Macquarie Bank to repay Shield Master Fund investors in full by Sept. 30 after ASIC findings

Macquarie Bank has pledged to repay about 3,000 Australians who invested in the Shield Master Fund through the bank’s wrap platform after the fund collapsed, wiping out substantial portions of retirement savings. The bank estimates the total net capital invested at roughly $321 million and says repayments will be made in full by September 30.

The plan follows Federal Court proceedings in which ASIC alleged Macquarie, acting as the superannuation trustee for Shield investors, breached the Corporations Act in relation to the fund. ASIC deputy chair Sarah Court said the development 'stems the significant losses that threatened thousands of members’ retirement savings after they used Macquarie’s platform to invest in Shield,' and that the agency’s investigation seeks to restore investors to their pre-Shield position. 'ASIC’s investigation will see Macquarie return these members to the position they were in before their retirement savings were eroded.'

A Macquarie spokesperson said the bank will facilitate payment of 100% of the net capital invested in Shield by wrap-platform clients, noting the move eliminates the need for a lengthy, complex liquidation process as Shield's assets are recovered by the liquidators. 'The payment will eliminate the necessity for investors to wait for a likely complex multi-year process as Shield liquidators Alvarez & Marsal continue to pursue recovery of funds,' the spokesperson said.

Under the terms, Macquarie will buy investors' Shield holdings at the value assessed during the liquidation and also make a goodwill payment. The two payments will equal 100% of the net capital each client originally invested in Shield.

While the plan seeks to resolve losses quickly, the matter remains subject to Federal Court approval of the declarations in the proceedings. Macquarie oversaw approximately $321 million in Shield investments by around 3,000 of its members between 2022 and 2023, according to ASIC. The fund’s collapse prompted scrutiny of how banks manage superannuation investments on their platforms and the responsibilities of trustees overseeing such schemes.