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Australian Trust Uses Northern Trust To Put Investment Philosophy Into Action

Vanessa Doctor

28 May 2014

The , 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. , 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.