Jupiter has recruited Andrew Formica to lead the business

Jupiter has recruited Andrew Formica to lead the business

Industry commentators have welcomed the appointment of former co-CEO of Janus Henderson Andrew Formica as chief executive of Jupiter Fund Management, but warned the task of turning around the asset manager will be no mean feat.

Formica is expected to take over as CEO and director of the firm from 1 March, subject to regulatory approvals, it was announced this morning (22 January) with current CEO Slendebroek remaining in the business until 1 May to ensure a smooth leadership transition and handover.

Sophie Kennedy, head of investing at EQ Investors, said: "It's good to see Andrew Formica returning to the funds industry; we were surprised by his departure from Janus Henderson. He certainly has a big job on his hands at Jupiter."

Morningstar said in a statement that it did not expect "any sea change in the firm's strategic direction nor any changes to Jupiter's investment teams" and would be maintaining its "positive view of Jupiter as a parent" and not making any changes to its analyst ratings on the group's funds.

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Samuel Meakin, senior manager research analyst at Morningstar, said: "Jupiter is home to a number of experienced portfolio managers, and manager/analyst turnover has generally remained low. We will continue to monitor the situation as it develops in due course."

Despite Jupiter previously ruling out mergers and acquisitions, industry commentators said the appointment fueled speculation the firm was on the acqusition trail.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Andrew Formica's appointment as CEO, and his prior record of deal-making will no doubt fuel the perennial speculation that M&A activity lies around the corner for Jupiter.

"However the fund management group has defied such expectations until now, and part of its success lies in the independence of its managers from any wider house view, which has allowed it to maintain a boutique culture while growing into a sizeable firm.

"Active fund management is under pressure from weak inflows, increased regulation and the encroachment of passive strategies, so ruling out consolidation would be foolhardy.

"But Jupiter has some exceptional fund managers in its stable, and if it ain't broke, there's little call to fix it. Andrew Formica clearly comes with a wealth of experience, and we can probably expect him to spell out his strategy at Jupiter's interim results at the back end of July."

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