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Bye bye
buy-to-let

The doors are open to a residential property fund to help hundreds of customers like you invest in a whole new way.

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Intelligent fund management

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Covered by the Financial Services Compensation Scheme

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Diversify your portfolio

Why own one property when you can invest in streetfuls?

We know you want to expand your investment portfolio and you may be considering buy-to-let. You want your money to be looked after and to be managed intelligently, but also for it to work hard. In today’s unpredictable climate though, many investments can be complex and difficult to understand. Buying a house or being a landlord comes with its own complications too.

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row houses
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Letting the experts do the hard work in property investing

The UK buy-to-let market can be a complicated space. Mortgage applications, tenancy deposit laws, tax, tricky tenants and leaky taps. TM home investor fund takes the hassle out of property investment. From finding the properties across the UK, to letting, maintaining and the eventual re-sale of them, it’s all managed by Hearthstone's expert team, adding diversity to your portfolio and leaving with you with more time to spend doing the things you love.

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A fund managed by a professional team

Hearthstone's investment team understands the UK residential property market. The TM home investor fund has delivered attractive returns to investors since 2012.

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Enjoy some real home comforts. Invest tax-free

You can make use of your ISA allowance to invest in the fund. There is no need to worry about recent tax changes imposed on buy-to-let landlords.

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Property investment without the hassle

Become a property investor without even buying a house. So no leaky taps and tricky tenants for you then.

Truly home sweet homes

TM home investor fund buys, lets, manages and sells residential property in mainland UK, and focuses on buying new or nearly-new properties to let at market rates.

Newer properties can mean lower maintenance costs, which should help improve performance.

Scroll down to view just some of the hundreds of properties owned by the fund.

The East Of England/Essex - Colchester, Riverside Walk at Rowhedge

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2-3 bedrooms

Most recently the Fund has agreed to buy eight new houses at Rowhedge, attractive riverside village four miles to the South East of the centre of Colchester. An attractive Riverside Walk (see photo) is within a minute of the development. The houses were purchased for an average price of just over £250,000, which represents a bulk discount for advance purchase of just over 10%.

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The East Of England/Essex - Colchester, Mansion House

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An attractive block of 16 flats built by Countryside Properties in 2008. The homes have all been let since new and are popular and have proved easy to let. These homes complement the Fund’s other investments in Colchester, and appeal to a different market than the houses. Salamanca Way is part of a large scale modern development about 3 miles to the South of the shopping centre and Station.

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West Sussex / Bolnore Village

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2 bedrooms

Bolnore Village is a large master planned community to the South of Haywards Heath. Since the first house was completed in 2002, the village has become a community in its own right, with shops, a primary school and Community Centre. The Fund purchased four large 2 bedroom flats in Henmead House, overlooking some of the woodland. The flats have parking directly beneath the block.

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The East Of England/Essex - Colchester, Riverside Walk at Rowhedge
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The East Of England/Essex - Colchester, Mansion House
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West Sussex / Bolnore Village

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Expand your portfolio FAQ's

Questions? We’ve brought together some answers to the most frequently asked questions here.

Who's behind the TM home investor fund?

Hearthstone Asset Management Limited, a subsidiary of Hearthstone Investments plc (‘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.

What does it cost?

Just like any other product or service, TM home investor fund is subject to charges and expenses which have the effect of reducing the potential returns of your investment. These include the costs of running the fund, as well as marketing and distribution costs.

The share class you can invest into through the online portal provided by WealthKernel has estimated ongoing charges (OCF) of 1.81% per year. This includes the Annual Management Charge of 1.1% plus other estimated variable expenses incurred in operating the fund. The variable expenses depend on things like the number of investors in the fund, property valuation fees and legal costs.

Of the 1.1% Annual Management Charge, 0.2% is paid to WealthKernel as a product fee to manage the service they provide, which includes the administration of your investment on their portal as well as the ongoing reporting to you.

There are no initial charges made on your investment through the online portal, so all of your money is used to buy shares in TM home investor fund. However, the costs of buying or selling properties (such as Stamp Duty Land Tax, disbursements, estate agent and legal fees) are factored into the share price. More information can be found in the fund’s prospectus.

Different share classes are available on third-party investment platforms and through financial advisers. Not all share classes are available directly to retail investors. Other share classes may have higher or lower charges than that available through the WealthKernel portal, but the third-party platform or financial adviser will usually make a charge for the service and, if applicable, the financial advice provided. A full list of share classes can be found in the fund’s prospectus which you can contact us to obtain.

You may also contact us for an application form should you not wish to use any of the above methods to invest in the fund.

How long is my investment committed for?

There’s no lock-in period or minimum investment time. However, this should be considered as a medium to long-term investment of at least five years.

What are the benefits compared to buy-to-let?

Compared with traditional buy-to-let investing, the fund compares favourably for the following reasons:

Lower risk: The fund offers greater diversification than buy-to-let, spreading the risk of property ownership across a large number of tenants, property types and locations, rather than it being concentrated in one or two properties in a single area.

Buying power: As a large investor, the fund is also able to acquire assets through bulk-purchases from developers at discounts to open market value, providing additional return to investors.

Value for money: The fund costs include all property management and maintenance as well as tenant liaison, making it hassle-free for investors, compared to a direct buy-to-let investment.

Tax efficiency*: Unlike direct buy-to-let, the fund can be held in ISA, SIPP, Offshore Bonds and trusts. Outside of these tax-advantaged wrappers, capital gains are not subject to the 8% Capital Gains Tax Surcharge which apply to buy-to-let properties. Buy-to-let investors also have to sell an entire property – perhaps worth hundreds of thousands of pounds – in order to realise any capital gain, whereas an investor in the fund could choose to cash in just some of their shares to keep within annual Capital Gains Tax allowances each year.

*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. 

Start growing your investment today!

Now it’s simple to invest in residential property online in a tax-efficient ISA. Start today and make those savings goals a reality.

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Looking to retire?

The TM home investor fund can provide returns which are less volatile than stock market investments, with the option to draw down capital as you need it.

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Saving for your first house?

TM home investor fund invests in real 'bricks and mortar' properties, so it can give your savings a chance of keeping pace with house prices.

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Get your child on the property ladder

Over the long term, cash based savings often don't keep up with house prices. That's where TM home investor fund is different because it actually invests in the UK housing market.

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Diversify your investment portfolio

Whether you're an existing or potential buy-to-let investor, TM home investor fund can help spread the risk of your investment portfolio.

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