The People’s Trust will be run on a total return basis, rather than comparing itself to any one sector. Godfrey believes the trust will be different to many others on the market because investments will be made on a seven year view.
In terms of how the capital raised by the trust will be allocated, Godfrey said that the board will make decisions on which fund managers will receive the cash, advised by Willis Towers Watson.
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He remarked that the trust will be run on an ‘absolute return’ basis, rather than being concerns with having allocations to particular asset class or market.
The People’s Investment Trust recently raised £100,000 to fund the start-up costs of the vehicle, with Godfrey stating that, ‘the crowd sourcers should not view that as an investment, but rather as somewhere between a membership and a donation. The funds were used to pay for the start-up costs of the trust, and all who took part will receive the option to buy shares in the actual investment trust at a discount when it IPOs in the future.’
Godfrey’s backround includes spells at the helm of both the Investment Association and the Association of Investment Companies, so he has no particular experience of managing money. He commented that his colleagues on the board will include experienced money managers.
The level of fees charged by investment funds is a particular bone of contention for many investors. Godfrey would not be drawn on what the eventual fee charged by The Poeple’s Trust will be, but commented that staff will not be paid cash bonuses, but rather receive deferred shares in the trust itself.
He takes the view that this means the staff will not have any incentive to push the charges upwards, as they won’t receive benefit from that, but will receive benefit as a consequence of lower charges pushing the returns upwards.
The People’s Investment Trust will come to market in 2017, and be available for investors to buy shares in. Godfrey commented that at present he expects the IPO of the trust to take place in late summer or Autumn.