Fund Performance Factsheet – July 2020

We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.

Fund Performance Factsheet – July 2020

As per the 19th July, triggered by a confirmation from CBRE in line with RICS guidance that the Material Valuation Uncertainty Clause for UK residential property can be removed, the Fund re-opened for dealing. Last month I talked about how the re-opening of estate agencies has led to increased demand – this has now been translated into actual deals, with agreed house sales 32% ahead of last year (according to Zoopla), and transactional data seemingly being boosted further by the recent SDLT holiday announcement by The Chancellor on 8th July 2020. Furthermore, Rightmove’s research indicates that average asking prices of property coming to market in Britain hit a record, 2.4% higher than in March pre-lockdown, whilst the 3.7% annual rate of increase is the highest since December 2016. In a further sign of a return to normality, HM Land Registry started publishing transaction figures for the period of March to June. Based on that still limited dataset, LSL Acadata reported an annual house price change of + 0.9% to May 2020.

The Fund’s July property valuation was up 0.21% on June’s following more transactional evidence being available to the valuer, and the inclusion of the final two purchases at Smethwick contributing 0.04% of this uplift (the purchase of these and the previous eleven units have provided a total uplift of 0.06% due to the discounts we negotiated with the developer). The Fund’s occupancy at the end of July was slightly down at c.89%, a net decrease in the number of occupied units of 7 due to a number of tenancies expiring at the end of the month and two new purchases. We expect these empty units to let quickly with the renewed activity and demand within the market. The Fund collected 102% of rent demanded in July, bringing the average rent collected over the period of the Fund’s suspension to c.97.5%. We are continuing working very hard alongside our property managers Touchstone to help any tenants that have been impacted by Covid-19, setting up payment plans, deferring rent reviews and agreeing rent holidays where appropriate. It is encouraging that Tenants are starting to pay off their arrears, which we believe is a sign of confidence in the economy going forwards and their job stability. This really does demonstrate the resilience of residential property as an asset class.


Third-party platforms will have different classes available. A selection of platforms and the available classes are shown below, but please contact us if the online platform you use is not shown.

Please note that Hearthstone is not able to provide financial advice, and the information on this page should not be taken as advice to invest in the fund, or as to the suitability of the fund, a specific share class, or platform for your personal circumstances.

Halifax Share Dealing, Tilney Bestinvest, Charles Stanley Direct, iWeb:

     >   Unit Trust Feeder Fund (ISIN code GB00B95V2K41)

Hargreaves Lansdown (telephone/postal dealing only), Interactive Investor, Alliance Trust Savings, AJ Bell Youinvest:

     >  For pension/SIPP and ISA only: Class C (ISIN code GB00B95VYK84)

     >  For General Investment Account, pension/SIPP or ISA: Class D (ISIN code GB00B9608795)

Risk Warning

Investing involves risk. Investors should be aware that the value of an investment and the income from it can fall as well as rise, and they may not receive back the full amount they invest. Past performance is not a reliable indicator of future results.

The Authorised Fund Manager is Thesis Unit Trust Management Limited, Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. Authorised and regulated by the Financial Conduct Authority.

Hearthstone Investments Ltd is the parent company of the Hearthstone Investments Group. Regulated business is carried out by Hearthstone Asset Management Limited. Hearthstone Asset Management Limited is an appointed representative of Thesis Asset Management Limited which is authorised and regulated by the Financial Conduct Authority (114354).