Jupiter Asset Management’s incoming chief executive Matthew Beesley is preparing to restructure the business in a bid to stem outflows.
Beesley is set to take on the top role in October from Andrew Formica, who announced his exit due, in part, to a desire to return to Australia.
In an internal memo sent by Beesley, he said the company had undertaken a detailed operational review of the business and that there would be further announcements soon, according to FTAdviser's sister title the Financial Times.
The restructure is intended to slash costs and revive growth, while the memo also mentioned the exit of Jupiter’s chief risk officer, Veronica Lazenby.
Two sources told the FT this role will now be split, with individual heads appointed to lead risk and compliance separately.
Beesley was recruited at the beginning of this year as chief investment officer, 18 months after taking up the same position at the group’s rival, Artemis.
Jupiter has posted outflows of £1.6bn in the first quarter of the year. Gross outflows reached around £4bn a year for each of the past four years.
In 2018 and 2019 Jupiter posted two successive years of net outflows - though the company has since started posting inflows again.
But its assets under management ended the first half of 2022 at £48.8bn, down £8.1bn, which the company put down to volatile markets.
The outflows have come mainly from the group’s European and UK equity funds, but also in Merian funds, a fund house taken over by Jupiter in 2020.
When Jupiter bought Merian Global Investors in 2020, it was anticipated this would create a business with assets of £65bn.
Market commentators have said the outflows make it vulnerable to a takeover, despite outgoing boss Formica saying earlier this year that Jupiter does not see itself being part of the current wave of consolidation in the sector.
Back in May, former Jupiter board member Jon Little criticised the fund house, saying it had "lost its way" and needed to change its management and strategy.
He labelled Formica’s appointment a “mistake” and suggested the company's drop in share price seen over the past few years was “self-inflicted”. Jupiter’s share value has dropped by around 60 per cent of the past year.
A spokesperson for the firm said in response to Little’s comments that it had a clear, consistent strategy which it was focused on executing.
“We are confident that we have the right foundations in place to deliver on this, underpinned by our strong capital position,” they said.
In response to the FT’s report of the internal memo, Jupiter said: “Matt Beesley is taking over as chief executive at the beginning of October. In the meantime, a process of transition is under way.
“As an incoming chief executive he has naturally been conducting a wider review of our operating model and staff have been informed of this.”
ruby.hinchliffe@ft.com
