The chief executive of Jupiter Fund Management has announced he is stepping down, saying the “initial phase” of the businesses’ transformation has completed.
Andrew Formica will step down in October this year, and will be replaced with chief investment officer Matthew Beesley, subject to regulatory approval.
In a statement to the stock exchange this morning (June 28), Jupiter said Formica will return to Australia with his family, as has been his long-term plan.
“With the initial phase of Jupiter's business transformation completed [Formica] feels now is the right time to hand over the leadership of the business, to enable the next phase to have consistent and strong leadership throughout that period," the company said.
Beesley will take up the role of CEO at a turbulent time for the company, which struggled with severe outflows of £1.6bn in the first quarter of the year.
Market commentators have said the outflows make it vulnerable to a takeover, despite Formica saying earlier this year that Jupiter does not see itself being part of the current wave of consolidation in the sector.
The outflows are focussed mainly in the group’s European and UK equity funds, but also in the Merian funds, a fund house taken over by Jupiter in 2020.
Last month, former board member Jon Little criticised the fund house, saying it has "lost its way" and needs to change its management and strategy.
Little took aim at Formica, saying his appointment was a “mistake”, and the selection process was undertaken with “undue haste and without proper consideration of the risks involved”.
He also suggested the company's drop in share price seen over the past few years was “self inflicted”.
At the time Jupiter said: “We listen to and respect the views of our shareholders and will respond to Little directly.
“We have a clear, consistent strategy which we are focused on executing.
“We are confident that we have the right foundations in place to deliver on this, underpinned by our strong capital position.”
Succession planning
Following his relocation, Formica will remain with the business until June 2023, to assist with the support of the Asian business and development of the Australian market offering.
He will also remain on the board of NZS Capital as Jupiter’s representative until 2023.
Beesley joined the firm in January this year from Artemis Investment Management where he was chief investment officer.
He was previously head of investments and equities at GAM Investments, and head of global equities at Henderson Global Investors.
Formica said despite the challenging period, the company has continued to “deliver for our clients with strong investment performance” and a focus on high conviction active management.
He said: “Whilst it is always hard to find the right time to hand over, we have made significant progress against our strategic priorities ensuring that Jupiter is now a more diversified and resilient business, has enhanced positions in critical areas such as sustainability and data science and has the right building blocks in place to support long term growth.”
sally.hickey@ft.com
