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PSigma Income Fund

By Mark Dampier, Head of Research, Hargreaves Lansdown


Could this be the most exciting new fund of the year?

You shouldn't be surprised to see me backing the new PSigma Income Fund. The fund is run by one of the most experienced fund managers in the market, Dr Bill Mott. His track record is
exceptional. It invests in my favourite sector - equity income - and it's starting with a clean slate.

Bill Mott left Credit Suisse a few months ago. However I am glad to say that he has resurfaced at PSigma, a new fund management company he has formed with his former colleague Ian Chimes who was managing director of Credit Suisse. As one of the owners of PSigma he should be there for some time and doing what he loves - and what he is very good at - managing money. Like so many successful fund managers he found himself at Credit Suisse spending too much time on the administration and bureaucratic hassles of large fund management companies. He wanted to get back to the front line which I think is great news for UK investors.

Bill Mott will be running a traditional equity income fund and his record in this area is outstanding. His success to date has turned on his ability to read the UK and global outlook and then buy the stocks that prosper as a result although please remember all funds can fall in value as well as rise. Like one of his great contemporaries, Neil Woodford, he stuck to his guns during the technology boom recommending that investors bought good old fashioned high yielding companies. His investors were richly rewarded over the next few years for this highly out of fashion conviction although of course past performance is not a guide to the future.

His new fund will have a yield of 2.9% (net, variable and not guaranteed) with a portfolio made up of between 30 and 70 stocks. If you don't require the income it can be reinvested to boost the capital growth potential. He has already identified a number of companies that excite him and he feels the recent falls in the market have in fact given him even more opportunity to make money in the long term.

Those seeking an alternative to some of the other well known equity income funds will welcome the return of Dr Bill Mott. Bill is one of the best managers in the sector with a level of experience rarely found in the unit trust industry. Note too that he is investing a significant portion of his pension in this fund. This is undoubtedly one of my favourite launches for quite some time and I strongly suggest you consider investing.

The PSigma Income Fund is available through Hargreaves Lansdown with an initial saving of 5%. Investors can apply online with a debit card or download application forms or transfer forms from our website.

The Fund of the Month is written by Hargreaves Lansdown. An independent broker offering unit trust, stockbroking, pension and investment services.

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