Austock Asset Management (Austock AM) has revamped its Australian equity business, resulting in the departure of three key staff.

Austock AM investment manager Stuart Larke, equity analyst Wesley Nation and investment manager Adam Scully have all accepted redundancies from the organisation.

Austock AM managing director Alan Sheen will be responsible for Australian equities, and will be supported by Matt Condon as quantitative analyst and dealer.

"The Australian equity process will be enhanced to include a robust quantitative screen that will provide a primary filter when screening stocks in the S&P/ASX 300 universe," a company statement said.

"As with most enhancements incorporating rigorous quantitative screens, the process will require significantly less people in the equity team."

The firm's Australian equity business manages $60 million in funds under management (FUM). The Australian fixed income group manages $250 million.

Austock AM's fixed income team includes head of fixed income and fund manager Doyle Mallett and senior investment analyst, fixed income Brad Bugg.

"This new business structure will see the two asset classes become more equally weighted on a revenue per resource allocation basis," the statement said.

On Monday, Austock AM's head of Australian equities Silvio Gasparet left the firm to take up a job with the Victorian Funds Management Corporation.

Standard & Poor's has placed Austock's Australian equities portfolio on hold following Gasparet's departure.

Yesterday Morningstar announced it would withdraw its recommendations from Austock's Australian equities funds.

"The process is now appreciably weaker, and after such substantial change there is no longer an investment case for remaining. We therefore recommend investors in Austock's Australian equities funds reconsider their options," Morningstar senior research analyst Chris Douglas said.