Andrew Formica has cast doubts over the long-term feasibility of remote working as he pinpoints an interactive office culture as critical to Jupiter’s success after its acquisition of Merian.
During a webinar presentation on Tuesday morning Formica (pictured) said the FTSE 250 fund group had been able to “manage incredibly well” through the lockdown period and “operate as effectively as we were in the office”.
Zoom meetings and digital communication allowed managers to stay connected with each other and their clients, Formica said, and the number of funds that beat their benchmark over three years “increased considerably through this year” to 80% during one of the most challenging periods for markets in decades.
But in order for the fund group to sustain this momentum, returning to office life was essential, Formica said.
“I would say with this working from home situation – we’re leveraging past conversations, past cultures, past working practices. I don’t think it’s sustainable in that format forever,” he said.
Jupiter at odds with Schroders over remote working
This marks the second week Jupiter staff have been back in their offices in the Zig Zag Building in Victoria, London.
“Our managers are really enjoying that interaction with other colleagues and other managers to hear what they’re seeing and thinking,” Formica said. “And trying to find that path is really important I think to continue the great result that we’ve been able to deliver so far this year.”
Jupiter’s stance on working from home stands in contrast to rival asset manager Schroders which told its employees they could keep working from home indefinitely after the coronavirus subsides.
Others in the industry have expressed doubts over the feasibility of long-term remote working, including ex-Newton Investment Management boss Helena Morrissey who warned abandoning the traditional workplace would cause “grave damage” to the UK economy as well as a host of social and mental health problems.
See also: DFMs find merit in virtual fund manager meetings as government urges return to the office
Returning to office life key for Jupiter and Merian integration
Formica said heading back to the office would also be key in ensuring Jupiter’s union with Merian Global Investors is a success.
While Jupiter was able to complete its acquisition of Richard Buxton’s fund group on time despite the coronavirus, Formica said the pandemic had “delayed a number of decisions” concerning the integration of the two businesses.
“Clearly getting people back in the office has been delayed. And that’s so critical to the long-term cultural success that we’re looking through in this [acquisition].”
But he added there was already a strong synergy between the two cultures, with both firms sharing a belief in “high conviction active management”.
“What we’ve seen is the dialogue and the interaction has been really strong already,” he said. “I can’t wait to get everyone in the office, and really build upon the good work being done on that.”
See also: Jupiter faces challenges avoiding Standard Life Aberdeen fate as Merian deal completes
Jupiter not looking to buy other fund businesses
Formica dismissed the possibility he would be looking to buy other fund businesses in the near term.
“I can assure you I won’t be doing any more acquisitions, certainly in the short to medium-term,” he said. “What we’ve got really gives us a huge opportunity to push forward as a business on behalf of our clients.”
Jupiter finalised its acquisition of Merian on 1 July, creating a £50.7bn fund group. In the lead-up the fund group revealed it had shed £2bn in assets and profits had halved over H1 due to the coronavirus crisis and a spike in administrative costs related to the acquisition.
A revamped product range for the newly formed firm saw Jupiter replace several Merian fund managers with its own, including Lloyd Harris’ fixed income team who have since resurfaced at Premier Miton.
