The Labour Union Co-operative Retirement Fund selects Northern Trust to manage its World ex-Australia index mandate.

The Labour Union Co-operative Retirement Fund, the Australian-owned trust that derives most of income from superannuation investments, has selected Northern Trust Asset Management's international business to manage a new mandate that adheres to environmental, social and governance criteria.

The World ex-Australia index mandate, valued at A$220 million ($205 million) incorporates ESG screens to Northern Trust's portfolio construction process. In a statement, LUCRF said the ESG screening is a core component of its investment decision-making process.

The mandate is designed to exclude tobacco companies and cluster munitions manufacturers, which aligns with the group's values and the United Nations' Principles for Responsible Investment. Northern Trust Global Investments, the US firm's international asset management arm that offers equity and fixed income strategies, also specialises in index management.

LUCRF currently has over 180,000 members in Australia and records some A$4 billion in funds under management.