Mumbai: A global custodian with staff working overseas, including in India, will manage Australian government''s $51 billion Future Fund.

The Chicago-based Northern Trust will use its regional headquarters in Singapore and staff in Bangalore to manage the fund, a report in the Herald Sun said.

The Future Fund would build investments to cover public service superannuation liabilities, which is expected to reach about $140 billion by 2020.

Northern Trust will earn about $30 million a year to in fees and related income for managing the funds or acting as "global custodian", the report said.

The fund manager will sent about 60 jobs out of every 100 in Australia to Singapore and elsewhere. Northern Trust has two people working with the fund in Melbourne and this may be increased to ten.

The fund is run by an independent board, which is appointed by the Australian government.

Banking sources yesterday said the industry generally was surprised by the company selected for Australia''s biggest ever banking management contract.

Northern Trust was the only bidder for the global custodian contract that did not have an Australian base.

They said the selection raised issues of how Australian law could be applied to an offshore entity.