Investment Fund Awards 2018 4 Wealth & Finance International - 2018 Investment Fund Awards Since its inception in 2009 as the UK’s first specialist residential property fund manager, Hearthstone Investments has been working to offer its clients unique solutions. For many, saving for a goal often revolves around residential property. However, investing in the UK has for too long been focused on Equities, Bonds and Commercial Property. Residential Property is, in Hearthstone Investments’ opinion, overlooked despite investors’ affinity to an asset class that is tangible, transparent and intuitive. Hearthstone Investments aim to bridge that gap with the TM home investor fund. Hearthstone see the following reasons why a residential property fund could help achieve a client’s goals: An alternative to buy to let: Recent tax and regulatory changes made Buy-to-Let investing less attractive for some investors. A residential property fund can be an alternative way of investing in UK residential property Saving for a Deposit: A residential property fund can be of interest for investors saving for a deposit – whether first time buyers or parents, grandparents, friends and family helping others get on the property ladder Diversifying a portfolio: Adding residential property to a diversified, multi-asset portfolio can enhance diversification, in particular for defensive portfolios. Returns from residential property, a combination of capital growth and rental income, show low or negative historic correlations to Equities, Bonds and importantly Commercial Property. Launched in 2012, the fund was the first open- ended residential property fund in the UK available to retail investors. The overall guidelines for the fund portfolio have remained the same, from the start. They are that, over the long-term, at least 85% of the portfolio should be invested in mainstream residential property across thee UK. Up to 15% is held for liquidity purposes in a combination of cash and other liquid investments. The fund does not use any gearing. Broadly speaking, the fund aims to be invested according to the regional and property type distribution of the UK housing stock by value, outside Central London. The Fund holds assets that are representative of the region by price, with the average house price currently at £240,000, consisting mainly of 2 and 3-bedroom homes. The Fund invests primarily in low-maintenance, new build and modern properties in areas with high rental demand and a history of strong capital growth. Properties will be selected based on a long term ‘buy and hold’ strategy. Active management of the portfolio will be undertaken, but trading will be minimised in order to keep the cost of transactions low. Currently, the fund holds over 200 properties across the UK and has a proven 5-year performance track record. The fund recently obtained an Elite rating from FundCalibre and Hearthstone Investments commissioned Defaqto to provide an independent due diligence report. As part of its ongoing focus on improving its service offering, Hearthstone Investments recently launched its online investment portal www., which allows direct investors to open an ISA holding the TM home investor fund from as little as £100. Hearthstone Investments plc focuses on investing in residential property, offering investors a unique solution that cannot be found elsewhere. Having recognised the firm and its flagship TM home investor fund in this year’s Fund Awards we profiled them both to find out more. Hearthstone Investments plc Best Residential Property Fund Manager – UK & Most Innovative Investment Fund (5 Years): TM home investor fund FD180006 Company: Hearthstone Investments plc Contact: Cedric Bucher Address: 23 Austin Friars, London, EC2N 2QP Phone: 020 3301 1311 Website: