Fund star hits out at rivals

FORMER New Star hedge fund heavyweight Alan Miller has issued a blistering attack on some of his peers, ahead of the launch of his wealth management boutique today.<br /><br />Miller, part of the original team that ditched Jupiter to join John Duffield&rsquo;s New Star, said a number of fund managers are locking in their clients&rsquo; funds against their will.<br /><br />&ldquo;Surely the right thing to do is to endeavour to get their money back to them,&rdquo; he said.<br /><br />Many funds have halted withdrawals during the recession as they have made investments that have plummeted in value and are difficult to sell, leading to a lack of liquidity.<br /><br />&ldquo;I would endeavour to make sure that whatever liquidity is in the fund would go straight to clients, and sell remaining assets at whatever their market value is to return the money to clients who want it now,&rdquo; said Miller.<br /><br />He said too many fund managers charge exorbitant management fees and refuse to apologise for mistakes.<br /><br />He has pledged to &ldquo;dare to be different&rdquo; with his Spencer-Churchill Miller Private group, which will trade only in exchange-traded funds that offer ultra-high liquidity and ultra-low fees. As a result he will charge an annual fee of just 0.75 per cent and a 5 per cent fee on outperformance.