Temple BAR Investment Trust plc

Global equity markets delivered divergent returns in July 2026, dominated by a re-escalation of the US-Iran conflict and its knock-on effects on energy prices, and the reversal in the AI and semiconductor trade due to concerns about valuations and capex intensity. Brent crude rose 24% during the month, bringing back inflationary concerns. Major central banks kept policy rates unchanged in July. The FTSE All-Share returned +3.7%, supported by its energy and commodity exposure. The S&P 500 was broadly flat (-0.1%) and the Nasdaq fell 3.2%, weighed by technology sector weakness.

The Trust provided a strong positive return during the month and outperformed the benchmark. Outperformance was broad-based at the sector level. Energy names were the largest absolute contributors to performance, benefitting from the oil price rally. The overweight in Communication names contributed positively to relative return, as did stock selection within the Consumer Discretionary sector. Industrials and Utilities were detractors from performance.

At a single stock level, WPP was the largest contributor to performance. The advertising group's shares rose +26.7% during July, supported by the announcement of expansion plans for its WPP Enterprise Solutions unit, and short-covering activity. Energy companies BP and Shell were also contributors, rising 18.3% and 15.4% respectively, benefitting as the price of Brent crude rose following the breakdown of the US-Iran ceasefire in early July.

ITV was the largest detractor from performance, with its share price falling 7.9% in the month. Shares declined following the announcement of the sale of its Media and Entertainment arm to Sky for up to £1.6 billion; first half results released at the end of the month missed estimates. Airline group, IAG was also a detractor impacted by the increasing oil price. Results released at the end of the month showed the group revising full-year capacity outlook to flat and predicting a €8.6 billion fuel bill driven by the Middle East conflict. Centrica's share price fell following results in which first-half earnings declined and broader job cuts were announced.

In a world of heightened geopolitical uncertainty, the Trust remains invested in what we believe are fundamentally sound businesses, capable of growing profits over time yet still modestly valued by the markets.