Bill Mott has revealed he will further shrink the number of holdings in his PSigma Income fund in the belief lower market volatility has reduced stock-specific risks.

Since his days running UK equity income money at Credit Suisse Asset Management, Mr Mott has already become one of the most closely watched managers in the two IMA UK equity income sectors, often seen as two of the premier leagues of UK retail funds. But his move may acquire additional significance as he usually runs highly diversified portfolios based primarily on macroeconomic perspectives.