Jupiter boss quits to ‘sit on the beach’
THE boss of one of Britain’s leading fund managers has announced plans to return to Australia to see his family and ‘sit at the beach’.
In a surprise statement to the stock market, Andrew Formica said he will stand down as chief executive of Jupiter Fund Management in october after less than four years in the job.
The 51-year- old’s tenure has been marked by a sharp fall in the share price and billions of pounds of ‘outflows’ as investors withdraw their savings from Jupiter funds. Jupiter looks after £55bn of savers’ cash.
Formica, an Australian married father of four who has been in the UK for nearly three decades, plans to move back to Sydney with his family to be closer to his elderly parents.
‘I just want to go sit at the beach and do nothing,’ he told Bloomberg. ‘I’m not thinking about anything else.’
The company added: ‘Andrew has always been very clear with the board that his longer-term plans would involve the relocation back to his native Australia with his family. He feels now is the right time to hand over the leadership of the business.’ Formica, who has been paid £5.6m since taking charge in March 2019, will be replaced by chief investment officer Matthew Beesley. Formica joined Jupiter from Janus Henderson and oversaw the takeover of Merian Global Investors for £390m in 2020.
Jupiter has struggled in recent years, with its shares down nearly 75pc since their peak in early 2018, and more than 50pc since Formica took over. The stock fell 1.1pc, or 1.7p, to 155.6p yesterday. The group has also seen around £4bn of outflows a year over the past four years as investors, worried about the performance of its funds, withdrew their savings.
A number of popular fund managers are suffering amid ructions on financial markets in the face of soaring inflation, rising interest rates and the war in Ukraine.
lindsell Train Investment Trust has lost nearly half its value since its peak three years ago.
Despite the troubles faced by Jupiter, sources said the board was ‘disappointed’ by his decision to stand down after little more than three years.
Chairman Nichola Pease, who recently split from her husband Crispin odey, the hedge fund tycoon, said: ‘I would like to thank Andrew for his significant contribution over the last three years. Andrew has been an excellent leader throughout a highly challenging period for the business, the industry and indeed the world. He leaves with the board’s very best wishes.’
Jupiter was set up by John Duffield in 1985 and past chief executives include Edward Bonham Carter, the brother of actress Helena, who is now vice-chairman and owns a £15m stake.