Richard Buxton, one of the UK’s most renowned asset managers, is to leave Jupiter Fund Management after nearly four decades. Buxton’s investment style is to hold stocks for the long term and to focus on approximately 30 to 35 stocks. Major holdings in his Jupiter UK Alpha fund, which manages £585m, include pharmaceutical company AstraZeneca, energy production firm Drax, natural resources group Glencore and Lloyds Banking Group. His departure comes amid a time of significant market volatility caused by the pandemic and jitters among retail investors. His departure caps a career in asset management spanning 40 years, during which the industry transitioned from the era of “star” asset managers to the proliferation of low-cost index trackers.
Buxton’s departure from Jupiter
Buxton is expected to leave Jupiter in late August, handing over the UK equity fund that he oversees to Ed Meier and Errol Francis, according to sources. While it has consistently outperformed its peers over the past decade, UK equity funds, including the Jupiter UK Alpha fund, have come under pressure recently. According to data provider Trustnet, Buxton has returned an average annual rate of 8% over the past two decades, outperforming the average UK asset manager return of 0.9% over the past year.
Buxton’s career
Buxton began his career at Brown Shipley in 1985 as an investment trainee before joining Baring Asset Management, where he became head of UK equities. In 2001 he moved to Schroders, where he managed the UK Alpha Plus fund and the group’s UK equity team. Over a decade later, he moved to Old Mutual Global Investors, where he became CEO and led a 2017 management buyout with backing from private equity firm TA Associates. The clipped business, renamed Merian Global Investors, was sold three years later to Jupiter for £370m.
Buxton on shareholder rights and corporate governance
Buxton, known for his outspoken views on shareholder rights and corporate governance, has long been critical of dual-class shareholding structures that dilute investors’ voting power in favor of founders, and he has spoken out on corporate deals and boardroom squabbles. He has also criticized corporate governance, calling Marks and Spencer’s decision in 2008 to merge the roles of CEO and chairman an undue concentration of power. In a recent interview with the Financial Times, Buxton criticized the changes proposed by the Financial Conduct Authority aimed at facilitating companies’ listing on the London Stock Exchange, calling them a massive lowering of governance standards.
Ed Meier takes over the Jupiter UK Alpha fund
Ed Meier, Buxton’s successor, has averaged 3.7% pa over the past 13 years, according to Trustnet. He has been the UK’s top equity fund manager over the past three years, with his Jupiter Growth and Income fund returning over 65%, according to Citywire.
Extending Buxton’s long-term investment style
In Buxton’s departure, Meier and Francis now inherit a legacy. They must strive to maintain the same caliber of performance, extend the long-term investment style, and resonate with clients and employees who have grown accustomed to expectations created under Buxton’s tutelage. However, as markets shift and investment directions change, there may be opportunities to innovate and build on that legacy, adjusting the risks and diversifying the strategy. Only time will tell if the Meier-Francis duo rises to the challenge and takes the Jupiter UK Alpha fund to great new heights.
Summary
Richard Buxton, one of the UK’s most prominent asset managers, is set to leave Jupiter Fund Management after almost 40 years with the company. He will hand over the UK equity fund he oversees to Ed Meier and Errol Francis. While UK equity funds have recently come under pressure due to the pandemic and market volatility, Buxton’s investment style, focusing on around 30 to 35 stocks held over the long term, has consistently outperformed its peers over the past ten years. Buxton has long been critical of dual-class shareholding structures, calling them harmful to investors’ voting power.
Buxton has a reputation for taking strong public positions on corporate governance, including Marks and Spencer’s decision to merge the roles of CEO and chairman. In his recent interview with the Financial Times, Buxton criticized changes proposed by the Financial Conduct Authority intended to facilitate companies’ listing on the London Stock Exchange, calling them a massive lowering of governance standards. Ed Meier, who takes over Buxton’s position, has achieved excellent results over the past three years, leading the Jupiter Growth and Income fund to return over 65%. His task will be to maintain the same caliber of performance and extend Buxton’s long-term investment style.
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Richard Buxton leaves Jupiter Fund Management after nearly four decades of a career with City institutions that made him one of the UK’s best-known asset managers.
Buxton is expected to leave Jupiter in late August, handing over the UK equity fund he oversees to Ed Meier and Errol Francis, according to people familiar with the matter.
His departure caps a career in asset management spanning nearly 40 years, during which the industry transitioned from the era of “star” asset managers to the proliferation of low-cost index trackers.
He began his career at Brown Shipley in 1985 as an investment trainee, before joining Baring Asset Management, where he became head of UK equities. In 2001 he moved to Schroders, where he managed the UK Alpha Plus fund and the group’s UK equity team.
He left after more than a decade to join Old Mutual Global Investors, where he became CEO and led a 2017 management buyout with backing from private equity firm TA Associates. The clipped business, renamed Merian Global Investors, was sold three years later to Jupiter for £370m.
Buxton’s investment style is to hold stocks for the long term — in some cases 20 years — and to focus on about 30-35 stocks. Major holdings in his Jupiter UK Alpha fund, which manages £585m, include pharmaceutical company AstraZeneca, energy production firm Drax, natural resources group Glencore and Lloyds Banking Group.
While it has consistently outperformed its peers over the past decade, UK equity funds have recently come under pressure from market volatility, the pandemic and jitters among retail investors in particular.
According to data provider Trustnet, Buxton has returned an average annual rate of 8% over the past two decades. Over the past year, it has returned 8.4% according to Citywire, compared to an average UK asset manager return of 0.9%.
Jupiter’s performance improved under chief executive Matthew Beesley, who restructured the group to cut costs after a long period of outflows.
“Richard is one of the most respected investors of his generation and it has been a pleasure to work with him since joining Jupiter,” said Beesley.
Buxton is also part of a group of fund managers who has spoken out on issues such as shareholder rights and dual-class shareholding structures that dilute investors’ voting power in favor of founders.
He recently told the Financial Times that the changes proposed by the Financial Conduct Authority aimed at facilitating companies’ listing on the London Stock Exchange were a “massive lowering of governance standards”.
In the past, he has taken public positions on corporate deals and boardroom squabbles, including financier Nat Rothschild’s attempt to replace coal miner Bumi’s board a decade ago.
He has also spoken out on corporate governance, criticizing Marks and Spencer’s decision in 2008 to merge the roles of chief executive and chairman as a creation”undue concentration of power”.
Meier, who will take over the Jupiter UK Alpha fund, has averaged 3.7% pa over the past 13 years, according to Trustnet. He has been the UK’s top equity fund manager over the past three years, with his Jupiter Growth and Income fund returning over 65%, according to Citywire.
https://www.ft.com/content/6b776477-9ae1-4bf6-8d6b-2b760e639db2
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