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Northern Trust wins Australia mandate
27 May 2014
Asset manager appointed by Australia’s first industry superannuation fund
Northern Trust Asset Management has won a mandate to manage
the Australian Labour Union Cooperative Retirement
Fund’s (LUCRF) AUS$220m ($205m), World
ex-Australia index mandate incorporating environmental, social
and governance (ESG) criteria.
ESG screening is an core part of the fund’s
investment decision-making process, according to Roger
McIntosh, head of investments at LUCRF.
"Northern Trust's extensive experience managing ESG portfolios,
coupled with their ability to provide a customized investment
solution, were key factors in our decision," he added.
The mandate will exclude tobacco companies and cluster
munitions manufacturers, which aligns with the
fund’s values and the United Nations' Principles
for Responsible Investment. The indexing process is designed to
achieve similar benchmark risk and returns as a
full-replicating strategy but with lower transaction
"Increasingly we are seeing clients maximize the benefits of
combining indexing strategies with ESG criteria," said Bert
Rebelo, head of business and strategy for Northern Trust Asset
Management in Australia and New Zealand.