Fund Performance Factsheet – June 2019
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
Over the past months, we have seen a narrowing in the house price growth disparity between regions, confirming the overall holding sentiment of the housing market in light of the extended political uncertainty.
On the one hand, house prices in London have recently stabilised. Although on an annualised basis London house prices are down 1.4%, much of that fall happened in 2018 whereas the past months’ figures have hovered around 0%.
On the other hand, the top performing regions annual growth rates have reduced over the past months, with top regions registering annual house price growth of 1.5 – 3% (East Midlands, Yorkshire and Humber, North West). Figures for Wales show an annual growth rate of 5%, however that is due to a technical one-off impact following the introduction of the Land Transaction Tax. There is still strong growth in some of the bigger cities, including Bristol, Manchester and Nottingham (4.5-6% annual growth).
During June, there were an estimated 77,000 transactions, down from 82,000 in the same period last year, and 87,000 for June 2017. RICS have reported a modest uplift in buyer enquiries and expect an improvement from autumn onwards.
Rental income continues to be very resilient. Unemployment remains at record lows, driving wage inflation, which in turn is a key driver for rental value growth. Our portfolio benefits from this situation, in addition to the high occupancy rates achieved throughout the year and across all regions where we are invested.
Since the beginning of the year, the fund has seen steady net inflows resulting in our liquidity buffer being above 13%, towards the upper end of our 10-15% target range.
Looking beyond the short term, it is important to remember the long-term premise of investing in UK residential property. The UK suffers from a chronic undersupply of good quality rental homes, whilst the number of private tenants is expected to grow further.
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).