Under plans to streamline the business the firm said in its earlier release that it would aim to "leverage its strengths in key asset classes and prioritise its distribution effort towards the institutional market".
This change of focus will entail around 160 job cuts, mainly in the London office, over the course of 2012 – approximately 12% of the company’s global work force.
CEO Alain Dromer said after conducting a comprehensive business review he considered the strategy of the firm to be sound, but a greater focus in core areas would improve profitability.
But after a backlash from some of its clients, Aviva rushed to clarify its position.
In an email seen by Portfolio Adviser, from Simon Clark head of wealth management at Aviva Investors, he said to clients: "You will have seen some headlines today about Aviva Investors pulling back from retail fund management in the UK. This is not the case; we remain as ever, fully committed to this market.
“There has been a review of the broader business, however, details of which will be announced in due course."
Portfolio Adviser’s source, said: "Aviva Investors seems confused about what they are doing. They seem to have handled communication with companies invested in their funds badly."
In total Aviva Investors has AUM of £269bn, as at 30 June 2011, with £167.3bn in fixed income and £22.1bn in UK real estate.
The firm said yesterday it was proposing to focus on its "main strengths – fixed income, real estate and multi-asset solutions for institutional clients".
