Australian retirees face multimillion-dollar losses as First Guardian Master Fund collapses

Thousands of Australian retirement savers are facing substantial losses after the collapse of the First Guardian Master Fund, which was placed into liquidation in March after the Australian Securities and Investments Commission obtained a Federal Court order to freeze the fund’s assets. Early estimates from the fund’s creditors put the amount owed to unitholders at about $590 million, covering roughly 6,000 investors who entrusted their nest eggs to the vehicle.

The liquidators, FTI Consulting, said the claims on a cash-invested basis could total around $446 million, indicating a significant portion of investor money was tied up in ventures that have yet to generate income. Investigators also said a substantial amount—about $242 million—was sent overseas before the fund’s troubles became public, with funds moving through foreign jurisdictions in the run-up to the liquidation. The report indicates that the assets were spread across technology-related investments, many of which have not been commercialised and therefore are not producing returns for unitholders.

The case centers on the fund’s principals, including David Anderson, 46, a director of the fund and its parent company, Falcon Capital Limited. ASIC has accused Anderson of siphoning about $5.6 million into a personal ANZ bank account “without any legitimate basis for payments in that amount being apparent to ASIC or disclosed to investors,” and has alleged that he moved about $274 million overseas after learning of the regulator’s investigation. Anderson has been photographed in a casual setting in August, described by local observers as strolling along a back road in Ventnor on Phillip Island, a quiet coastal portion of Victoria.

In addition to the personal-accounts allegations, liquidators say assets linked to the fund included a $9 million Melbourne mansion on the Yarra River, purchased in 2020 and frozen as part of the court-ordered seizure. The fund’s other director, Simon Selimaj, 63, is tied to a Lamborghini Urus registered in the company’s name. The luxury vehicle, initially valued at about $548,000 including on-road costs, has since been seized by the liquidators and is estimated to be worth around $350,000 to $400,000.

The liquidators have said the fund cannot repay all investors and have drawn attention to the heavy exposure to overseas ventures and technology start-ups that have not produced income. The report notes that a substantial amount of investor money was diverted or invested offshore, and much of the remaining capital has yet to be redeemed. The collapse has affected thousands of ordinary Australians, including a Canberra couple who lost about $340,000 after following the financial-planning advice that led to investments with the fund.

FTI Consulting, the appointed administrators, emphasized that the figures are preliminary and subject to review as the liquidation process unfolds. They cautioned that while some assets can be recovered, a large portion of the capital is unlikely to be fully recovered, given the nature of the investments and the offshore transfers. Investors have awaited further updates as the court-ordered freezes remain in place and the administrators continue to trace and, where possible, recover assets.

The First Guardian Master Fund’s demise underscores the risks associated with retirement savings tied to opaque, high-risk ventures and to structures that allow funds to move quickly across borders. Regulators have signaled that ongoing oversight and enforcement actions will continue as they work to determine the full scope of losses and identify any additional red flags in the fund’s operations. For now, thousands of Australians await news on how much of their retirement nest eggs can be recovered and how long the process will take.