Daniel Godfrey has revealed who is going to manage The People’s Trust, which is expected to be launched in September.
The trust has selected five equity investment management teams, including Artemis Investment Management and First State Investments, who are all hired on a 7-year contract.
Artemis’ Mark Niznik and William Tamworth will focus on UK smaller companies for the trust, French Comgest will focus on Europe, First State Investments on Asia Pacific and Japan, J O Hambro Capital Management on global holdings with Ben Leyland and Robert Lancastle as fund managers.
Lansdowne Partners’ Per Lekander will invest in clean energy.
Additionally, Big Issue Invest will manage a portfolio of social impact investments starting from 1 per cent and potentially rising to up to 5 per cent of the assets, the firm says.
Godfrey says the managers have been selected “for their success in delivering long-term returns” on the basis of different and uncorrelated investment approaches to achieve the trust’s focus on “sustainable wealth creation”.
On a selection of their best ideas, the trust will narrow down the selection further based on the managers’ highest conviction ideas.
It has also been confirmed the managers will not be paid based on performance fees.
Initial costs for the fund, which includes a free Isa and savings plan, will be between 1 and 1.5 per cent a year but they are expected to decrease as the fund grows in assets.
The People’s Trust, which has gathered over £100K through fundraising, will seek total returns of 7 per cent annually over a seven-year period and will be accessible to anyone who saves from £10 a week.
Godfrey says: “We couldn’t be happier than to work with these excellent managers who are all proven and successful investors and passionate about the power of long-term investment to serve clients and society. They are all excited about The People’s Trust’s model, ambition and values and the potential to make investment better for everyone.”
Artemis’ Niznik says the “under-exploited” UK smaller caps space will provide value to the fund as well as it being “a ground-breaking seven-year mandate.”
Chris Turpin, the managing director for Europe and Middle East at First State Investments, says the long-term approach to investing of trust is “a great fit” for the firm’s own philosophy.