Colonial First State Global Asset Management has been chosen by UniSuper to manage its $1.3 billion domestic fixed interest portfolio.

The mandate is made up of government and semi-government bonds and was secured by competitive tender.

Colonial First State Global Asset Management (CFSGAM) already manages cash, mortgage- backed securities and unlisted infrastructure for the fund.

"This appointment recognises our existing track record managing assets for UniSuper and underscores our strong capability in delivering tailored investment management solutions to our clients," said CFSGAM co-head of global fixed interest and credit, Warren Bird.

"More than ever, institutional investors are seeking solutions which balance outcomes with appropriate research, risk and portfolio management processes to deliver a full suite of investment services."

CFSGAM, which is the asset management division of Commonwealth Bank, manages around $25 billion in fixed interest and credit, mainly for institutional clients.

UniSuper is the fund for the university and research sector and managed more than $29.8 billion in assets as of June 30, 2011.

It has over 450,000 members.