Challenger investment trust fails to take off

The planned launched of new investment trust the People’s Trust has been cancelled after it failed to raise enough money from investors.

The trust aimed to challenge some conventions in the investment industry – including moving away from shorter-term investment periods and the bonus culture prevalent in much of the sector. However, the planned launch of the trust was halted this week after it failed to meet the minimum funding target of £50m – it had been aiming for £125m.

Daniel Godfrey (pictured), who was behind the People’s Trust, said that it failed to get support from om professional investors.

“There was every indicationdication that had we achieved critical mass, the People’s Trust st would have gone on to thrive.. Disappointingly, this was not to be,” he said.

“Unfortunately, retailil investor interest alone, , while substantial, was not enough in the absence of sufficient additional support from institutional investors and discretionary wealth managers.”

Mr Godfrey, who previously ran industry trade body the Investment Association before being ousted by members, added “it’s always hard to break the mould”. He had already crowdfunded £100,000 from “founders” to help fund the set-up and flotation of the company on the stock market.

Critics of the trust claimed it was not diversified enough while trying to be a “one-stop shop” fund, and others said the charges were too high compared to more established competitors. Figures from trade body the Associa Association of Investment Compa Companies show it has been a strong year for fundraising for investm investment trusts, with new launch launches raising £2.3bn across 14 inves investment companies so far this ye year. Last year there were ju just five investment c company launches, which raised £1.3bn.