Spencer-Churchill Miller Private is planning two offerings to be based purely around the use of exchange traded funds.
The first product will be managed in the same vein as a managed pension fund. The product will have a long-term bias towards equities with a benchmark exposure of 70 per cent. Bonds and cash will account for 22.5 and 7.5 per cent of the portfolio respectively.
The second offering is set to be an absolute return offering that will be managed on a more aggressive basis, with the aim of beating cash by 5 per cent.
Both will make use of a number of liquid ETF’s and will have a minimum investment of £1m. The two products will have an annual management charge of 0.75 per cent with a performance fee of 5 per cent.
All investments will be held in the client’s own name via Pershing Securities Limited, a Bank of New York Mellon Corporation subsidiary.
Despite research from Spencer-Churchill Miller Private that shows that the wealth management sector is growing, Miller says many clients of wealth managers have received a dreadful service which has been highlighted by the recent fall in markets.
He says: “The status quo of the City has been maintained by taking advantage of clients’ loyalty through poor performance often being combined with high management charges and dealing costs. We have been astonished why various fund managers should unashamedly charge their clients various mark-ups from third parties rather than just receive a pure investment management fee for offering a pure investment service.”