Aviva Investors is to stop investing in third-party hedge funds, following a review of its business.
The asset management arm of insurer Aviva confirmed that it had invested "some" of the assets of its global affiliates in third-party hedge funds.
"Following a comprehensive review of our business, we have decided to exit the business of investing in third party hedge funds and we are working with our affiliates and the underlying hedge fund managers on an orderly transition plan," the company said.
The Wall Street Journal, which first reported the story, said Aviva managed around $2bn in a US-based fund-of-hedge-funds and was forced into the move after a major client asked for its money back. The underlying managers included Corvex Management, Pershing Square Capital Management and Discovery Capital Management, according to the WSJ. Less than a dozen Aviva staff in New York are expected to lose their jobs, the newspaper added.
The decision is not thought to be linked to Aviva's £5.6bn ($8.8bn) bid for Friends Life, announced on 21 November.
Insurance Asset Risk was unable to confirm those details with Aviva at the time this article was published.