Star fund manager launches ETF-focused boutique

Exchange traded funds will be the core focus of Alan Miller's new investment boutique Spencer-Chu...

Exchange traded funds will be the core focus of Alan Miller's new investment boutique Spencer-Churchill Miller Private.

Two investment strategies will be offered through the boutique - one which behaves similarly to a managed pension fund with a long-term bias towards equities and the second will be an absolute return fund with a target return of cash plus 5%.

Miller, former CIO and founding shareholder of New Starm set up Spencer-Churchill Miller in March after leaving State Street.

The first portfolio will have a benchmark asset allocation of 70% equities, 22.5% bonds and 7.5% cash.

Both will be concentrated in the largest and most liquid ETFs, with minimum investment per client £1,000,000.

The AMC will be 0.75% with a performance fee of 5%.

As well as managing money, Spencer-Churchill Miller Private will also offer an off-market property transaction service headed up by Alexander Spencer-Churchill. Details are still being finalised with a launch slated for later this year.

Investments will be held in clients' own names through Bank of New York Mellon subsidiary Pershing Securities Limited.

Miller, who hit the headlines in 2005 for his high-profile £5m divorce settlement, says too many fund managers are underperforming their benchmarks and overcharging fees, which are increasingly difficult to justify.

He says: "The modern age seems to have completely bypassed most private client managers. 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."