Wealth management group Colonial First State (CFS) has awarded $660 million in mandates to investment managers, making allocations to the alternatives, fixed income and emerging markets sectors.

CFS awarded a $270 million mandate to Apostle Asset Management-backed manager H2O Asset Management for its global fixed income and currency strategy.

The mandate is part of CFS's $5.2 billion multi-manager fixed income portfolio.

"The H2O appointment is part of our normal portfolio management process for our fixed income portfolio," CFS head of investment services Scott Tully said.

"We had quite a bit of experience with the individuals in the firm and we thought they had something to offer to our portfolio. They are up and running and managing money, so we thought it was an appropriate appointment for our fixed income portfolio."

H2O replaced Amundi Asset Management, whose mandate has been terminated in the fund.

Former Amundi portfolio managers Bruno Crastes and Vincent Chailley set up H2O. 

CFS also awarded three alternatives mandates: $110 million to Aspect Capital, $105 million to Neuberger Berman and $85 million to First Quadrant.

These mandates concern new allocations in the FirstChoice multi-manager, multi-sector porftfolios.

"We decided that particularly post-GFC (global financial crisis) it was appropriate to reduce some of our exposures to equities by incorporating strategies that are uncorrelated with equity markets and consequently we've appointed three managers," Tully said.

CFS also made a $90 million investment in the Realindex Emerging Markets Fund.

"As part of our asset allocation changes, we made an allocation to the Realindex Emerging Markets Fund. That was again part of a strategic decision to increase our emerging markets exposure," Tully said.

Realindex Investments is a division of CFS.