Fund Performance Factsheet – January 2020
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
We have seen a remarkable change in sentiment in the UK residential property market.
According to the latest RICS UK Residential Market Survey, buyer enquiries, agreed sales and new instructions all rose over the month and all respondents remain upbeat on the outlook for sales in the coming year. In that more positive context, the TM home investor fund recorded its second month of upward valuations in the property portfolio. In December, our holdings in Manchester were valued upwards and in January our independent valuer increased valuations on all our units in Wembley. In total we hold 39 units across these two sites totalling 20% of the overall property portfolio.
Furthermore, following positive inflows of new investment into the fund, it will shortly complete on a purchase of 13 three-bedroom new-build houses in Smethwick, West Midlands for c. £2.9 million. Completion is scheduled for the end of February on 11 of these, with the remainder in April or early May. This development is a good fit in terms of our investment strategy – we favour the Midlands as a region, and the development is near a new Super Hospital and a 6-minute train journey to Birmingham New Street Station. We aim to make a further acquisition of up to £2 million in the coming months, and these acquisitions will bring the cash levels back into our target range of 10-15%.
Demand for good quality rented housing continues to strengthen with the RICS stating that demand rose at a steady pace in the 3 months to January. The latest ONS data shows rents increased by 1.4% over the year, whilst rents in the fund increased by 1.57% over the same period. This is expected to continue with rental growth estimates of 2%-3% per year over the next 5 years.
The Fund’s portfolio occupancy remains strong at 96%.
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).