The $1 billion Tasmanian industry fund Tasplan has withdrawn a $280 million in fixed interest and cash mandates with State Street and pumped a combined $275 million into Colonial First State and Vanguard.

According to Neil Cassidy, general manager of Tasplan, State Street's $170 million fixed interest and $110 million cash mandates were terminated following a December review of the fund's cash and FI strategies.

"Mercer [Tasplan's asset consultant] decided that State Street probably wasn't true-to-label in some respects to some of their performance, on the global and domestic fixed interest especially," said Cassidy.

Specifically, Cassidy referred to State Street's Australian fixed income index fund as not "true-to-label" because the firm used credit enhancements as part of its strategy - which meant it was not a "pure" index product.

This among others, was one of the key reasons to the mandate termination.

The dropping of State Street saw Vanguard and Colonial First State pick up a $125 million and $150 million respectively from Tasplan.

"We've appointed Vanguard to manage global and domestic fixed interest to our enhanced passive portfolio.

"[We've] also appointed Colonial First State to manage a global credit portfolio of $40 million and the cash portfolio of $110 million has gone across to Colonial as well," he said.

The mandate movements follow the firm's asset consultant Mercer's advice that there were opportunities in global credit at the moment and that CFS was the "stronger manager in that area", said Cassidy.

Tasplan had also terminated a $10.8 million absolute return investment mandate with Warakiri Asset Management.