Aviva Investors to close four equity desks; cut 12% of workforce

Aviva Investors' London-based equity fund managers are at risk after the group said it is planning to cut 12% of its workforce globally in its latest shake-up.

The group said following a strategic review, it plans to close its London-based European, emerging markets, global, and sustainable and responsible investments (SRI) equity desks.

The move comes as part of a wider cost-cutting strategy which will see 160 job losses globally.

The business will continue to focus on fixed income, real estate and multi-asset funds, where it said it sees growth potential.

It blamed the move on the economic downturn, which it said had led to a "reduced appetite for riskier assets such as equities, notably in Europe."

It is not yet known which fund managers, if any, will leave the group as a result of the review.

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.

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