Aviva Investors has announced that it is to axe 160 jobs in a move to streamline its active equity management business in London and focus on the institutional market.

The asset management arm of insurer Aviva has confirmed that the majority of the job cuts, which represent 12 per cent of Aviva Investors’ global workforce, will come from London over the course of 2012.

The changes proposed by CEO Alain Dromer following a strategic review include focusing on the areas of fixed income, real estate and multi asset solutions, where he sees growth potential and where the business is already competitively positioned.

The review concluded that the economic downturn had reduced investors’ appetite for riskier assets such as equities, most notably in Europe.

With the majority of its business coming from institutional clients, Aviva Investors will focus sales and marketing activity on institutional markets, scaling back activities in the financial institutions space, the company said in a statement.

Dromer commented that the business continued to make ‘strong progress’ to increase net external sales and that the review of the business had concluded that its strategy is ‘broadly right’.

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

‘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,’ he added.

Shares in Aviva closed down around 3 per cent yesterday but have made a slight recovery this morning, up 2.25 per cent to 350.40p at 9.53am.