Business · Companies · 3 hrs ago
First Guardian investors may recover little from collapsed fund
First Guardian collapsed in May 2024, leaving thousands of Australians facing losses to their retirement savings.
The collapse also involved the Shield Master Funds, and investors in the schemes lost more than $1 billion, according to one account.
Liquidators have recovered about $8 million from First Guardian investments valued at roughly $512 million.
Almost $7 million has already gone to costs, including legal fees and liquidator payments.
They cannot yet say what 6,000 investors will receive, because much of the money went into investments whose value or recoverability is uncertain.
Some funds were put into overseas property projects and speculative technology start-ups, and liquidators say some money may never be recovered.
ASIC is taking legal action against companies involved, while Diversa and Equity Trustees say they will contest the cases.
Court hearings in November and December may clarify recoveries, and some investors may seek compensation, though the available scheme is capped at $150,000.
Liquidators say they cannot yet tell 6,000 First Guardian investors how much, if anything, they will recover.
They have recovered about $8 million from investments valued at more than $512 million, while almost $7 million has gone to liquidation costs.
First Guardian and Shield Master Funds collapsed in May 2024, affecting thousands of investors.
Liquidators say about $344.5 million in investments is in an uncertain recovery category, including money channelled into overseas property and speculative technology start-ups.
ASIC is pursuing legal action against companies involved in the schemes, while some investors may seek compensation through a scheme capped at $150,000.
- Who
- First Guardian investors, including 6,000 awaiting estimates of possible recoveries.
- What
- Liquidators say they cannot yet determine how much some investors will recover after the fund collapsed.
- When
- The funds collapsed in May 2024. Liquidators gave the update in October 2026.
- Where
- Australia; some investments were channelled into overseas property developments.
- Why
- Much of the fund’s investments has not been recovered, and some may never be, according to the liquidators.
This story does not have two clearly opposing sides.
Melinda Kee moved her superannuation from a retail fund into First Guardian after receiving financial advice.
First Guardian and Shield Master Funds collapsed.
Netwealth agreed to reimburse about 1,000 First Guardian investors who used its platform.
Liquidators said they could not yet tell 6,000 investors how much they might recover.
Liquidators expected court hearings involving key players to provide a clearer picture of possible recoveries.
- Investors affected
- More than 12,000, according to the Daily Mail; ABC Australia reports 11,800.
- Investments valued
- About $512 million to $512.8 million.
- Recovered so far
- About $8 million; ABC Australia reports $8.02 million.
- Liquidation costs
- About $6.96 million, including $3.33 million in legal fees.
- Uncertain recoveries
- About $344.5 million.
- Compensation Scheme of Last Resort cap
- $150,000
2 sources
What people are saying
It is utterly devastating that after 18 months, just $8 million has been recovered from more than $512 million in investments, while almost $7 million has already been absorbed by liquidation costs.
Behind these shocking figures are real Australians whose life savings, retirement dreams and financial security have been shattered.