Appealing to the disenchanted

For a growing number, it’s not enough that they should feel good about their investments, but that their investments should do good: hence the growth of ethical and “sustainable” funds in recent years.

This week sees the launch of The People’s Trust, aimed at offering a handsome return for investors through a long-term, high conviction and low turnover trust portfolio.

The trust – its stated purpose is “better returns for you and a better impact on society” – is the brainchild of former Investment Association director Daniel Godfrey. He has crowd-sourced more than £100,000 from 2,500 “founder investors” to cover set-up costs. Godfrey believes “growth will create a trust with low costs, high transparency and accessibility to people currently outside the long-term savings market”.

That’s a noble aim – and one the industry badly needs: attracting younger investors is more of a struggle today with low growth in pay and household incomes and a notable distrust and disdain among many for “fat cat” corporate bosses, the runaway gravy train that is “boardroom remuneration” and the marked emphasis on short-term performance and index-measuring that characterises much of fund management.

The People’s Trust should appeal to many disenchanted with what the stock market has to offer, and who are looking for a more socially responsible alternative.