While at Credit Suisse, Mott was the industry’s outstanding UK income manager for a long time.
Mott has just launched the PSigma income fund and will run it in the same way. His philosophy is based on a traditional top-down style and will be managed with the goal of achieving longterm outperformance of rival income funds.
He will be looking for companies which have strong cashflow and balance sheets with good valuations coupled with strong market positions or weak competition. He believes the current market turbulence is bound to throw up more investment opportunities.
On the positive side, Mott believes that the emergence of the Bric economies of Brazil, Russia, India and China will boost the world’s potential output and hence its future prosperity for many years to come. Interest rates are rising gently in many parts of the world but absolute levels of interest rates remain low and inflation is under control. Corporate profitability is excellent and the outlook for profits growth remains encouraging.
The UK market also does not look expensive by historic comparisons. However, Mott does see some negative points, particularly that the US and UK have dangerously big trade deficits and there is excessive global liquidity, resulting in some asset bubbles appearing, particularly in the property world.
On balance, the positive points outweigh the negative ones. This fund is a must for all income investors, trustees, Isa and self-invested personal pension investments.