Thousands of First Guardian investors face little or no retirement savings recovery
More than 12,000 Australians were affected when the First Guardian and Shield Master Funds collapsed in May 2024, owing about $1.2 billion. Liquidators say thousands of First Guardian investors may recover little or nothing, leaving people who transferred retirement savings into the fund facing deep uncertainty.
Of First Guardian’s $512 million in investments, liquidators have recovered just $8 million, while winding-up costs have reached nearly $7 million. They have classified about $117.6 million as written off or settled and another $344.5 million as uncertain, including money tied to overseas property and speculative technology ventures. ASIC is pursuing legal cases against several companies; a separate Netwealth agreement provided about $100 million to around 1,000 investors, while the Compensation Scheme of Last Resort caps payments at $150,000.
In short
- Over 12,000 Australians were affected by the fund collapses.
- First Guardian liquidators have recovered just $8 million.
- Legal cases and compensation options remain under way.
Explained simply
Superannuation is the system Australians use to save for retirement, often through money paid in by employers. First Guardian was one investment fund that held people’s retirement savings; the Shield Master Fund was another fund involved in the same collapse.
Investors’ money was placed in a range of assets, including overseas property and technology ventures. When a fund collapses, liquidators try to recover its assets and distribute what is left, but the amount available can be reduced by debts and the costs of closing it down.
ASIC, Australia’s financial regulator, can take legal action over alleged misconduct, while compensation schemes may provide some help to eligible investors. These routes have different limits and do not necessarily replace the savings people put into a fund.
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Originally published by Daily Mail as “Thousands of Australians may never recover retirement savings lost in First Guardian fund collapse”.