The Fund is the first FCA authorised, open-ended, pooled fund for UK residential property investment, we are dedicated to helping Advisers understand the asset class as a mainstream investment choice.
Our first fund - the TM Hearthstone UK Residential Property Fund - invests in a portfolio of professionally managed properties and aims to match or exceed the growth in the UK House Price Index across England, Scotland and Wales.
The Fund may also benefit from residual rental income which is reinvested back into the Fund.
Residential property is the sole focus of Hearthstone Asset Management (Hearthstone), a subsidiary of Hearthstone Investments Plc.
Fund objective is to provide long-term capital growth and consistent income returns, by investing in a diversified portfolio of let residential property within the UK.
Fund benchmark is the LSL Acadametrics UK House Price Index (formerly FT-HPI), a whole of market index based on Land Registry transaction data.
Income from lettings is designed to cover fund level costs and provide an additional net return from rental.
Fund is FCA authorised under Non-UCITs Retail Scheme (NURS) rules. Covered by FSCS.
Fund is an OEIC sub-fund of the TM Hearthstone ICVC umbrella – unit trust feeder fund also available. Daily dealing for retail investors.
Property Authorised Investment Fund (PAIF) tax status – unit trust feeder fund also
Stock selection prioritises newer built units, managed so as to reduce maintenance and management costs. Properties are chosen to reflect the UK index by type and region and as such are in strong performing rental locations.
Diversification within the Fund provides benefits to investors (including multi-managers) seeking to reduce portfolio volatility, reflecting the low correlation of residential property to other asset classes.
Stock specific risk within the fund is low as individual unit size is relatively small. Fund is available to retail investors and has to achieve ‘Prudent Spread of Risk’ per Collective Investment Schemes Sourcebook.
Fund owns tangible assets, is transparent and holdings data is readily available.
Fund manager with over 30 years’ experience in residential and an executive team
previously responsible for over £8bn+ in property FUM.
A disciplined risk management regime is in place. The Fund manager’s proposed
investment decisions are overseen by two committees selected both internally and
Significant operational infrastructure exists. Hearthstone has access to large scale
residential property management, lettings services and cash discounts which include
access to off-market portfolios.