Aviva Closing Only US Office In Chicago

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Aviva Investors announced plans to shutter its Chicago office by the end of the year, while expanding its high-yield, credit-research, and trading teams in London and Toronto. This decision will affect 25 jobs in Chicago but underscores the company's commitment to strengthening its operations in other key financial hubs.

Aviva Investors is still dedicated to the North American market in spite of the shutdown. The company is looking into possible distribution partnerships in the United States and will keep up its distribution efforts in Canada. "We have decided to refocus," an email from an Aviva representative stated. "This change is designed to strengthen our competitive position and enhance our ability to serve our clients effectively."

The closure of Aviva's Chicago office is part of a broader trend affecting the city, which has long been a hub for derivatives firms like DRW Holdings LLC and IMC. Chicago, the third-largest city in the U.S., has faced significant challenges in recovering from the pandemic, leading to increased vacancy rates and diminished property values.

The central business district's vacancy rates have been setting records, reaching 23.1% in the three months through June, according to data from real estate firm Jones Lang LaSalle Inc. Additionally, Cboe Global Markets Inc., an options powerhouse, recently sold its former headquarters in Chicago's financial center for about half its pre-pandemic value.

In order to better align its global strategy, Aviva Investors has also started cutting back on activities in other regions. The company decided to extend its distribution collaboration with Capital Strategies Partners throughout southern Europe instead of continuing with its Milan location, and announced its closure in May. Furthermore, Aviva Investors is consolidating its Asia-Pacific distribution within its Singapore office and discontinuing its domestic Australian retail fund distribution business.