Returns on bank and building society deposits are at an all-time low, and not keeping pace with inflation. A diversified residential property fund such as Hearthstone’s may offer an alternative home for some of a client’s portfolio in the pursuit of increasing their overall returns.
As a cash investor is likely to be one who is risk averse, they would typically wish to avoid funds that are illiquid, or highly geared, or invested in volatile assets. The Hearthstone Residential Property fund is designed to be able to satisfy the liquidity requirements necessary for an authorised ‘retail’ fund, employs no gearing as part of its investment strategy, and invests in a diverse portfolio of UK residential property which has historically demonstrated low volatility.
From 6th April 2015, tax rules allow up to £15,240 to be invested into the New ISA ('NISA') as a mixture of cash and stocks & shares/funds.
Being a real asset also provides the prospect of retaining exposure to inflation over the medium to long term.