Andrew Formica, former CEO of Henderson, will be joining Jupiter Asset Management (JUP) as chief executive from March 1. Current Jupiter chief Maarten Slendebroek, who has led the firm for the past five years will step down on May 1 after a short transition.
Formica resigned as CEO of Janus Henderson in August last year, though he stayed on in an advisory capacity to aid the transition. He was succeeded by Dick Weil, his fellow co-CEO. The merger between London-based Henderson, led by Formica for a decade, and Colorado-based Janus Capital Group, headed up by Weil since 2010, was finalised in 2016.
In a statement to the stock exchange this morning, Jupiter confirmed the board intended to appoint Formica as Chief Executive Officer and as a Director of Jupiter with effect from March 1, subject to customary regulatory approvals.
Formica said he was impressed with Jupiter’s “talented people and distinct investment culture” and that he looked forward to “helping develop its increasingly global franchise”.
“Jupiter's relentless focus on delivering value to clients through genuinely active investing means it is well positioned to succeed in an evolving industry,” he added. “Its track record of strong investment performance for clients has enabled it to deliver significant organic growth, delivering cumulative net flows of some £5.8 billion over the last six years. I look forward to working with all of my new colleagues at Jupiter and believe the Company's growth prospects are strong."
Slendebroek succeeded Edward Bonham Carter in the role of CEO in 2014, who floated the firm on the stock market in 2010. Bonham-Carter held the CEO position for 14 years and currently acts as Jupiter’s vice chairman. Slendebroek joined Jupiter from BlackRock.
Under Slendebroek the London-based fund manager has grown assets under management from £29.93 billion to £42 billion at the end of last year. Slendebroek has been credited with internationalising the firm, with £5.5 billion of the £5.8 billion inflows seen under his tenure from outside the traditional UK market.
What the Analysts Say
Jupiter currently carries a positive Parent company rating from Morningstar fund analysts.
“Jupiter has grown from modest beginnings to become an established asset manager with more than £40 billion in assets under management. Following its management buyout in 2007, it took on a high debt load, but this was subsequently paid down, leaving the firm more financially secure today,” says Morningstar fund analyst Sam Meakin.
“The majority of the firm’s assets are in equity funds, but the fixed-income side of the business has grown significantly over recent times, in terms of both assets and resources dedicated to the asset class, and the multi-asset capability continues to grow. All funds are managed at the firm’s London investment centre, which houses approximately 40 fund managers.
“We think Jupiter rewards its managers with a sensible incentive structure, offering a deferred bonus plan, with investment performance a critical determinant, based on one-, three-, and five-year relative performance, with the largest weighting to the three-year period. The structure has fostered stability at the firm, with manager turnover generally remaining low.”
