Fund Performance Factsheet – April 2019
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
In politics little has changed in the last month but in the housing market there is slightly more optimism. The fundamental undersupply of good housing remains. Capital values nationally are effectively unchanged with Acadata recording a monthly fall of 0.1% and an annual uplift of 0.2%. In other words, the average house price fell by £180 in the month.
The Independent Valuer found increased values in some of the Fund’s properties and once again in April the Fund again showed a positive return net of fees.
The important points to note are:
1) There are some regional variations, although even these are in a narrow range
2) Rental demand, and rental growth continues
First time buyers remain an important part of the market, and as the number of home movers remained constrained there was small decrease in the seasonally adjusted number of transactions, with an estimated 64,000 in April.
The Housebuilders Federation reported levels of site visits and new homes reservations on a gently upward trajectory with both first-time buyers and home movers active. Reservations from Buy to Let investors fell yet again, demonstrating the continuing impact of the tax changes impacting individual investors. This point was also picked up in the RICS Survey.
In April the RICS UK Residential Survey commented that Brexit uncertainty and a lack of available stock to purchase remained the key constraints, meaning little change in momentum was anticipated in the near term. That said, expectations were at least slightly more positive at the twelve month horizon.
In the lettings market, RICS reported that tenant demand remained on a gently upward trajectory and landlord instructions continued to dwindle, with anecdotal evidence signalling little chance of a turnaround in the foreseeable future. Rents are projected to rise by around 2% at the national level over the coming twelve months, with growth seen accelerating to average 3% per annum over the next five years.
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:
Hargreaves Lansdown (telephone/postal dealing only), Interactive Investor, Alliance Trust Savings, AJ Bell Youinvest:
> For General Investment Account, pension/SIPP or ISA: Class D (ISIN code GB00B9608795)
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 PLC 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).