Charlie Parker: like it or not, we should listen to Alan Miller

The former New Star chief investment officer Alan Miller is hardly a figure likely to unite the fund management industry behind a move towards greater transparency.

At New Star Asset Management he made a fortune, only to see his performance slide, and the business eventual disappear as it was sold to Henderson Global Investors.

So when he criticises excessive fees few are inclined to listen. Indeed he could hardly have a clearer vested interest as the manager of a new asset management company which exclusively uses passive investments.

Of course while he apparently believes that fund managers can no longer add value simply by being gifted, he still believes that he has a newfound gift for asset allocation for which he is happy to charge.

However, the fund management industry should resist the temptation to dismiss his campaign out of hand. Some competitors of Wealth Manager have sought to defend ‘our fund management industry’ against his perceived attack.

Such a defensive posture from the fund management community smacks of insecurity.

We should remember that sometimes poachers are the best gamekeepers.

There is probably no one in Britain who has had a clearer view of the excesses of marketing-fuelled asset management than Miller.

He has experienced the effects of a swollen ego as his fame as a manager shot to the stars, and also the crushing blows struck upon him as his performance failed.

As his personal life was blasted across the national press he experienced the pain as well as the pleasure of being a star fund manager.