View more on these topics

Miller’s set-up makes debut with ETF duo

Former New Star chief investment officer Alan Miller has unveiled his new business venture with two initial exchange traded fund offerings.

Miller says his new business, Spencer-Churchill Miller Private, which he launched in March, will look to revolutionise the private client wealth management industry.

The first product will be run 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 large and liquid ETFs and will have a minimum investment of £1m. The two products will have an annual 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.

Research from Spencer-Churchill Miller Private shows that the wealth management sector is growing but 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.”

Values to Vision Financial Planning founder Nick Lincoln says: “I agree that active management charges are too high but I feel a 0.75 per cent annual management charge for a set of ETFs is also pretty steep.”

Recommended

Age concern

As the Isa consultation period closed, providers and advisers anxiously await clarity on the temporary rise in allowance for those over the age of 50.

Tech IPOs: The outlook in 2017

Ali Unwin, CTO & Fund Manager, Neptune 2016 was a weak year for technology IPOs – only 13 US venture-backed tech IPOs hit the market, in spite of fairly high public market valuations and investor appetite. Will 2017 be different, asks Neptune CTO & Fund manager Ali Unwin. Click here for article Important Information Investment risks Neptune […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com