Australia's largest pension fund, AustralianSuper, has reduced its investment in WiseTech Global Ltd. due to governance concerns. AustralianSuper, managing over A$365 billion, has sold around A$580 million of WiseTech stock in recent weeks, having held shares in the company since it went public in 2016.

The decision to divest follows a boardroom dispute at WiseTech where founder and major shareholder Richard White took control after most directors resigned over disagreements about his involvement. White became the executive chairman after the resignations, despite an investigation revealing he had not fully disclosed personal relationships with an employee and a supplier.

AustralianSuper's Head of Australian Equities, Shaun Manuell, stated that the recent developments did not align with their expectations, leading to the decision to sell shares. The pension fund stressed the importance of good governance for creating value, emphasizing the need for a balanced transition plan regarding the founder's role at WiseTech.

AustralianSuper's stake in WiseTech peaked at 2.64% in January 2024 but decreased to 2.26% by October, and further declined to 1.9% following the directors' resignations. While AustralianSuper had been a strong supporter of WiseTech, it emphasized the necessity of good governance for long-term value creation.

WiseTech Global did not provide a specific comment on AustralianSuper's decision to reduce its stake. WiseTech shares saw a 0.3% increase in Sydney trading despite being down nearly 30% since Richard White resumed control.