Most people think that investment isn’t for them. We’re trying to change that.
The People’s Trust will be a new and different kind of investment fund. We'll be owned 100% by our customers. And we'll have a structure that ensures we’ll always be independent of any external commercial interests.
You can be confident The People’s Trust will be run entirely for your benefit because we’ve designed our structure to make sure that we do. This gives credibility to our purpose: better returns for you and a better impact on society by investing for sustainable wealth creation.
We’ll aim to fulfil our purpose through true long-term investment, which means that we’ll have the time and patience to work with our investment managers and the companies they select. Our mission will be to help them deliver sustainable long-term returns for you and a better future for employees, the environment and the economy.
The People’s Trust will be owned 100% by you, its customers, and it will put your interests first every time.
From as little as £10 a week, you’ll be able to put your money into the fund by buying People’s Trust shares. This means you, along with every other customer, will be a shareholder – an owner with a right to share in the fund’s profits and a voice in how it’s run.
We won’t pay our employees any bonuses, which ensures that there won’t be any unintended incentives that could damage your interests.
Instead, we’ll pay employees part of their salaries in People’s Trust shares, which they’ll have to hold for at least seven years. This ensures that their interests will always be perfectly aligned with yours.
Total costs will be crystal clear, so you’ll always know what you’re paying for the returns you’re getting.
And all of the economies of scale we gain as we grow will be put back into The People's Trust to bring down costs because we serve no one’s interests but yours.
Over the long term, we believe that our approach can deliver you better returns.
We will free up fund managers to think long-term – and encourage the companies they invest in to do the same.
The People’s Trust’s selected investment managers will invest in the companies that they believe are best able to achieve sustainable, long-term growth.
Our aim is to get you the best possible returns over seven-year periods. That’s how long we think it can take to give you a strong likelihood of doing really well.
Our strategy is to achieve this by backing companies for the long term and working with them to help them do even better.
Nobody can be sure what returns will be, but we believe that over a typical seven-year period, our strategy should be capable of turning £100 into £160 - that's a total return of 7% a year compound, after costs, and assumes that inflation runs at 2% p.a. over the period.
In terms of your spending power, this would means a 5% increase on your £100 every year, after costs, turning it into a value of around £140 in seven years, after inflation.
We are projecting that our costs will between 1-1.5% a year in the early days, before falling as The People's Trust gets bigger and the power of the economies of scale are given back to you.
Actual returns will be affected by general inflation and economic and market conditions. Some seven-year periods will be better and some worse than the target and it is possible to lose money, even over a seven-year period.
Every year, but in particular at the end of the seventh year and every year thereafter, the Chief Executive will write to shareholders to explain how performance has measured against our targets, how that performance was achieved and any lessons learned.
The Chief Executive will be accountable for performance and Shareholders will be invited to vote on the retention or replacement of the Chief Executive, based on the performance report and explanation at the Annual General Meeting.
Your money is at risk and the value of shares and any income from them may fall as well as rise. But we believe that investors who invest with The People’s Trust for the long haul and who can “keep calm and carry on” when markets are turbulent are likely to be highly satisfied with the outcomes of our approach.
We’ll work with the companies we invest in to encourage them to focus on long-term, sustainable wealth creation. In this way, we’ll help to change society for the better.
We’ll seek to invest in companies that have business strategies, market strength and the people to deliver sustainable, long-term growth. We will encourage companies to innovate, invest in their people, pay their taxes, and protect the environment. With The People’s Trust backing them long-term, those companies should be able to deliver better returns for you, better growth for the economy and better jobs for their people.
The People’s Trust will also improve lives directly and immediately, by using a small proportion of the fund to lend to charities and community interest companies that have a direct social impact. This is not charity; we expect a modest return on these loans – but you’ll know this money is being used for good.
it could be an excellent vehicle for the many millions of new investors in the market Merryn Somerset-Webb
I have never done anything like this in my life – not very money savvy really. However even I could understand this and it sounds a great idea. Good Luck to us all! Julia Taylor
It’s great to see a new player with such a saver-centric philosophy in the market. Catherine Howarth - CEO ShareAction
Stewardship is on the march. The Peoples’ Trust deserves to succeed and I for one will be signing up Mark Goyder, CEO, Tomorrow's Company
When you invest in The People’s Trust, we buy stakes in companies around the world on your behalf. Together, we have more power than you may realise.
We seek to have a positive impact on how the companies we invest in use your money. We can hold their executives to account, and even seek to require them to change the way they behave if we need to. By doing that, we’ll make investing work for you. We’ll free fund managers and companies from the shackles of short-termism. We’ll help to make our society more prosperous, more sustainable and more equal.
The People’s Trust will be a new kind of mutual business. That means it will be owned 100% by its customers. Like any new business or new investment fund, we need some capital to help us develop The People’s Trust and get it ready for launch in the first half of 2017.
Thats why we're seeking Founders to contribute a minimum of £20 (£10 for under 35s) to cover our costs. Founders will be offered a small discount to the share price when we launch.
The money we raise from Founders is not an investment, it will be used to cover our start-up costs. We were seeking to raise a minimum of £100,000, which we have now achieved. But the more we can raise, the more Founders will be committed and the better our launch will be. If there’s any surplus left over when we launch The People’s Trust, it will become part of the starting capital for the benefit of all shareholders.
We’re setting the contribution required at £20 (and £10 for under-35s) because we believe that is an amount that is within reach for most people if they love the idea behind The People’s Trust and want to play a part in making it happen.
When Daniel Godfrey was Chief Executive of the Investment Association, the trade body for the £6 trillion UK investment management sector, he saw first-hand how the industry could improve.
In that role, he worked with many people and firms who were committed to improving investment and the operation of capital markets. But he saw how strong the systemic pressures are and how, despite widespread desire for change, radical reform is rebuffed. He saw first-hand how, if change was to happen, it would need a fresh approach and has been supported by many people and firms in the industry with a shared purpose.
Costs and charges could be much simpler and more transparent, making customers better informed. Short-term pressures and incentives could be replaced with longer-term thinking and investing, creating more growth. And, as well as giving investors more, better investment practices would have a positive impact on society – generating not just better returns, but a better future for everyone.
Daniel has over 30 years’ experience of financial services, including over a decade as Director General of the Association of Investment Companies, four years as Marketing Director of Flemings (now JP Morgan) Investment Trust Management and three years as Chief Executive of the Investment Association.
He currently serves as an Independent Director of Digital Moneybox and Big Issue Invest.
Mark Niznik & William Tamworth will be managing a bespoke UK Smaller Companies Portfolio, typically of up to 30 stocks.
Established in 1997, Artemis Investment Management LLP, (Artemis) manages over £25 billion of assets (at 30 April 2017) across a broad range of high conviction, unconstrained mandates. As a dedicated, active investment house, they specialise in investment management for both retail and institutional clients. They are a partnership of experienced investors with strong long-term track records. They invest in their own strategies alongside their clients, believing in a strong alignment of interests. The firm is structured to allow fund managers to focus purely on managing assets, which has enabled them to attract the talent that has been instrumental to the firm’s success.
Big Issue Invest is the social investment arm of The Big Issue. It extends the mission of The Big Issue by investing in social enterprises and charities that prevent and tackle poverty and create opportunity for people across the UK.
Big Issue Invest currently manages and advises on over £130 million of social investment funds.
Big Issue Invest was set up to help tackle and prevent some of our biggest social problems. What they do is not charity. It invests in businesses led by socially minded entrepreneurs from all walks of life. They understand first-hand how good, smart businesses can do great things.
Big Issue Invest invests in organisations that have a clear social mission and a business model that delivers. Social impact is a part of Big Issue Invest’s DNA. The Big Issue exists to provide homeless people with a means of earning a legitimate income. Big Issue Invest exists to help prevent the problems that lead to people becoming homeless in the first place – typically those related to poverty and disadvantage.
Nearly £30 million has been invested in 300 social enterprises and charities. Over 50% of these organisations work in the 25% most deprived areas of the UK. Together, these organisations have directly benefited over 1.8 million people and created over 3,200 jobs.
The organisations financed are a diverse mix of socially-driven organisations whose activities achieve a range of social outcomes, including:
Employment and Training Skills development, job creation and employability for the long-term unemployed, including the homeless and ex-offenders.
Mental Health Improving the wellbeing of those with mental health problems.
Health and Social Care Improving access to preventative healthcare and social services in low-income communities.
Financial Inclusion Increasing access to affordable credit and savings services for low-income people.
Community Development Increasing the quality and accessibility of community services, including daycare centres and community sports and leisure facilities.
Community-led Environment Scaling-up, community-driven renewable energy and resource conservation enterprises that have local social and economic benefits.
All businesses we invest in are required to regularly report on their social performance. Big Issue Invest has developed a methodology and impact assessment tools that help make informed decisions.
Big Issue Invest aims to find the right balance of performance data that provides both meaningful social impact reporting to investors and valuable business insight to investees, while avoiding over-burdensome reporting requirements.
Big Issue invest has been assisting in the development of The People’s Trust and are an example of a company that we would be pleased to have in our initial selection of investment managers.
Arnaud Cosserat. Franz Weis, Alistair Wittet and Sébastien Thévoux-Chabuel will be managing a bespoke portfolio of pan-European Equities, typically of 20-25 stocks.
Founded in 1985, Comgest is an independent, international asset management group with over £18bn of assets under management (as at 31 December 2016). Comgest is characterised by its unique approach of ‘quality growth in the long term’ through its unconstrained style across all equity portfolios. As an independent group, the capital is entirely held by its employees and founders. Stability, transparency, ethics and integrity are paramount to Comgest’s culture and how they manage relationships, viewing relations with clients in the same manner as the management teams of the companies in which they invest: enduring partnerships based on mutual trust and integrity over the long term.
The First State Stewart Asia Investment Team led by Martin Lau, Richard Jones, Vinay Agarwal and Alistair Thompson will be managing a bespoke portfolio of pan-Asian, including Japan equities, selecting a 30-40 stock portfolio of the team’s best ideas from across all their strategies.
First State Investments (First State) is a global asset management business managing £126.4 billion in assets (as at 31 March 2017) on behalf of clients worldwide. First State offers investment capabilities across a range of asset classes and specialist investment sectors covering equities, fixed income, multi-asset and direct infrastructure. Whilst First State fosters an independent investment team culture there is a collective commitment to responsible investment and stewardship. First State Stewart Asia is an independent investment management team within First State managing small, mid and large cap Asia Pacific equity strategies. The team are long-term conservative investors with a focus on capital preservation as much as long-term growth. The principle of stewardship has been core to the team’s philosophy since the launch of its first Asian equity strategies in 1988.
Ben Leyland and Robert Lancastle will be managing a bespoke portfolio of Global Equities, typically of 25-40 stocks with authority to take significant (up to 50%) cash exposure if they deem it necessary to protect shareholder value.
J O Hambro Capital Management (JOHCM) is an active asset management company with a performance-led culture. From offices in London, Boston, New York and Singapore, it manages £28.1 billion of assets (as at 31 March 2017) across a range of long-only equity funds and segregated portfolios, with expertise in UK, US, European, Asia ex Japan, Japanese, Global/International and Emerging Markets Equities. It wants to be the best investment house, not the biggest, and imposes capacity constraints on all of its funds at launch. And its fund managers have complete investment freedom – there is no ‘house’ view on economies, markets, sectors or stocks.
Per Lekander will be managing a bespoke portfolio of global clean energy equities, typically of 15-25 stocks.
Founded in 1998, Lansdowne Partners is one of the world’s leading investment partnerships, managing in excess of £15bn for a diversified client base that includes some of the world’s largest and most sophisticated investors. Lansdowne operates five separate investment strategies, each with its own dedicated team of portfolio managers and analysts. The firm’s objective is to generate compelling long term financial returns by employing exceptional investment talent within a leading-edge operational and compliance infrastructure.
Willis Towers Watson is a leading global investment advisory business. It is the founder of the Thinking Ahead Institute: a not-for-profit member organisation aimed at changing the investment industry for the benefit of the saver.
Its Thinking Ahead Group has researched and promoted the merits of long-term, sustainable investment, which its clients have benefited from for over a decade.
Willis Towers Watson has roots dating back to 1828 and has 39,000 employees in more than 120 countries.
Willis Towers Watson are the intended investment advisors to The People’s Trust and in that role they will help us to select, negotiate terms with and monitor investment managers that manage the Trust’s assets. In doing this they will help us look for managers with the skills and track record to deliver against our objectives. Working with their 110-person manager research team, we will be able to consider all appropriate managers on a truly global basis.
Charles Russell Speechlys is a law firm headquartered in London with offices in the UK, Europe and the Middle East, with a focus on financial services and investment funds.
They have an unusually broad range of skills and experience across the full spectrum of business and personal needs. This gives them a wider perspective, clear insight and a strongly commercial long-term view. They use this approach to secure the growth of their clients as they move confidently into the future.
Charles Russell Speechlys is acting as legal adviser, supporting the launch of The People’s Trust.
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How can I tell if this is a real company?
You can check our details at Companies House
How do you back up the claim that The People’s Trust will be run for my benefit and nobody else’s?
The People’s Trust will be an independent investment company, listed on the London Stock Exchange, just like the Royal Mail or Sainsbury’s. This means that it will be:
100% owned by customers. To invest in The People’s Trust, you buy shares in the company, so its customers are its shareholders and own 100% of the shares. As a customer, by investing in The People’s Trust, you become a shareholder, which makes you an owner.
Not controlled by a profit-seeking company. The People’s Trust is an independent investment company, so it’s not controlled by any commercial organisation that is seeking to make a profit. Instead, The People’s Trust is an independent company, controlled by an independent Board of Directors who are accountable only to you and whose duty is to promote and protect your interests.
No massive bonuses for executives creating short-term incentives and distorting decision-making. The People’s Trust’s employees will not have any bonus scheme. They’ll get paid a salary and part of their salary will be paid in shares of The People’s Trust that they’ll be required to hold for at least seven years. This means that there’s nothing that the employees responsible for running The People’s Trust can do to earn more money that could push up costs or increase risks but their interests are perfectly aligned with yours. They do well if The People’s Trust’s investments do well – and, like you, they’ll want The People’s Trust to do well at the lowest cost possible.
A long-term approach. The financial system is driven by short-term incentives that lead to short-term perspectives and behaviours that lead to poor long-term outcomes. But it is very hard for commercial organisations that are under pressure from shareholders and employees to adopt radical change. The People’s Trust will take a very long-term approach, which we believe will lead to better results in the long term and a positive impact on companies’ behaviour – and, ultimately, to a better economy and a fairer society.
I understand that The People’s Trust will be run for my benefit, but that still doesn’t guarantee that it will perform well, does it?
No, nobody can guarantee that. What we do believe is that, by doing some simple things well, we can give our investors the best possible chance of doing really well over long periods of time.
Our basic proposition is to focus on making investments on your behalf that our investment managers believe are capable of sustainable success over the long term (ten years plus), and we will chop and change as little as possible (which keeps trading costs to a minimum). If we can do that well over long periods of time we believe that we are highly likely to deliver returns to investors that are considerably better than leaving money in cash on deposit and significantly better than the average returns of stock markets as a whole.