In a statement, chief executive Daniel Godfrey expressed his “disappointment and regret” that the launch of the investment trust had been binned due to a lack of support from institutional investors and discretionary wealth managers.
According to Godfrey, TPT received a “significant level” of interest from retail investors, but this was not enough to hit the make-or-break £125m necessary to float the trust on the London Stock Exchange and the Social Stock Exchange, as planned.
He said: “There was every indication that had we achieved critical mass, The People’s Trust would have gone on to thrive. Disappointingly, this was not to be. Unfortunately, retail investor interest alone, whilst substantial, was not enough in the absence of sufficient additional support from institutional investors and discretionary wealth managers.”
Godfrey previously identified the discretionary wealth manager crowd as a tough one to convince of the trust’s merits, given its multi-manager model would take away some of the asset allocation work they already do.
All investors who subscribed for shares will receive a full refund.
TPT initially garnered support from 2,500 founders, who collectively contributed more than £100,000 towards set-up costs in a crowdsourcing exercise late in 2016.
Godfrey added: “It’s always hard to break the mould. While we have not succeeded on this occasion, the case we have made for a fundamental change in the investment chain has definitely left some cracks.
“Our argument, for the investment chain to abandon its focus on short-term index-relative returns in favour of sustainable wealth creation and the stewardship to support it, has been widely accepted. One day it will happen - to the great benefit of investors, society and the economy.”