Aviva Investors is restructuring its global Reits securities business in a move which is expected to see the asset manager close desks in both London and New York.
Aviva says its current global listed securities business has “insufficient scale” and cannot compete in the “pure alpha global strategies” space.
The firm says it intends to keep the dedicated Asia-Pacific capability as part of the Asia-Pacific real estate business as the firm feels it offers subsequent growth potential.
In a letter to clients, Aviva investment sales manager John Palmer says: “Though this is subject to consultation with affected employees, it is likely that the review will culminate in Aviva Investors closing the dedicated London and New York desks. It must be stressed that this review has not been driven by investment performance, with the team building up an excellent track record over the past few years.”
The proposals could result in the closure of the Global Reit fund managed by Paul Van De Vaart.
Aviva Investors announced plans to cut 160 jobs in January 2012 with its London-based European, emerging markets, global and SRI desks being affected. Last month, Alliance Trust entered into an investment advisory agreement for Aviva Investors £1.2bn sustainable and responsible investment range.