Aviva Investors to cut 160 jobs in move away from retail market
Aviva Investors is to cut 160 jobs worldwide as the firm plans to reduce its presence in the retail funds market.
The company will cut its global workforce by about 12 per cent across the course of 2012, with the bulk of the job losses hitting London.
The cuts are being made as the firm “streamlines” its business towards core markets, as established in its recent business review.
Aviva’s London-based European, emerging markets, global and sustainable responsible investments equity desks will be shut down in the move. The asset manager will focus its sales and marketing activity on the institutional market.
The investment house will stay active in the fixed income, real estate and multi-asset spaces. In addition, it will retain its indexing and quant capability, while maintaining one active portfolio management capability in each of the main markets to keep the expertise needed for multi-asset portfolios.
Aviva Investors chief executive Alain Dromer says: “The business review concluded that our strategy is broadly right but, faced with a tougher external environment and at the same time wanting to continue to invest for the future success of the business, we propose to reduce our cost base by focusing on our main strengths.The changes we are proposing will deliver a stronger, leaner and more focused business, at the heart of which is a firm commitment to meeting our clients’ needs.”
In addition, the company says the economic downturn has led to changes in investor behaviour in the asset management sector, with risk appetites for classes such as equities - especially those in Europe - being significantly weakened.