dividend of 2.01 pence per share for the quarter ended 30 June 2026, consistent with the full-year target of 8.04 pence per share for the year to 31 March 2027, as set out in the 2026 Annual Report. This equates to a yield of 9.4% on the closing share price on 11 August 2026.
Dividend Timetable
Ex-dividend date 3 September 2026
Record date 4 September 2026
Payment date 25 September 2026
The SNOWBALL, no longer holds FGEN, the current profit is £3,317.20.
The current yield is 9.3% so a share I would consider, maybe, buying back.
Discount to Nav 18%,
Despite rising market volatility, equity ETFs continued to be popular picks with investors last month. Which ETFs and sectors saw the biggest inflows?
By Dan McEvoy
Published 16 hours ago
While equity markets stuttered in July – the MSCI World Index, which represents 85% of the total market capitalisation of each developed market in the world, grew just 0.5% during the month – flows into exchange-traded products were strong.
European-listed exchange-traded funds (ETFs) and exchange-traded commodities (ETCs) attracted flows of €47.3 billion in July, up 28.5% from €36.8 billion the previous month, according to data from investment research firm Morningstar.
Fund flows can give a broad indication of how investors feel about the market at a given point of time, though there is of course no guarantee that this will continue in future.
Among European-listed ETFs, those focusing on equity investing attracted €34.2 billion in flows during July, up from €29.9 billion in June. ETFs tracking bonds attracted €8.8 billion in July, up from €7.7 billion in June.
FromMoneyWeek
“Despite a softer month for US equities, money continued to flow into both global and US-focused equity [ETFs], reflecting investor conviction in the long-term artificial intelligence and technology-led growth story,” said Jose Garcia-Zarate, senior principal at Morningstar. “Investors largely treated market weakness as a buying opportunity, continuing to allocate capital to growth-oriented exposures.”
While ETF flows remained strong in aggregate, there was some divergence between the allocations towards different styles of fund.
Blend equity ETFs (those holding a combination of value and growth stocks) saw some of the largest inflows among Europe-listed equity ETFs during July, according to Morningstar’s analysis.
Global large cap blend equity ETFs attracted €10.1 billion in flows during the month, followed by US large cap blend equity at €8.6 billion.
While ETFs that contained a blend of US large- and small-caps saw the largest flows, their counterparts that focused on either growth or value saw divergent flows. ETFs targeting US large cap growth stocks were among those that saw the largest outflows (€1.4 billion worth), but US large cap value ETFs saw outflows of €117 million.
| Top 10 | Net flow (€ million) | Bottom 10 | Net flow (€ million) |
|---|---|---|---|
| Global large cap blend equity | 10,108 | US large cap value equity | -117 |
| US large cap blend equity | 8,584 | Brazil equity | -149 |
| Global emerging markets equity | 3,574 | Asia ex-Japan equity | -197 |
| Japan large cap blend equity | 1,844 | Latin America equity | -213 |
| Global equity income | 1,571 | Germany equity | -248 |
| US large cap growth equity | 1,414 | China equity | -382 |
| Sector equity financial services | 1,374 | US small cap equity | -395 |
| Europe large cap blend equity | 1,148 | China equity – A shares | -422 |
| Sector equity technology | 1,120 | Europe ex-UK equity | -442 |
| Other equity | 873 | Global large cap value equity | -539 |
Source: Morningstar Direct. Data as of 31 July 2026.
“Interestingly, we saw little evidence of a meaningful rotation into defensive or value strategies during the pullback,” said Garcia-Zarate.
The ETF sectors that saw the largest outflows were global large cap value, which saw outflows of €539 million, and Europe ex-UK with €442 million in outflows.
Vanguard’s FTSE All-World UCITS ETF (LON:VWRP) topped the list of ETFs seeing the largest inflows during July, with €3.3 billion flowing into the fund. iShares MSCI Japan ETF (LON:IJPN) came second, with €1.6 billion inflows.
State Street SPDR MSCI World ETF (LON:SWLD) saw the largest outflows, at €1.9 billion, followed by Xtrackers S&P 500 Swap ETF (LON:XSXG) which registered €981 million outflows.
| Top 10 | Net flow (€ million) | Bottom 10 | Net flow (€ million) |
|---|---|---|---|
| Vanguard FTSE All-World ETF | 3,308 | iShares Edge MSCI World Value Factor ETF | -328 |
| iShares MSCI Japan ETF USD Dist | 1,571 | Xtrackers MSCI World Value ETF | -334 |
| UBS Core MSCI EM UCITS ETF | 1,453 | iShares MSCI China ETF | -434 |
| iShares Core MSCI World ETF | 1,179 | Ossiam Lux Ossiam Shiller Barclays Cape US Sector Valu | -467 |
| UBS MSCI ACWI Climate Paris Aligned ETF | 1,145 | L&G Europe ex-UK Equity ETF | -522 |
| Xtrackers S&P 500 Swap II UCITS ETF | 1,039 | State Street SPDR S&P 500 Quality Aristocrats ETF | -734 |
| iShares CORE MSCI EM IMI ETF | 977 | iShares Edge MSCI USA Value Factor ETF | -773 |
| Xtrackers S&P 500 Equal Weight ETF | 960 | UBS MSCI ACWI Socially Responsible ETF | -957 |
| State Street SPDR MSCI All Country World ETF | 947 | Xtrackers S&P 500 Swap ETF | -981 |
| Xtrackers S&P 500 ETF | 862 | State Street SPDR MSCI World ETF | -1,887 |
Source: Morningstar Direct. Data as of 31 July 2026.
The data on flows into European-listed ETFs and ETCs was consistent with the picture that global ETP flows painted.
Global flows into exchange-traded products (ETPs) – which includes ETFs and ETCs – hit a record $362.6 billion in July, according to data from asset manager BlackRock.
BlackRock’s analysis showed that flows into equity ETPs rose for the third consecutive month to $64.8 billion.
Tech-focused ETPs saw higher flows than any other sector. Flows into tech ETPs reached a record $60.5 billion in July, smashing through the previous record of $32.0 billion, set the previous month.
By Tim Plaehn, Investors Alley, Friday, August 7
Rithm Capital (RITM) is a company that has tremendously expanded its business over the last few years, but that growth has not shown up in its share price. I believe investors will eventually realize that this company should have a much higher share price. Maybe you can help.
Known as New Residential Corp when it launched in 2013, Rithm Capital started as a finance real estate investment trust (REIT), investing in mortgage servicing rights (MSRs) and other mortgage-related securities. Until the pandemic, the company was a steady dividend growth REIT.
The pandemic forced the company to slash its dividend by 90%, from $0.50 quarterly to $0.05. The dividend started growing immediately, but topped out at $0.25 in September 2021. It has stayed at that level since.
The bigger changes at Rithm Capital have been the expansion of its business operations into a diversified asset management company. Here are the currently owned businesses:
Asset-generating businesses are those with $54 billion under management.
Alternative Asset Management businesses are those with $61 billion under management.
● Sculptor Management was acquired for $720 million in November 2023.
● Crestline Management L.P., with $20 billion under management, was acquired on December 1, 2025.
Rithm Capital is now a multi-business company with $120 billion in assets. The company is very profitable. For the 2026 second quarter, earnings available for distribution (EAD) of $0.60 per share nicely exceeded the Wall Street consensus of $0.50. The company beat estimates for 17 out of the last 19 quarters. Analysts are consistently wrong about Rithm’s earnings potential.
Rithm Capital’s second-quarter book value was $12.33 per share.
Currently, RITM trades for $9.90, a 20% discount to the book value. The share price is down 20% over the last year, despite the tremendous profits. The $1.00 annual dividend is more than 200% covered.
My theory is that investors still view Rithm Capital as only operating as a finance REIT. The diversified businesses are not reflected in the share value.
If RITM traded for 1.2 times book, it would be at $15 per share. If it traded at 10 times annual EAD, it would be over $20.
Fortunately, this stock offers a 10% yield on its very stable dividend.
Foresight Solar Fund Limited
Trading Update, Q2 2026 Net Asset Value
Foresight Solar, the fund investing in solar and battery storage assets to generate income and deliver long-term growth, announces its unaudited net asset value (NAV) was £517.9 million at 30 June 2026 (31 March 2026: £543.0 million). This results in a NAV per ordinary share of 94.9 pence (31 March 2026: 99.2 pence).
Summary of key changes to NAV
| Item | p/share movement |
| NAV on 31 March 2026 | 99.2p |
| Interim dividends paid | -2.0p |
| Time value | +1.9p |
| Discount rate adjustment | -1.4p |
| Inflation assumptions | +0.9p |
| Project actuals | -1.3p |
| Power price forecasts | -1.1p |
| Carbon Price Support (CPS) removal | -0.5p |
| Share buyback programme | +0.1p |
| Other movements | -0.9p |
| NAV on 30 June 2026 | 94.9p |
Inflation assumptions
UK inflation assumptions also moved higher, with RPI and CPI now expected to be 3.5% and 3.0% in 2027, respectively. From 2028 to 2030, RPI is forecast at 3.0% and CPI at 2.5%, before easing to 2.4%1 and 2.25%, respectively, from 2031. The updated assumptions added 0.9pps to NAV.
Project actuals
Project actuals reduced NAV by 1.3pps, primarily reflecting the timing of cash receipts, payments and power price hedging settlement related to the UK portfolio, as well as lower-than-budgeted generation in Spain and Australia during the second quarter.
Power price forecasts
Updated forecasts from independent market consultants reflected lower near-term power price expectations across Foresight Solar’s markets, following an easing of geopolitical risk during the period, as well as wider UK solar capture price discounts in the long term. Overall, this reduced NAV by 1.1pps.
CPS removal
The UK government announced earlier this year that it will remove the Carbon Price Support mechanism from April 2028. The move is intended to reduce wholesale electricity prices for consumers and industry in the medium term. The change reduced NAV by 0.5pps, in line with the Company’s estimate of between 0.5pps and 1.0pps disclosed at the time of the government’s announcement.
Share buyback programme
Foresight Solar continued to buy back its shares, adding 0.1pps to NAV in the second quarter of 2026. More than £56 million of the £60 million programme has been deployed, delivering a cumulative NAV uplift of 3.4pps since repurchases began.
Other movements
Other movements, including foreign exchange, working capital movements and minor portfolio adjustments, resulted in a net negative impact of 0.9pps.
Independent valuation
Given the persistent share price discount to NAV and the limited number of recent comparable market transactions, the Board commissioned an independent third party to undertake a review of the valuation of the Company’s UK operational solar portfolio. The review considered the valuation methodology, key assumptions and supporting market evidence, and concluded that the valuation is within a reasonable range of fair values.
Trading update
Above-budget production in the UK was partly offset by higher-than-expected curtailment in Spain and below-forecast irradiation in Australia. Overall, global production for the quarter was 3.6% under budget, with solar resource 4.7% above expectations.
In the six months to 30 June 2026, global portfolio generation was 5.6% lower than forecast and irradiation was marginally above budget.
Taking advantage of the macro environment, the investment manager continued to actively manage the Company’s power price hedging strategy. Global contracted revenues are now 84% for 2026, 82% for 2027 and 64% for 2028 of forecast total revenues for each year, with average UK prices at £75.48/MWh, £72.14/MWh and £75.05/MWh for those years, respectively.
Since the end of the second quarter, UK day-ahead electricity prices have risen in reaction to consecutive heatwaves, low wind output and tighter gas markets. Middle East tensions have added pressure to natural gas prices. Solar generators are likely to benefit from these factors, as well as from the sunniest month on record in July, according to the Met Office.
Gearing
The gross asset value (GAV) on 30 June 2026 was £908.0 million (31 March 2026: £931.5 million), with total outstanding debt of £390.1 million, which represented 43.0% of GAV (31 March 2026: £388.5 million and 41.7%) – comfortably within the 50% limit. The modest increase in gearing reflects seasonal working capital requirements.
Interim results date
Foresight Solar expects to publish its interim results for the six months to 30 June 2026 on 15 September 2026. A Notice of Results with more details will be released in due course.
The SNOWBALL bought VPC special lending investments (VSL)
10K on the 28/04/23. VPC paid dividends at a yield of 10%.
They then decided to wind up the trust and the brown stuff hit the fan, currently showing a loss on capital of £4,704.00.
They have returned £4,002 in dividends and return of capital, this has been re-invested back into the portfolio. If the SNOWBALL had re-invested back into VPC the loss would have been greater, one reason to be wary if you CPA.
The cash re-invested has earned around 1k in dividends, and VPC are still paying two dividends a year and trade at a 50% discount to NAV, most of this discount may be eaten up in costs so the final figure may be around another 1k of income. If you deduct the 2k, the loss is now around 2.7k. It will take around another 6 years of dividend income from the re-invested income, after that it will be all profit. When VPC finally winds up, the returned cash will be re-invested back into the SNOWBALL.
If you buy a share and it turns out to a clunker just after you bought, you should sell and try to learn what was wrong with the buy. The more you trade, the more chances, one day, you will buy a clunker.
Thursday 13 August
Baillie Gifford UK Growth Trust PLC ex-dividend date
BlackRock American Income Trust PLC ex-dividend date
Greencoat UK Wind PLC ex-dividend date
ICG Enterprise Trust PLC ex-dividend date
International Public Partnerships Ltd ex-dividend date
Majedie Investments PLC ex-dividend date
NextEnergy Solar Fund Ltd ex-dividend date
Octopus Renewables Infrastructure Trust PLC ex-dividend date
Pershing Square Holdings Ltd ex-dividend date
Renewables Infrastructure Group Ltd ex-dividend date
Rentokil Initial PLC ex-dividend date
Scottish American Investment Co PLC ex-dividend date
Target Healthcare REIT PLC ex-dividend date
Tritax Big Box REIT PLC ex-dividend date
If you read the previous TMPL posts and think that investing is easy, think again.
From the chart after 4 years, you are printing a loss, including earned dividends, which would have been better being re-invested in your Snowball.
Then more sideways, then you are finally rewarded for your patience, should you book part profits ? GL
Temple Bar (TMPL) turned 100 earlier this year but shows no signs of slowing down. Its one-, three-, and five-year returns are at or near the top end of its peer group, the dividend continues to climb, and the managers continue to swim against the tide, finding interesting and attractively valued stocks in a UK equity market that is itself cheap relative to peers.
The composition of TMPL’s portfolio is always evolving. The managers are taking profits from financials, adding formerly highly-rated consumer staples stocks, and assessing opportunities in IT services. This cycle of portfolio renewal provides the foundation for future outperformance. Long may it continue.
TMPL aims to provide growth in income and capital to achieve a long-term total return greater than its benchmark (the FTSE All-Share Index), through investment primarily in UK securities. The company’s policy is to invest in a broad spread of securities, with the majority typically selected from the FTSE 350 Index.
Source: Bloomberg, Marten & Co
You can access the trust’s website at: templebarinvestments.co.uk
TMPL aims to provide growth in income and capital to achieve a long-term total return greater than its benchmark (the FTSE All-Share Index), through investment primarily in UK securities. The company’s policy is to invest in a broad spread of securities with most holdings typically drawn from the FTSE 350. We have substituted the MSCI UK Index for the FTSE All-Share in this note.
TMPL’s AIFM is Frostrow Capital LLP, and it has delegated responsibility for portfolio management to RWC Asset Management LLC (Redwheel). Redwheel has been managing the trust since 1 November 2020. The lead managers are Nick Purves and Ian Lance (see page 16).
Looking for a disconnect between share prices and underling intrinsic value
Their investment approach is based on the principle that investors tend to overreact to news, becoming overly bullish or overly pessimistic about the prospects for companies and markets. This creates a disconnect between the intrinsic value of a company and its share price, which long-term, value-driven investors can take advantage of as sentiment swings back in their favour.
Avoiding value traps by favouring good quality companies
Care needs to be taken to avoid “value traps” – businesses which look cheap but are in structural decline. Instead, the managers target undervalued but good-quality companies (those with strong cash flows and robust balance sheets). These businesses are better able to withstand cyclical downturns and recover from short-term, company-specific issues. The approach recognises that aspects of ESG can have a profound impact on a company’s long-term success.
TMPL has given the managers the flexibility to invest up to 30% of the portfolio in overseas stocks. The chair noted in his most recent statement that the board and manager monitor the size of the investment universe, particularly as the UK market shrinks through takeovers and a lack of issuance. The board is monitoring the situation with a view, if necessary, to asking shareholders to increase that 30% limit.
Recent data published by Peel Hunt and E&Y highlighted that there were 28 proposed takeovers of UK companies with a total value of £59.7bn over H1 2026, which compares to seven listings raising £577m. However, for the moment, the managers believe that they have a large enough opportunity set within the UK to meet the objective.
100 years old on 24 June 2026
On 24 June 2026, TMPL was 100 years old. That means it has survived the Wall Street Crash, the second World War (and many others since), 70s inflation, 80s recession, the tech boom and bust, the 2008 financial crisis, and COVID and its aftermath. The trust has not always had a value focus – at launch it was “The Cable, Telephone and General Trust” – but whilst it did not adopt its current name until 1977, it already had a UK equity income focus by then. TMPL’s focus on dividend yield makes it a value investor.
At this year’s AGM and in a separate video on the subject, Redwheel took the opportunity to look at the long-term case for value investing.
Over almost a century, value outperformed in every decade bar one
Figure 1 is taken from the video and shows the annual returns of US equities, based on holding stocks that look cheaper than market averages on a book to price basis (the inverse of price to book, which is perhaps the more normal way of looking at this) and shorting the more expensive ones, over the 92 calendar years to the end of 2022. This value approach does not outperform every year, but it is a winning strategy over every decade bar the 2010s, when governments and central banks manipulated interest rates to unsustainably low levels.
Source: Kenneth R. French Library, Morgan Stanley Research, Performance of Value Factor (Book Yield) since 1926, Morgan Stanley, 27 May 2022. The table shows a long-short value strategy in the US Quintile 1 – Quintile 5, book to price rebalanced annually.
Figure 2 – which is based on the performance of UK value stocks, this time selected on the basis of their dividend yield – reinforces this message. The scale on the y-axis is logarithmic; consistently investing in high-yielding stocks and reinvesting your dividends meant that would have made 21x the return of a portfolio focused on low-yielding stocks over that 125-year period.
As Figure 3 shows, UK equities had a good run over 2025, but progress has stalled since the outbreak of war between the US, Israel, and Iran. Fears about the impact of higher energy costs on inflation compounded concerns about the fiscal profligacy of the Labour government, putting upward pressure on UK borrowing costs – as illustrated by UK 10-year gilt yields in Figure 4.
The revolving door at 10 Downing Street may have had some impact on sentiment towards the UK market. However, economically things have been better than some expected. UK GDP growth was 0.6% in Q1 2026 and roughly flat over April and May. UK base rates are unchanged this year. UK inflation, as measured by CPI, came in at 2.6% for the 12 months to the end of June 2026, lower than some had forecasted.
Oil prices surged in March before easing over the next few months as both sides adopted a more conciliatory tone. That weighed on TMPL’s energy stocks, but the managers had taken some profits when share prices spiked following the outbreak of the Iran war.
More recently, renewed hostilities have pushed on oil and gas prices higher again, with stockpiles dwindling, the situation may now be more serious. EU gas prices are hitting new three-year highs, for example.
UK equities remain cheap on a range of valuation multiples
Nevertheless, UK equities remain cheap on a range of valuation multiples when compared to peers, as Figure 5 shows.
| P/E (current)(x) | P/E (FY26)(x) | P/E (FY 27) (x) | Price/book (FY26) (x) | EV/EBITDA (FY26) (%) | Dividend yield (FY26) (%) | |
|---|---|---|---|---|---|---|
| MSCI UK | 15.11 | 13.45 | 12.84 | 2.30 | 8.41 | 3.93 |
| MSCI Europe ex UK | 18.37 | 16.96 | 15.42 | 2.41 | 11.59 | 2.94 |
| MSCI AC Asia ex Japan | 19.04 | 12.13 | 9.62 | 2.17 | 9.30 | 2.16 |
| MSCI Japan | 19.79 | 17.56 | 15.60 | 1.87 | 9.10 | 2.12 |
| MSCI USA | 25.87 | 21.59 | 18.87 | 5.13 | 15.37 | 1.14 |
Source: Bloomberg as at 31 July 2026
It is often claimed that the reason that UK equities look cheap is the relative absence of stocks in highly-rated sectors such as information technology. However, as Figure 6 shows, UK stocks are cheaper than global averages in almost every sector.
A wave of bids for UK companies underscores this sense that UK equities are undervalued. In 2026 we have seen takeover offers for Schroders, easyJet, Rotork, Tate & Lyle, UK Power Networks, Beazley, Intertek, Senior, Mitie, and SEGRO.
At the end of June 2026, there were 40 holdings in TMPL’s portfolio. The average yield on the portfolio at the end of June was 4.1%, which compares to 3.1% for its benchmark. The average current year P/E ratio on the portfolio was 9.7x, which compares to 12.7x for the index and the figures for price/book were 1.2x and 2.0x, respectively.
TMPL’s geographic and sector exposures are driven by the managers’ stock selection decisions and market movements.
Since we last published, using data as at 30 November 2025, the portfolio has had more exposure to the US and consumer staples, and less exposure to cash and materials.
Since we last published using data as at 30 November 2025, Barclays and Smith & Nephew have both dropped out of the list of the 10 largest holdings, to be replaced by Marks & Spencer and GSK.
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