Invest | Home Investor Fund - Residential Property Investment for everyone

Can I choose which properties I invest in?

No.

The pooled nature of the fund means that investors do not have direct ownership of or influence over decisions to buy and sell underlying properties. Instead each investor gets investment exposure to all properties the fund owns.

By choosing different property types across a variety of locations with a large number of tenants, Hearthstone’s highly experienced team is able to better manage the investment risk for you compared to choosing one or two properties. We are specialists in residential property investment and through close relationships with estate agents and housebuilders, and careful property selection and management, we aim to secure the best properties at the lowest cost to offer the potential for attractive, stable investment performance.

Do I have to be a UK citizen to invest through the online portal?

Yes. The online portal provided by WealthKernel only accepts customers over the age of 18 who live in England, Scotland, Wales, Northern Ireland, or the Channel Islands. You will be asked to provide a valid National Insurance number during signup. Note that you should only open a Stocks and Shares ISA if you are resident in the UK and have not opened one this tax year. Otherwise please open a regular account.

If you’re unable to invest via the online portal, you may still be able to invest through a third-party platform or through your financial adviser. You may also contact us for an application form to invest directly into the fund.

TM home investor fund does not accept US citizens, regardless of the potential method of investment.

Can I invest via a SIPP?

The TM home investor fund enables holding residential property within a Self Invested Personal Pension (SIPP), although this option is not currently available through the online portal provided by WealthKernel.

You can invest in a SIPP via many external investment platforms and SIPP providers.

Your financial adviser will also be able to advise you on how to invest in the fund through a SIPP.

Is there a maximum age to invest?

No, there is no maximum age.

How much can I invest?

Minimums for retail share classes are usually £50 per month or £1,000 lump sum. Some online investment platforms may allow you to invest smaller amounts.

Maximum limits apply to investment through ISAs and through pensions (including Self Invested Personal Pensions, or ‘SIPPs’).

The personal limit for ISAs a tax year (as of 2018/19) is £20,000. This can be split between a Stocks & Shares ISA, a Cash ISA*, a Lifetime ISA (maximum £4,000) and an Innovative Finance ISA*. You can open one of each type of ISA each tax year.

Other product providers and online platforms offer the fund via personal pensions, SIPPs and ISAs, and you can also speak to your financial adviser.

The above should not be considered financial or tax planning advice, or advice to invest in any particular investment vehicle or fund.

Taxation information is based on Hearthstone’s understanding of legislation in force as at July 2018. Legislation may change, and tax and trust law may be open to differing interpretation. The impact of taxation will depend on individual circumstances. Potential investors should seek advice from their financial adviser or tax specialist before investing.

The prospectus contains more information on taxation within TM home investor fund and taxation in the hands of the investor. Please contact us if you would like a copy.

How do I invest?

You can investment via many external investment platforms, ISA managers, SIPPs, or through your financial adviser. You may also contact us for an application form.

Why should I invest?

TM home investor fund offers an affordable way to invest in UK private rented property, a popular and long-established asset class in the UK. The fund aims to grow your investment over the medium- to long-term, using the professional buying power and property management expertise of Hearthstone’steam of residential investment specialists to maximise returns. Rental income, after property management costs and fund charges, is also reinvested into the fund.

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.

People invest in the fund for lots of different reasons including to help manage the risk of an existing portfolio of equities, bonds and commercial property; as a way of helping their money keep pace with property prices when saving for a house or to keep a foot on the property ladder whilst living abroad; or to create a nest-egg for retirement.

I own a property, why should I invest in this fund too?

Most investors are underweight residential property – their own house is not part of their investible assets and is usually purchased because it suits their lifestyle, not because of the investment returns it might generate.

A professionally managed portfolio of private rented flats and houses can provide real diversification, alongside long-term capital growth or consistent income returns, within a portfolio of other assets such as equities, fixed income and commercial property.

As a large investor in residential property, the fund is also able to spread the risk of property ownership rather than it being concentrated in one or two properties in a single area. TM home investor fund invests in flats and houses of various sizes across England, Scotland and Wales to broadly reflect the UK (excluding Northern Ireland) housing market in terms of regional distribution and property type. Preference is for new or modern properties to keep maintenance and management costs as low as possible and which will attract reliable long-term tenants in strong performing rental locations with an active re-sale market to give the best potential returns.

The fund can also be used to meet specific requirements, such as an alternative to buy-to-let or to ensure money keeps pace with house price inflation for those saving for a house, to help their children/grandchildren on the housing ladder, or for expats currently living abroad.