Credit Suisse fund chief Mott defects to set up rival business

Bill Mott, one of the City's most respected fund managers, announced an unexpected return to the front line yesterday, unveiling plans to defect from Credit Suisse, where he stepped back from day-to-day fund management four years ago,to launch a new asset management boutique.

The new operation, to be called Psigma Asset Management, will be 50 per cent owned by Mr Mott along with two former Credit Suisse colleagues - Ian Chimes, a marketing executive, and Graham Fuller, a fund manager. The remaining 50 per cent will be owned by consulting actuary Punter Southall, which already runs a discretionary fund management business called Psigma Investment Management.

Mr Mott, who has a PhD in quantum physics, made his name managing Credit Suisse's Income and Monthly Income funds, which have been among the best long-term performers in their sector. However, in 2003 he withdrew from the day-to-day management to take a more strategic role within the firm. In his new guise, he will be back managing money on a daily basis, with a new equity income fund.

Mr Fuller was head of pension funds at Credit Suisse Asset Management (CSAM) for six years in the 1990s before moving to Newton Investment Management. Mr Chimes is a former marketing director at CSAM.

Financial advisers yesterday began telling clients to abandon Credit Suisse's funds after the news of Mr Mott's departure. Philippa Gee, the investments director at Torquil Clark, described his exit as "the final nail in the coffin of what was once an illustrious pair of funds".

"In our view, apart from a strong multimanager offering, Credit Suisse has really lost its way in recent years," she added. "It will take radical action on their part, if they are to claw their way back to success."

Mr Mott, 56, said he could not resist the temptation to move back to day-to-day money management, adding that he had been tempted by the opportunity to work in a "dynamic and free-thinking environment" with a team of highly regarded former colleagues.