Bill Motts’ dramatic decision to come out of retirement and return to day-to-day fund management is like the third coming according to Hargreaves Lansdown head of research Mark Dampier.
Dampier says that Mott, who is joining forces with former managing director at Credit Suisse Ian Chimes, has almost legendary status among intermediaries and his return is not only good news for them but a massive coup for PSigma Investments.
He says: “This has really put PSigma on the map. The fact that Bill Mott is running money is often enough to sway advisers minds alone and his decision will quickly establish them as a major boutique in the market.”
Mott had previously held a number of roles at Credit Suisse, including both managing and advising on the groups’ flagship income funds. Dampier says that Motts’ move is bad news for Credit Suisse as they have lost the one person that they could rely on even in retirement. He says: “If advisers haven’t already taken money out of Credit Suisse the loss of Mott may well sway their minds for sure.”
Mott had been jumping in and out of the income funds for quite some, retiring as recently as October last year only to return days later as a consultant following Errol Francis’s departure.
Chimes, says: “Bill did feel that after 30 or so years with Credit Suisse he couldn’t simply ignore the groups’ need for help following Errols’ departure on the income range. But his work with them ended last year and he is free to start with the newly formed PSigma Asset Management with immediate effect.”
Worldwide Financial Planning managing director Peter McGahan agrees that Motts’ return is great news for advisers and investors.
He says: “It would be difficult for any adviser to ignore Bill Motts’ return. His track record is exemplary as almost anything with his name next to it has been successful.”
“Not only is he a great stock picker and follower of economy but he also has a talent for making the right strategic decisions,” adds McGahan.
Dampier says Motts’ return to fund management may have been swayed by the idea of purely managing money rather than being involved in the politics associated with larger financial firms.
He says: “It is almost the utopian model for both Mott and intermediaries as like all fund managers all he will be doing is managing money and nothing else.”
Mott had previously made his displeasure at the sales and marketing responsibilities associated with managing the Credit Suisse income and monthly income funds known when they passed over to Leigh Harrison back in 2003.
Chimes says the appointment of himself, Mott and Graham Fuller was almost a reunion of sorts. He says; “Punter Southall approached us about the opportunity to bolster the investment side of their business and it allows to focus purely on running money the way we see fit. It also brings us together with some 12 or 15 members of staff from the early days of Credit Suisse.”
It is understood that meetings between the three founding members of PSigma Asset Management and the Punter Southall Group are likely to take place in the next few days.
Dampier believes the group will quickly move into action. He says: “It is a huge undertaking for the group to make these addition and I would expect more than just an equity income vehicle to be in the works as they will needs funds under management in order to pay the bills.”