Aviva Investors to cut staff in retail market pullback

Aviva Investors is to pull back from the retail funds market and will slash around 160 jobs from its global workforce as part of the move.

The firm also plans to reduce most of its equities desk in London and re-focus its business to suit the current investment landscape.

Aviva Investors, which runs around £260 billion worldwide, said the cuts amount to 12% of its total workforce and form part of a move to streamline as well as refocus its business amid the tough economic environment.

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

Instead Aviva Investors will focus on its fixed income, real estate and multi-asset capabilities, with its sales and marketing forces focusing on the institutional market.

Sweeping business review

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

The board agreed the economic environment has made these changes necessary, along with the reduced appetite among investors for riskier assets such as equities.  This is trend particulary evident 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 its Multi-Asset Solutions range. 

CEO Dromer explained: ‘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.’