Investors looking for new ways to utilise their annual ISA allowance, can this year – from as little as £1000 or £50 per month – access the UK’s £4trillion residential property market by investing in the TM Hearthstone UK Residential Property Fund.
The fund offers an opportunity for cash ISA holders to seek higher returns from real “bricks & mortar” residential property. For most investors this is a very familiar investment which is traditionally less volatile than equities and can deliver higher long-term returns. As well as those switching from low-performing cash deposits, experienced investors holding stocks & shares ISAs can add the fund to their existing multi-asset portfolio.
Data analysis shows that if investors had been able to regularly put their full cash ISA allowance (£47,800) into a residential property fund instead (since ISAs launched in April 1999) they would have seen the value of their investments increase by 47.26%.
Table One – Relative Performance of Asset Classes (1999 – 2012):
The fund gives advisors and their clients access to residential property returns in a manner which is tax-efficient, diverse and professionally managed. It invests in private rented sector housing across the UK and aims to outperform its capital benchmark, the LSL Acadametrics House Price Index, as well as providing an additional income return.
Investors can access the fund from as little as £1000 or £50 per month.
Mark Forman, Distribution Director at Hearthstone Investments, said
“Residential property has produced consistently strong returns over the last twenty years, and has long been an asset which people favour, often due its highly tangible nature. This tax year – for the first time – people can invest their ISA into a fund which aims to outperform what is arguably the UKs largest asset class (in excess of £4 trillion)”.
“We have seen a strong level of demand from retail investors over the last six months, and anticipate that this will only continue as we approach the end of this tax-year”.