Shield Master Fund

Macquarie Group (Macquarie) notes today’s announcement by the Australian Securities Investment Commission (ASIC) regarding the Shield Master Fund (Shield). 

Macquarie has undertaken to facilitate the payment of 100% of the net capital invested in Shield by those who invested through the Macquarie wrap platform. 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. 

In a Federal Court proceeding commenced by ASIC, a Macquarie subsidiary, Macquarie Investment Management Limited (MIML) will admit to a contravention of its obligation to provide financial services efficiently, honestly and fairly. Given Macquarie’s decision to cooperate, the payment to investors, and Macquarie’s undertaking to make further improvements to the investment governance processes on its wrap platform in accordance with a formal plan agreed with the Australian Prudential Regulation Authority, ASIC will submit to the Court that no penalty should be imposed. 

Macquarie’s decision to devote resources to achieve this outcome recognises Shield’s unique circumstances, notably the scale of the issue, its material impact on many investors and their limited access to recourse from the many different entities which played a role. The approach of providing immediate certainty and an improved outcome for investors benefits all parties. 

To enact the payments, Macquarie will purchase the investors’ holdings in Shield at the current fair value, which is based on the estimated ultimate recovery from the liquidation process. In addition, Macquarie will make a goodwill payment to investors, with the two payments equating to 100% of the net capital each client originally invested in Shield. 

The payments will be made in full by 30 September, 2025.