It seems Aviva Investors, the asset management arm of the insurance giant Aviva, is likely to close its global Real Estate Investment Trust (REIT) business.

The company has sent clients a letter saying the business is under review because its scale prevents it from competing on the international level.

The letter reads: "In light of the level of competition, we consider our current global listed securities business to have insufficient scale. It is therefore unable to compete effectively in standalone pure alpha global strategies.

"Though this is subject to consultation with affected employees, it is likely that the review will culminate in Aviva Investors closing the dedicated London and New York desks. It must be stressed that this review has not been driven by investment performance, with the team building up an excellent track record over the past few years."

BS

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