The People’s Trust, the multi-manager fund being launched by industry veteran Daniel Godfrey, is aiming to raise £125m from investors with a listing date of 17 October.
Mr Godfrey is a former chief executive of the Investment Association.
The fund will place capital with a range of outside managers and has a seven-year time horizon.
The trust will list on the London Stock Exchange and the Social Stock Exchange.
The trust's prospectus states that the board, including Mr Godfrey as chief executive, are investing £1.5m of their own wealth into the vehicle at launch.
The non-executive directors of the trust will receive no fee, and Mr Godfrey will only take half of his salary, for the first two years or until the trust reaches net assets of £250m, whichever is earlier.
An initial 1 per cent of the capital of the trust will be deployed at launch to social impact investments, with the capacity for this to increase to a maximum of 5 per cent of the trust’s assets to those investments, which the prospectus states would achieve “modest” returns for investors, but have a positive impact on social deprivation in the UK.
The capital of the trust is to be managed by five fund managers, who have been selected by the People’s Trust with the aid of their adviser, Willis Towers Watson.
The managers chosen are Mark Niznik, who runs the Artemis UK Smaller Companies fund, and will select between 20 and 30 stocks for the People’s Trust, Arnaud Cosserat, a Pan-European Equities fund manager at Comgest, who will pick between 20 and 25 stocks for the trust.
Martin Lau, who works on the Asia Pacific excluding Japan team at First State, will select between 25 and 40 stocks from within that region for the trust.
Ben Leyland, a global equity manager at JO Hambro, will choose 25 to 40 stocks for the trust, and Per Lekander, a clean energy investor at Lansdowne Partners, will chose between 15 and 25 stocks within that universe for the trust.
Mr Godfrey said: “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.”
Darius McDermott, managing director at Chelsea Financial Services, met with Mr Godfrey last week to discuss the investment case for the People's Trust.
He said the messaging of the trust is good, and the choice of managers satisfactory.
david.thorpe@ft.com
