Veteran investor Bill Mott quits fund management

Fund manager who saw via the hype of the dotcom boom methods down from PSigma Earnings fund


Bill Mott, the veteran investor renowned for refusing to join the hysteria of the dotcom boom, is to quit fund management at the finish of the yr.

He will step down from running the PSigma Revenue fund at Christmas. The fund has come beneath the auspices of Miton given that its acquisition of PSigma final yr.

Eric Moore and Gervais Williams, the highly regarded smaller companies stock picker, will run the fund following his departure.

Mr Mott has been in charge of the PSigma Revenue fund given that its launch in 2007 but it has underperformed its peers, increasing by 22.5pc in contrast with 41.2pc for the FTSE All Share index.

In excess of the length of his job his benefits have been a lot more impressive.

“Looking back above Mott’s complete track record as a manager dating back to 1986, he has returned 846pc, in contrast with 403pc from the FTSE All Share. In other phrases he has returned 1.88 instances as significantly as the FTSE All Share,” said Laith Khalaf, an investment analyst at Hargreaves Lansdown, the fund store.

Mr Mott, who has a PhD in quantum physics, ran the well-known Credit Suisse Earnings fund for most of the Nineties but took a break from its day-to-day management in 1997, only to return in March 2000 with the tech boom at its height. As the bubble burst Mr Mott’s defensive investment fashion came into its personal.

In 2003 he stepped back from the day-to-day operating of the fund to turn into an adviser and Leigh Harrison took over. When Mr Harrison’s substitute, Errol Francis, himself quit in 2006, Mr Mott returned to oversee the fund for one more three months. In 2007 he left for the newly established PSigma Asset Management.

Ian Dighe, chairman of Miton, mentioned: “Bill has made an outstanding contribution to the fund management industry in the United kingdom. We would like to wish him a extremely satisfied retirement.”

What are the choices to Mr Mott’s fund?

Darius McDermott of Chelsea Financial Solutions, the fund shop, stated investors who at the moment held the PSigma Income fund could consider the Evenlode Earnings and Threadneedle Uk Equity Earnings funds as an alternative.

“Evenlode Cash flow is a comparatively unknown fund, with a bias in direction of massive firms,” Mr McDermott explained. “The manager, Hugh Yarrow, only invests in substantial-good quality cash-generative companies with sustainable returns. The investment method is really well defined. It is primarily based on the simple but efficient notion that, over the lengthy run, good quality will outperform and its large conviction prolonged-phrase method is refreshing to see.”

He stated the Threadneedle Uk Equity Revenue fund, managed by Mr Harrison and Richard Colwell, was designed to provide an over-typical degree of income, mixed with the possible for capital development.