Jupiter’s new CEO faces rockier ride

2 minute read

A man points at a computer screen showing stock information in this illustration photo taken in Bordeaux, France, March 30, 2016. REUTERS/Regis Duvignau

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LONDON, June 28 (Reuters Breakingviews) - Struggling British fund manager Jupiter (JUP.L) is appointing a new chief executive, with incumbent Andrew Formica set to return to his native Australia after just three years in charge. His successor, insider Matthew Beesley, has his work cut out.

Formica, the former boss of Henderson where Beesley also once worked, has had to contend with a pandemic and the progressive loss of client money in Jupiter’s core business of UK retail equity and bond funds. The 2020 acquisition of Merian was supposed to correct that by diversifying its product range and bringing in more money from long-term investors like pension funds. Yet Jupiter is still focused mainly on retail investors, and is still shrinking. Assets under management in the first quarter were 55 billion pounds, 15% less than when the Merian deal was announced. Jupiter’s stock has nearly halved since Formica took over. It will now have to contend with falling markets as central banks rein in stimulus, and a cost-of-living crisis in the UK. Barring an unlikely M&A thunderbolt, investors face a long wait for recovery. (By Neil Unmack)

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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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