The investment strategy of the Victorian Fund Management Corporation and the funding strategy of Members Equity Bank attracted the attention of Victoria's Liberal Party opposition in the state parliament yesterday.The Age reported that the Opposition treasury spokesman, Kim Wells, questioned a $500 million investment by VFMC in a pool of mortgage-backed securities of the bank. The newspaper did not make clear, and presumably Wells did not make clear, the timing and terms of the investment, but it was presumably undertaken this year.Wells did offer some context to his question, asserting that Members Equity Bank was a "faltering trade union bank", a conclusion that, based on The Age's report (and including a later email to The Age) Wells did not elaborate on. Wells did, in the email to the newspaper, assert that the VFMC investment in a bank that, at the time, was subject to a review of its crediting rating, with a view to a possible downgrade, was "highly unorthodox".The Herald Sun reported that the VFMC investment is is a mortgage bond with a term of one year. (The Herald Sun article is not published online this morning).Standard & Poor's placed the credit rating of Members Equity Bank and many other smaller deposit-taking institutions on credit watch in April (S&P also cut the credit ratings of some at the time). S&P two weeks ago confirmed the long-term credit rating of Members Equity Bank at BBB and also confirmed the short-term credit rating at A-2, and removed them from credit watch.