HIGH-profile fund managers Chris Fontenla and David Keir as well as UK equities head Peter Cockburn are understood to be among 27 investment managers whose posts are to go after a revamp at Scottish Widows Investment Partnership (SWIP).

SWIP, owned by part-nationalised Lloyds Banking Group, said that taking account of four new positions being created, a net 23 jobs would be lost, equivalent to almost half its 51-strong equities investment team.

It comes after the house decided to use quantitative investment strategies, where computer programmes are used to determine investments, for many of the portfolios in its £54 billion equities business.

Mr Fontela, a former doctor who has been with SWIP for nine years, and Mr Keir, who worked for Edinburgh Fund Managers before he joined SWIP in 2004, ran the house's equity income fund as well as other portfolios and are among the best-known figures understood to have lost out in the changes.

A spokeswoman confirmed that Mr Cockburn's post of head of UK equities will not exist under the new structure but was unable to say whether he would be leaving the business.

One fund management industry source said: "The people who are going are probably the best people in SWIP."

SWIP confirmed that absolute return manager James Clunie, Gregor Macdonald and Andrew Paisley, who run its small cap portfolios, and Vicky Watson, who manages the SWIP European Real Estate Securities fund, will stay with the house.

Dean Buckley, managing director of SWIP, which runs £143bn of client assets, said: "We remain committed to active fund management in those markets where we have confidence that we can generate strong investment performance and build long-term, valuable relationships with clients.

"However, for some of our clients, a lower-risk approach to investment is more appropriate for their needs."

Andrew November, SWIP's director of equities, will oversee the new strategy with head of global equities Will Low taking on responsibility for its UK smaller companies, real estate securities and absolute return strategies.

Sean Phayre continues to head up the quantitative investments team, which currently has assets of £27bn.

SWIP said the process will take some months to implement and will result in the closure of a number of smaller funds.