Fund Performance Factsheet – September 2019
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
As the Brexit saga drags on, transactions in the owner-occupier housing market continue to falter with Land Registry estimating that there were c.70,500 transactions in England & Wales in September.
The LSL Acadata House Price Index, Hearthstone’s preferred housing barometer, shows prices remained relatively flat across the country, with Wales, the North West and North East having the highest levels of growth, but in reality, the regional differences are quite small. The independent valuation of the Fund’s properties showed a 0.16% increase in September, whereas LSL’s House Price index fell -0.4%. The Bank of England noted that household net mortgage borrowing weakened, but that this was in line with the average since 2016. Mortgage approvals, an indicator of future lending, also fell but again in line with averages. LSL noted that “the underlying fundamentals of the market remain strong and there is growing expectation that the medium-term outlook is quite positive with the market gaining some of its lost momentum”.
Demand for good quality rented housing continues to strengthen, with Hometrack stating that annual rental growth is 2%, up from 1.3% a year ago as supply tightens. The RICS Housing Survey predicts continued rental growth of 2% over the next year, with imbalance in supply and demand pushing this to 3% over the subsequent 5 years. Although rents are rising at the fastest pace for 3 years, they are still lagging earnings growth of 4%. The homes in the portfolio are almost fully occupied with four being vacant at the month end – three of which are being sold as part of the ongoing asset management activity. Offers have been accepted on each of them at or slightly above the current valuation, and these will progress to completed sales in the near future. Rentals of the homes within the Fund continue to roll on, providing good rental growth and income into the fund.
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).