Fund Performance Factsheet – June 2020

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

Please note all dealing in the Fund is currently suspended. More information and latest updates can be found in the blog.

Fund Performance Factsheet – June 2020

Following nearly three months of lockdown we are seeing “light at the end of the tunnel”. As reported last month, on 18th May estate agencies in England reopened and although all expectations were for a cautious start, this appears not to have been the case at the time of writing. Zoopla’s latest data states that sales agreed were up 4% by mid-June, with demand up 46% on March 2020 and supply 15% lower than June 2019. This relative lack of supply is maintaining pricing, with asking prices up 7% year on year and Zoopla’s UK House Price Index up 2.4%. Similar dynamics exist within the lettings market with demand up 60% on March 2020 whilst supply up ‘only’ 36% – leading to a 1.5% increase in the ONS rental index.

Over recent weeks the RICS has suggested that the Material Valuation Uncertainty clause may not be appropriate for all property sectors – their most pertinent update on 11th June recommended removing the clause from valuations of “Build to rent residential property of institutional grade, which is professionally managed”.  Whilst this doesn’t apply to this fund due to its valuations are more correlated to the owner-occupier market, the Fund’s Standing Independent Valuer, CBRE, is closely monitoring the recovery in property transaction levels.

The Fund’s June property valuation was up 0.06% on May, based on post-lockdown property transaction evidence. Portfolio occupancy at the end of June was c.92%, with a net increase in occupied units of +4. During June we have agreed lets on 12 units within the fund, 8 of which have now moved in, and 4 are undergoing referencing. These lettings are c.1% above the previous rental prices. Approximately 95% of rent demanded in June was received, slightly down on May but still very positive compared to other property sectors. We are 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 most of our tenants want to pay their rent in full and, once in receipt of government financial aid, they immediately settle their arrears.


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).