The People’s Trust, the new fund to be launched by former Investment Association chief Daniel Godfrey, has reached its minimum funding target of £100,000 less than a month after it was announced.
The fund, which seeks total returns of 7 per cent annually over a seven-year period, will be launched in the first half of next year.
The global fund, which will invest an unconstrained manner and will be 100 per cent owned by its investors, will seek to achieve its returns by avoiding permanent loss of capital.
In October, Godfrey had called for investments of just £20 from investors who could buy shares at a discounted price when it lists on the London Stock Exchange next year.
At that time, Godfrey told Money Marketing sister title Fund Strategy he aims to hire up to 10 portfolio managers to manage around 10 holdings. Investment consultancy Willis Towers Watson are advisers on selection and ongoing monitoring of investment managers.
First State Investments, Orbis Investments, and Big Issue Invest are also supporting investors.
Godfrey tells Fund Strategy: “I am amazed by the support from all around the country of people for the idea of a long-term investors-owned investment trust.”
The exact fees for the trust have not been set yet. However, initial costs for the trust, which include a free ISA and savings plan will be between 1 and 1.5 per cent a year. They are expected to decrease as the fund grows in assets. Godfrey says the fund will be also accessible on a platform to be developed in-house.
Godfrey recently revealed the names of five members of the board of the trust including a former managing director at JP Morgan Asset Management UK Craig Cleland and Dougie Ferrans, the founding chief executive of Insight Investment Management and former chairman at the Investment Management Association, now IA.
Hugh Aldous, David Trenchard, Jane Tuffnell have also been named directors at The People Trust’s board.
Fund Strategy first revealed Godfrey’s plans about the business launch in March this year, five months after he left the Investment Association.