Jupiter prepares for restructuring under new chief

Jupiter Asset Management’s incoming chief executive is preparing for a restructuring to slash costs and revive growth following years of investor outflows.

Matthew Beesley, who steps up to become chief at the start of October, said in an internal memo that the group had undertaken a detailed operational review of the business, noting that there would be further announcements soon, according to two people close to the situation.

The review comes as Beesley, who has been promoted from deputy chief executive to replace outgoing boss Andrew Formica, attempts to put Jupiter back on the path to growth. The fund group has suffered net outflows in 17 of the past 18 quarters, according to analysts at Panmure Gordon.

The memo said some changes had already been made. Veronica Lazenby, chief risk officer, is leaving the company. The role will be split, with individual heads appointed to lead risk and compliance separately, the people said.

Chief financial officer Wayne Mepham will take overall responsibility for the two functions, while Katie Carter has been named as head of compliance. The head of risk has yet to be appointed, although Jupiter is working with consultants at KPMG to support the team in the meantime.

Jupiter’s assets under management dropped by a fifth in the first half of this year to £48.8bn, largely as a result of declining markets. Pre-tax profit fell by two-thirds to £18.8mn compared with the same period last year.

Formica said at the time that the group’s assets and net outflow position was “disappointing”, noting that it “remains the board’s highest priority to improve the performance of the group”.

Shares in the FTSE 250 company have fallen about 60 per cent this year. The group is chaired by Nichola Pease, who took on the role in 2020.

One analyst said Jupiter could slim down its extensive fund range by merging some of its subscale products, to benefit investors and help cut costs. But he added the group could also broaden its offering, which is heavily focused on UK equities after its acquisition of fund boutique Merian in 2020.

Beesley joined Jupiter at the start of the year from Artemis, where he was chief investment officer. He previously worked at fund managers GAM and Henderson Global Investors, before its merger with Janus.

Jupiter said: “Matt Beesley is taking over as CEO at the beginning of October. In the meantime, a process of transition is under way.

“As an incoming CEO he has naturally been conducting a wider review of our operating model and staff have been informed of this.”