New Jupiter CEO faces tougher ride

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

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 at the helm. His successor, insider Matthew Beesley, has his work cut out for him.

Formica, the former boss of Henderson where Beesley also worked, has struggled with a pandemic and the gradual loss of client money in Jupiter’s core business, equity and bond funds from retail in the UK. Merian’s acquisition in 2020 was supposed to fix that by diversifying its product line and attracting more money from long-term investors like pension funds. Yet Jupiter is still primarily focused on retail investors and continues to decline. Assets under management in the first quarter were £55bn, down 15% from when the Merian deal was announced. Jupiter’s stock has almost halved since Formica took over. It will now have to deal 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 a recovery. (By Neil Unmack)

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