, which encourages its fund managers to take a seven year view with their investments will list in London on 17 October.
The brainchild of Daniel Godfrey, former chief executive of industry trade body the Investment Association, the trust will look for companies that “create wealth sustainably and over a long period of time” and invest in them with “real patience and stewardship,” he told Proactive.
Godfrey, who departed the IA after becoming too vocal on lower fees and greater transparency for the industry, says the aim is for a return of 7% annually over the seven years.
Five managers have been selected to run the trust’s money and giving them such relatively lengthy contracts means they can be ‘unleashed to do their best work’ without looking over their shoulder at the peer group or worrying about missing the index for a couple of years.
Atermis will run a UK small cap portfolio, Comgest a pan-European strategy, First State the Pan Asian portfolio, Jo Hambro has a global equities mandate while hedge fund Lansdowne Partners will run a clean tech-themed portfolio. In all, the fund will have about 130 investments.
will pay no performance bonuses to its managers nor to Godfrey, who will receive a chunk of his salary in shares.
“They [the fund managers] will be stockpickers” he adds.
“The mandates are very different but all have long term, high conviction, low turnover approaches that have been successful over long period of time.”
The Trust won’t be completely static, he adds, but turnover will be ‘low’.
Up to 5% of the Trust’s money will also be allocated to what Godfrey describes as social impact investing, where the target returns will be lower at 4%.
Retail investors will be the initial target, though if successful he believes a combination of better returns than the market with less risk and a positive social impact should appeal to anyone – ‘retail, high net worths or institutions’.
TPT is aiming to raise £125mln when the offer closes on 10 October to get it off ground.
Longer term, the plans are more ambitious. If it really takes off, Godfrey even can see the Trust evolving onto a multi- billion pound vehicle, with millions of investors and ‘making a real difference’.