A fundraising campaign initiated by former Investment Association boss Daniel Godfrey to launch an investment trust has passed its £100,000 target after only a month of campaigning, with over 1,800 investors taking part.
Mr Godfrey launched a crowdfunding campaign to cover start-up costs for The People’s Trust - a new vehicle aimed at encouraging consumers who have not invested before to being saving. Capital raised now stands at over £101,000 from 1,865 contributors.
In October, First State, Orbis Investments, and Big Issue Invest backed the trust ahead of its planned initial public offering sometime next year. Contributors to the fund raising campaign will be offered discounted shares on issue with any remaining capital used to seed the fund.
Costs at launch are expected to be between 1 and 1.5 per cent, but could fall with economies of scale, Mr Godfrey said. The portfolio will be able to invest across asset classes, with a focus on global equities. It will not pay bonuses to its staff and seeks to deliver 7 per cent annualised returns over a seven-year period.
Mr Godfrey said the trust endeavours to help make the asset management industry more fair and accessible for consumers. “Most people think investing isn’t for them – we’re aiming to change that,” he said.