IFAs that outsource fund management may be "abdicating their responsibilities," according to the founder of Belfast-based firm Carrington Wealth Manager.
The founder, Steve Laird, argues that it is essential that advisers know, or have a good relationship with, someone who knows exactly what their clients are investing in.
Carrington offers fund management alongside traditional wealth management, advisory and planning services.
"A lot of funds are not currently what they seem. When you look into them, they contain short positions when they initially looked as though they were made up of just long positions.
"We avoid shorts wherever possible. We believe in real assets, these short positions are just a form of gambling.
"It's vital that customers and we as advisers are aware of what our clients are are investing in. I believe it's an abdication of responsibility not to really dig into the constituent parts of these funds.
He added: "Traditional fund managers tend to be formulaic unless they are paid a lot of money, while advisers like us will accept clients with just £40k to invest."
Laird explained that the company would now be looking at exchange traded funds, as well as traditional tracker funds and investment trusts when compiling portfolios for its customers.
The Belfast-based firm is currently negotiating a merger with a second advisory firm that Laird said would benefit from its expertise in fund management. Laird expects the deal to to complete in January.
Carrington has also received several enquiries from IFAs looking for the same service.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m