Ms Davison replaces Ian Robertson, who has resigned after 16 years in the position.
Mr Robertson played an integral role in developing the fund’s sustainable and responsible investment strategy, according to a statement by Local Government Super.
Ms Davison is currently chief executive of the Fund Executives Association Ltd and has held a number of senior leadership and strategic positions in financial services focused on the management of environmental, social and governance (ESG) risks.
Prior to this, Ms Davison was regional managing director for Australia and New Zealand at CFS Global Asset Management, where she played a key role in helping to position the company as a leading ESG manager.
She was also a member of CFS Global Asset Management’s executive committee and operating group, responsible for the strategy and development of the business.
Commenting on the appointment, Local Government Super chair Bruce Miller said Ms Davison's “demonstrated understanding, not only of the importance of sustainability in investing but of how to successfully address ESG issues in everyday investment planning and practice, makes her an excellent choice for the board”.
