Alan Miller, former New Star manager, has launched a new wealth management boutique with Alexander Spencer-Churchill in response to what he call ‘the discredited’ industry of traditional wealth managers.
Alan Miller, former New Star manager, has launched a new wealth management boutique with Alexander Spencer-Churchill in response to what he call ‘the discredited’ industry of traditional wealth managers.
Miller says: ‘Enough is enough. Many private clients are fed up with the service they’ve been getting from their fund managers and larger banks. I wanted to do something that was different and addressed people’s main objections.’
Spencer-Churchill Miller Private will showcase a low management fee (0.75% per year) and 5% fee on annual gain, while investing in transparent and accessible ETFs, and will not charge for products from third parties; if the third parties charge, only the charge will be passed on.
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‘Unlike other managers, we’re not pretending to be the best stock-pickers in the world,’ says Miller. ‘We’re going to invest in the right market which is the most important decision. Because we’re investing in ETFs, you can drill down and see your portfolio.’
Money will be held by a third party (Pershing Securities Limited, owned by Bank of New York Mellon) in the clients’ own names to make their money accessible.
As an indication of trust, Miller says that ‘the first client is me – and hopefully the others will follow.’
The problem with the rest of the wealth management industry is that ‘they tried to create a mystique quite often to launch products which the clients didn’t understand in order to justify higher fees,’ says Miller. ‘I’m completely scathing of structured product funds.’
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Alexander Spencer-Churchill, the other half of the business, will be launching a property fund later in the year; Miller said details would be forthcoming.
