What is TM home investor fund?

TM home investor fund is an affordable way to invest in private rented UK houses and flats, so you can enjoy the investment benefits of residential property, whatever your budget. The fund aims to grow your investment over the medium to long-term, using the professional buying power and property management expertise of Hearthstone’s team of residential investment specialists to maximise investment returns. Rental income, after property management costs and fund charges, is also reinvested into the fund.

By investing in private rented residential property, an asset class many are familiar with, the fund can offer a hassle-free and tax-efficient alternative to buy-to-let or help your money keep pace with property prices when saving for a deposit for your first home, or for your children or grandchildren.  It also offers real investment diversification in a portfolio of equities, bonds or commercial property because residential property acts differently to these other mainstream asset classes as market conditions change.

As for all investments, the value of shares in TM home investor fund can go down as well as up and you may get back less than you put in. 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.

Do I have to use a Financial Adviser to invest in TM home investor fund?

No, as the fund is authorised for retail investors, you don’t have to seek professional advice. If you’re comfortable with DIY investing you can invest yourself through your usual investment platform. You should always read the Key Investor Information Document and Fund Factsheet before investing.  If you are unsure about whether the fund is suitable for you, we would recommend you talk to an authorised financial adviser. You can search for free on www.unbiased.co.uk or www.mylocaladviser.co.uk to find a financial adviser near you.

Does the fund trade on a secondary market?

No. The fund is an Open Ended Investment Company (OEIC), so it can create additional shares for new investors to buy, or cancel shares when it buys them back from those who want to cash in their investment. This means there is no need for a secondary market.

In unusual market conditions, there may be a delay in withdrawing money if properties need to be sold. However, the fund aims to hold 10% to 15% of assets in cash to cover withdrawals and has a stream of rental income that can be used to meet withdrawals in the short term.

Who invests in TM home investor fund?

Investment returns from residential property tend to have little correlation to other mainstream asset classes, which means it acts differently to equities, fixed income and commercial property investments as market conditions change. TM home investor fund can, therefore, provide a useful way of diversifying your investment portfolio to spread the risk of investing. The fund is often recommended by financial advisers and we have many institutional investors who have invested pension fund money for exactly this reason.

People also invest in TM home investor fund with a particular goal in mind:

  • first time buyers saving for a house deposit
  • parents and grandparents wanting to help children onto the property ladder
  • expats aiming to keep a toe in the UK housing market
  • people looking for a hassle-free alternative to buy-to-let, as well as other more general investment aims

There are investors saving £100 each month and ones who’ve invested £1m or more.

Who’s behind the TM home investor fund?

Hearthstone Asset Management Limited, a subsidiary of Hearthstone Investments Ltd (‘Hearthstone’) is the Property Investment Adviser to the fund.  Hearthstone is a residential property investment specialist, which was founded in 2009 as the UK’s first fund manager to focus solely on residential property. Supported by a highly experienced team, it has successfully brought a range of investment funds to market for both individual and corporate investors. Through close relationships with estate agents and housebuilders and careful property selection and management, Hearthstone aims to offer attractive, stable investment performance while providing excellent accommodation and landlord services to the growing number of households looking to rent.

The ‘TM’ in the fund’s name signifies that Thesis Unit Trust Management Limited (TUTMAN) is the fund’s Authorised Corporate Director and has overall responsibility for ensuring the fund is operated in accordance with the Financial Conduct Authority’s regulations.

National Westminster Bank Plc (NatWest) is the fund’s Depositary and is responsible for overseeing TUTMAN’s operation of the fund.  NatWest is also responsible for the safeguarding of the assets of the fund and protecting the interests of incoming, outgoing and continuing investors.