Aviva Investors to cut 160 jobs and pull back from retail funds market

Aviva Investors is set to pull back from the retail funds market and cut around 160 jobs from its global workforce, while reducing most of its equities desk in London.

The firm, which runs around £260 billion globally, said the cuts amount to 12% of its global workforce and are part of a move to streamline as well as refocus its business amid a tough economic environment.

The firm will reduce its active equity management in London by removing its London-based European, emerging markets, global and sustainable responsible investments equity desks.

The move will see the firm focus on its fixed income, real estate and multi-asset capabilities, with its sales and marketing forces focusing on the institutional market.

The changes follow the conclusion of a comprehensive business review, led by Aviva Investors CEO Alain Dromer, and endorsed by the Aviva Group Board, as previously reported by Wealth Manager.

The board agreed the economic environment necessitates these changes, as does the reduced appetite for riskier assets such as equities, especially in Europe.

Meanwhile the firm plans to retain its strong indexing and quant capability, and to have one active portfolio management capability in each of the main markets, retaining all the expertise required for Multi-Asset Solutions. 

Alain Dromer, chief executive of Aviva Investors, said: ‘Over the three and a half years since Aviva Investors was created we have taken great steps forward and we are continuing to make strong progress to increase net external sales. 

‘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 – fixed Income, real estate and multi-asset solutions for institutional clients.’

He added: ‘We continue to enjoy a close and mutually reinforcing relationship with our Aviva parent, which is supportive of the proposals we are announcing today.