U.S.-based Invesco (IVZ) is scaling back its Canadian operations as volatility in financial markets persists.
The Atlanta-based investment management firm said it is cutting 40 jobs in Canada, including in sales to institutional clients.
The global investment management industry has come under pressure as investors increasingly migrate from actively managed accounts to lower-cost alternatives such as exchange traded funds (ETFs) and self-managed accounts.
Investors also moved money to the sidelines as stock markets around the world plunged last year and remain volatile so far in 2023.
That volatility increased in this year’s first quarter as several banks in the U.S. and Europe failed, sparking fear of contagion in stock markets, including the Toronto Stock Exchange (TSX).
Invesco’s total assets under management declined 1.7% to $1.46 trillion U.S. in February of this year amid unfavorable market conditions, the company said in a recent statement.
Invesco’s own stock has declined 10% so far in 2023, and is down 29% over the last 12 months, at $16.40 U.S. per share.