Alan Miller, former chief investment officer and one of the founders of New Star, is setting up wealth management company.
Miller, who left New Star in February 2007 and managed the groups UK Growth fund until 2002, has teamed up with Alexander Spencer-Churchill to launch Spencer-Churchill Miller Private.
At launch, the company will offer two portfolios based entirely on exchange traded funds (ETFs) and according to a release, Millers plan is to revolutionalise the private client wealth management industry.
This is because the two products will a carry low annual management charge of 0.75%, although there is a 5% annual performance fee attached.
The first product will be a broadly diversified portfolio similar to a managed pension fund, while the second will be more absolute return orientated. The minimum investment for both is 1m.
In a statement Miller says: In my view, clients of wealth managers have received a dreadful service and as markets have fallen, the extent of this has become clear. Given this and the current market turmoil, now is a great time to launch a new wealth management proposition.
Founded on the principles of trust, honesty and integrity the new company says most fund managers underperform their benchmark and the compounding of high fees destroys investors capital over the long term.
It adds: the combination of high profile frauds, numerous fund suspensions or reorganisations and disastrous performance from previously large and respected fund management names have completely tarnished the industry and its reputation.