thewealthnet     About Us    |    FAQs    |    Contact Us
  Advanced Search       RSS Feed  twitter  linkedin 
Welcome to thewealthnet    |   Europe, Middle East & Africa Get The App   |   Login
  Mon 22nd Jan 2018  |    Make this my homepage  
Subscribe now!
Credit Cards Accepted
World Map
The People's Trust aims to raise £125m ahead of listing on London Stock Exchange
08/09/2017 , News Team

 The People’s Trust has launched an offer for subscription, an intermediaries’ offer and a placing of shares with a target of raising £125 million by the closing date of 10 October 2017 in its prospectus.

Developed by the former chief executive of the Investment Association, Daniel Godfrey, The People’s Trust has been designed to resist the short-term pressures within the financial services industry so it can focus on sustainable wealth creation through high-conviction, high-stewardship and low-turnover investment rather than short term relative returns, The People’s Trust has five equity managers to execute its strategy.

Its primary objective is to deliver long-term total returns measured over seven-year time horizons, with no index benchmarks and it has crowdsourced its set-up costs from over 2,400 founders who wanted to have a fund created for the benefit of investors, “rather than to be a product created by a commercial enterprise” according to the prospectus.

In addition, The People’s Trust will pay no performance fees to portfolio managers and no bonuses to executives, and aims to list on the London Stock Exchange and the Social Stock Exchange on 17 October 2017. The board, including Mr Godfrey, are to invest over £1.5 million at launch. The non-executive directors are to waive fees in full and Mr Godfrey is to waive half his salary for two years or until the company reaches net assets of £250 million if earlier.

The prospectus also notes that one percent initially (and five percent maximum) will be allocated to social impact investment, aiming for modest returns from investments, whose purpose is to have an impact on social deprivation initially in the UK.

Mr Godfrey commented: “The People’s Trust has created our own investment chain, so that we can focus on long-term, sustainable wealth creation without the short-term pressure that plagues the investment chain.

“Short-termism may be caused by profit risk and career risk, but it has done enormous damage to investor returns and to the potential that long-term investment has to make the world a better place.”

Leader of the Liberal Democrats, Sir Vince Cable, said: “The People’s Trust has created a structure and purpose which is able to challenge the present model. Writing as an individual who sought in government to promote ‘long-termism’ in financial markets I hope that The People’s Trust will be a success.”

Share with Linkedin Share with Twitter
Poor   Average   Good   Excellent
thewealthnet archives contain 48,337 articles dating back to 1997,making it the largest single source of information on the wealth management industry world-wide. To search for more articles, please click here.


© This article originally featured on thewealthnet. It is protected by international copyright law. If you copy this article illegally, you will be liable to prosecution. All rights in and relating to this article are expressly reserved. No part of this article may be reproduced, stored in a retrieval system or transmitted in any form or by any means without written permission from the publishers.

    Latest Headlines:    by Topic | All News
  Advertise   |   Contribute   |   Press Release   |   Terms of Use   |   Privacy   |   Contact Us Copyright Pam Insight Ltd., All Rights Reserved