Daniel Godfrey’s People’s Trust has announced that it is canning its listing on the London Stock Exchange due to a lack of demand from intermediaries and institutional investors.
In a statement, Godfrey said the investment trust had attracted a great deal of interest and support, particularly from retail investors.
“There was every indication that had we achieved critical mass, The People’s Trust would have gone on to thrive. Disappointingly, this was not to be,” Godfrey says.
“Unfortunately, retail investor interest alone, whilst substantial, was not enough in the absence of sufficient additional support from institutional investors and discretionary wealth managers.”
All investors who subscribed for shares will receive a full refund.
Godfrey tells Money Marketing it was clear from Monday they wouldn’t reach the £50m minimum to launch. “Maybe there wasn’t enough breadth of market coverage, and while it was well received, it wasn’t enough,” Godfrey says. “We’ll keep trying.”
Godfrey expressed disappointment and regret the listing would not proceed.
“It’s always hard to break the mould. While we have not succeeded on this occasion, the case we have made for a fundamental change in the investment chain has definitely left some cracks.
“Our argument, for the investment chain to abandon its focus on short-term index- relative returns in favour of sustainable wealth creation and the stewardship to support it, has been widely accepted. One day it will happen – to the great benefit of investors, society and the economy.”
Around 2,500 founders contributed over £100,000 towards costs in a crowdsourcing exercise in late 2016.