The new firm, Spencer-Churchill Miller Private, will operate an annual management charge of 0.75 per cent as well as a performance fee of 5 per cent, according an emailed statement.

“There will also be exceptional transparency and liquidity. Alan is extremely critical of the wealth management industry and feels that many fund managers have forgotten whose money they are managing and that many are applying exceptionally high and unfair charges for a very poor service,” the statement said.

ETFs, which are listed and traded like individual stocks, enable investors to get exposure to different asset classes, such as equities, bonds and commodities, without the investor having to own the underlying components of an index. Some ETFs carry a total expense ratio of as low as 0.25 per cent or less, typically far less than the TERs on conventional index-tracking mutual funds.

Mr Miller has 19 years of experience as a senior fund manager, and launched the first UK equity long/short hedge fund in January 1997, the statement said. He managed this fund for more than nine years.

He also managed the Jupiter Investment Trust, which became the New Star Investment Trust, from its inception in May 2000 to the end of June 2006.