Allan Miller, CIO of London fund managment firm New Star, has left to form his own wealth management outfit. Miller is claiming to be leading a “revolution” in wealth management with plans to take his clients’ money out of expensive hedge funds and other managed funds and putting them into a managed basket of ETFs.

Miller explains that many wealth management clients are angry about their managers’ lousy performance over the past year, and fearful that the opaque tactics of the wealth management industy could be hiding another Madoff. “Many high net worth individuals are looking for a new approach to wealth management focused on superior performance, fairer charges and greater transparency”

The new firm will charge a .75% annual management fee and a will take 5% cut of the funds performance. This contrasts greatly with the 2/20 structure of the hedge fund industry, a relevent comparison since in many respects Miller will be simulating a hedge fund strategy with ETFs. Spencer-Churchill Miller Private, however, promises not to freeze clients out of their money and will keep their assets in individually named acounts at a custodial bank.