Hearthstone Investments, the specialist residential property fund manager, has achieved a highly successful first six months since it launched its TM Hearthstone UK Residential Property Fund - the first of its kind – which was FSA authorised at the end of July 2012.
• Since launch, the fund has attracted strong interest from seed funders, IFAs, private investors using SIPP and ISA wrappers, and from institutional investors including Islington Borough Council – the first London borough council pension fund to invest in the scheme.
• The fund currently has £37.5m of assets under management, comprising of original seed deals with Barratt Developments and Bovis Homes as well as the more recent deal with Quintain Estates and Development.
• In first six months of operation the fund achieved approximately a 2% total return on investments.
• Hearthstone has been shortlisted for both the ‘Newcomer of the Year’ and ‘Residential Financier of the Year’ categories at the 2013 RESI Awards.
The Hearthstone Residential Property Fund invests in private rented sector housing across the UK and aims to outperform its capital benchmark, LSL Acadametrics House Price Index, as well as providing an additional income return.
Hearthstone uses quantitative asset allocation methods and qualitative regional stock selection to build a portfolio of assets that reflect the distribution of UK housing. These properties are let under assured short hold tenancy agreements and corporate lets.
As a Property Authorised Investment Fund (PAIF) it is also eligible for tax-efficient wrappers such as ISAs and SIPPs and has share classes that are suitable to both retail and institutional investors. Individual investors can add the fund to their existing portfolio and make use of their yearly ISA allowance of £11,280 or Junior ISA allowance of £3,600. This is the first time that residential property has been available in an ISA wrapped investment. Meanwhile, SIPP investors can utilise their annual allowance of up to £50,000 and receive tax rebates on investing in residential property.
Commenting on the milestone, Christopher Down, founder and Chief Executive of Hearthstone, said:
“We have enjoyed a challenging but exciting first six months since we launched the fund. Since its conception we were confident that there was a gap in the market for a fund of this nature, presenting a unique opportunity to invest in the UK’s stable and profitable residential property market.
“The performance of the fund to date is encouraging and a result of hard work by both the Hearthstone team and our strategic partners. Over next six months, we look forward to growing the portfolio and welcoming many more investors as they take advantage of this unique and tax efficient way of accessing returns from residential property.”
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