Eden Financial UK equity fund manager Leigh Himsworth and global equity income fund manager Dan Roberts say their new funds will not invest in banks.
Himsworth and Roberts joined Eden Financial from Gartmore in July.
Himsworth will launch the CF Eden UK select opportunities fund in August and Roberts will launch the Eden global equity income fund later this year. Both funds will have 40 to 50 holdings and the managers will not take more than a 5 per cent holding in a single stock.
Himsworth says banks have lost credibility in the advice sector and he is concerned that they do not understand potential liabilities on their balance sheets.
He says: “Banks have done a good job of destroying trust in terms of financial advice. Investors are now seeking independent advice from the likes of Hargreaves Lansdown or wealth managers. I do not want to be near banks because I am not sure they understand what is on their balance sheets, so we are unaware of the potential liabilities in the future with sovereign debt problems.”
Roberts says: “I have been through the accounts at one high-street bank and in the end I gave up. Transparency is minimal, gearing is high and if something does go wrong economically there is no margin of safety.”