Institutional investment manager IFM Investors has been instrumental in the collapse of contractor Tandem Corp, leaving thousands without work.
According to the Australian Financial Review, contractor Tandem Corp was half-owned by IFM and collapsed owing an estimated $3 million in wages to employees and 86 staff were sacked while hundreds more faced uncertainty about their jobs.
Directors representing IFM, which was the investment arm of 26 industry super funds and $148 billion, had put Tandem into administration after a major class action by a subsidiary prevented Tandem from winning work.
A move into administration also meant it was unlikely the class action would reach court.
On its website, Tandem Corp said it managed over 2,900 subcontracting companies who employed more than 5,200 workers.
IFM directors, Stuart Wardman-Browne and David Odgers, were the only two people remaining on the Tandem Corp after the remaining directors quit.
IFM directors, which was chaired by former Australian Council of Trade Unions (ACTU) secretary, Greg Combet, were the only two left on the Tandem board after the remaining directors quit.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
Add new comment