30 January, 2012
- Focuses on Fixed Income, Real Estate and Multi-Asset Solutions
- Sales and marketing focus on institutional market
Aviva Investors, the global asset management business of
Aviva, is proposing to streamline its business, leveraging
its strengths in key asset classes and prioritising its
distribution effort towards the institutional
market. The proposed changes follow the conclusion of
a comprehensive business review led by Aviva Investors CEO
Alain Dromer and endorsed by the Aviva Group
Board. The conclusion of the review was that the
business strategy is sound but that greater focus in core
areas of strength would improve profitability and enable
Aviva Investors to continue to invest in the development of
its global infrastructure.
Aviva Investors therefore proposes to streamline its
business to concentrate manufacturing activity in Fixed
Income, Real Estate and Multi-Asset Solutions, where the
business sees growth potential and already has a strong
competitive position. In addition the economic
downturn has been the catalyst for a change in client
behaviour across the asset management sector, with a
reduced appetite for riskier assets such as equities,
notably in Europe.
As a result Aviva Investors is proposing to reduce the
scope of active equity management in London, focusing on
the core market in each of its four regions and eliminating
duplication by removing London based European, Emerging
Markets, Global and Sustainable Responsible Investments
(SRI) equity desks. Aviva Investors 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.
With a majority of its business already coming from
institutional clients, Aviva Investors is proposing to
focus sales and marketing activity on key institutional
markets. This will mean scaling back activities in the
Financial Institutions space, except where it is possible
to develop and maintain institutional-type
relationships.
In addition Aviva Investors proposes to refocus its
Environmental, Social and Governance (ESG) investment
monitoring activities, establishing a new Global
Responsible Investment Team covering all assets under
management. This team will maintain Aviva Investors'
advocacy and broader industry initiatives such as its work
promoting business ethics, the UN Global Compact and
Sustainable Stock Exchanges. As a result of reducing
the scope of active equity management it is proposed that
there will be a reduction in the stand alone resources
allocated to corporate governance. However, Aviva Investors
will continue to deliver its commitments to the UN
Principles for Responsible Investment and the UK
Stewardship Code, and will continue to ensure the
integration of material ESG issues into its mainstream
assets under management.
Across Aviva Investors' global operations it is proposed
that there will be an overall reduction of around 160 jobs
over the course of 2012, representing approximately 12% of
Aviva Investors' global workforce, with the majority of
these job reductions coming from London. Aviva
Investors will make every effort to support our people
through the consultation process and will look to manage
the necessary streamlining in our business sensitively,
working with staff representative bodies where relevant and
the wider Aviva group to minimise the impact on people
through redeployment and other measures.
The proposals are being communicated to staff and clients
today. They are subject to a period of consultation
involving Aviva Investors' staff bodies in the UK and
internationally.
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."
-ends-
For more information contact:
Angela Warburton Aviva Investors 0207 809 8618
Notes to Editors
Aviva Investors
Aviva Investors is the global asset management
business of Aviva plc. The
business delivers investment management
solutions, services and client-driven performance to
clients worldwide. Aviva Investors operates
in 16 countries in Asia Pacific, Europe, North America
and the United Kingdom with assets under management of £269
billion at 30 June 2011.
Aviva Investors is a market leader in Fixed Income, with
Assets Under Management of £167.3bn at 31/09/2011 and is
the market leader in UK Real Estate with Assets Under
Management of £22.7bn at 31/09/2011.
Aviva plc
Aviva is a leading provider of life and pension products in
Europe (including the UK) with substantial positions in
other markets around the world, making it the world's
sixth largest insurance group based on gross worldwide
premiums at 31 December 2010. Aviva's principal
business activities are long-term savings, fund management
and general insurance, with worldwide total sales* of £47.1
billion and funds under management of £402 billion at 31
December 2010.
*Based on 2010 published life and pensions PVNBP on an MCEV
basis, total investment sales and general insurance and
health net written premiums, including share of
associates' premiums.
Aviva Investors Global Services Limited, registered in
England No. 1151805. Registered Office: No. 1
Poultry, London EC2R 8EJ. Authorised and regulated in
the UK by the Financial Services Authority and a member of
the Investment Management Association.
Contact us at Aviva Investors Global Services Limited, No.
1 Poultry, London EC2R 8EJ.
Telephone calls may be recorded for training and monitoring
purposes.
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