Jupiter boss steps down ‘to sit on beach’

THE chief executive of Jupiter has stepped down from the fund manager just a month after a former board member called his appointment “a mistake”.

The London-listed fund house said Andrew Formica will retire from the company in October after only three years in the role and will be replaced by its chief investment officer Matthew Beesley.

His departure comes just weeks after Jon Little, a former Jupiter director, called the 2019 appointment of Mr Formica “a mistake” and said the selection process was undertaken with “undue haste and without proper consideration of the risks involved”.

In an open letter, he added that Jupiter, which manages £55bn in assets, had “lost its way” and needed to change its management and strategy.

Jupiter has struggled in recent years, with its share price falling by more than half since Mr Formica became chief executive in 2019. Mid-sized active asset managers such as Jupiter have been squeezed by passive giants such as Blackrock and Vanguard. Jupiter has averaged net outflows of £4bn a year for the past four years and posted outflows of £1.6bn in the first quarter of this year.

Mr Formica, an Australian who has lived in the UK for three decades, joined Jupiter from rival Janus Henderson.

Jupiter said Mr Formica “has always been clear with the board that his longer-term plans would involve the relocation back to his native Australia with his family”.

He told Bloomberg: “I just want to go sit at the beach and do nothing. I’m not thinking about anything else.”

Mr Formica will remain at the company to support its transition. Mr Beesley, his successor, only joined Jupiter in January.

Mr Formica said despite the challenging period, the company has continued to “deliver for our clients with strong investment performance”.