The property valuer for the TM home investor fund, CBRE, announced that the Material Valuation Uncertainty Clause will be removed for residential properties going forward. As a result, the Fund’s Authorised Corporate Director, Thesis Unit Trust Management, in conjunction with the Depositary NatWest Trustee and Depositary Services Limited have lifted the suspension of dealing in units in the TM home investor fund with immediate effect.

What does this mean?

Investors can again purchase, redeem and switch units in the TM home investor fund (the Fund) as well as the TM home investor feeder fund (the Feeder). This change has been communicated to all investors and platforms.

A copy of the official communication can be found downloaded by clicking the image below.

Background

On 17^th March  dealing in the Fund and its Feeder was suspended following the announcement by all major property valuers in the UK that they would add a “Material Valuation Uncertainty” Clause to the March valuations for all property funds, regardless of the subsector. This was a direct consequence of the measures taken to contain the Covid-19 pandemic, which resulted in a collapse of property transaction volumes and gave insufficient data points to perform valuations. As far as data is available, residential property transactions dropped to circa 10% in April and have now recovered to circa 40-50% of normal levels since the gradual reopening of the UK housing market.

On Wednesday 8^th July, the Chancellor announced a Stamp Duty holiday for those buying houses valued up to £500,000 in England and Northern Ireland. This came into force immediately and will last until 31st March 2021. Similarly, the

thresholds for property transaction taxes are lifted to £250,000 in Scotland from 15^th July, and in Wales from 27^th July; both until 31^st March 2021.

This should provide further support to the market and thereby confidence to valuers in their ability to provide accurate valuations.

To read the June Market and Fund Update, please click here.

Important Information

This document is not a prospectus, invitation to invest or advice. Investors may get back less than the amount invested. Information on past performance is not necessarily a guide to future performance. The value of investments in the fund can go down, and there can be no assurance that any appreciation in the value of investments will occur.

Residential property values are affected by factors such as interest rates, economic growth, fluctuations in property yields and tenant default. Property investments are relatively illiquid compared to bonds and equities, and can take a significant amount of time to trade.

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). Hearthstone Investments Ltd (06379066) and Hearthstone Asset Management Limited (07458920) are both registered in England and Wales. The registered office for both companies is c/o Waterstone Company Secretaries Ltd Third Floor, 5 St. Bride Street, London, United Kingdom, EC4A 4AS.

Thesis Unit Trust Management Limited is the Authorised Corporate Director of the TM home investor fund. Authorised and regulated by the Financial Conduct Authority (186882).