Macquarie Group has announced it will facilitate the repayment of 100% of the net capital invested in the Shield Master Fund by clients who invested through its wrap platform. This move comes after the Australian Securities Investment Commission (ASIC) initiated Federal Court proceedings concerning the fund.
A subsidiary of Macquarie, Macquarie Investment Management Limited (MIML), will admit to breaching its obligation to provide financial services efficiently, honestly, and fairly. In light of Macquarie’s cooperation, its commitment to repay investors, and an agreement to improve investment governance processes on its wrap platform with oversight from the Australian Prudential Regulation Authority, ASIC will recommend that no penalty be imposed by the Court.
According to Macquarie, "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."
The company explained that this decision was made due to "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." Macquarie stated that providing immediate certainty and an improved outcome for investors benefits all parties.
To complete these payments, Macquarie will purchase affected investors’ holdings in Shield at current fair value based on estimated recoveries from ongoing liquidation efforts. Additionally, a goodwill payment will be provided so that each client receives a total amount equal to their original net capital investment in Shield. All payments are scheduled for completion by September 30, 2025.
Macquarie also advised individuals to consider their own financial objectives and seek professional advice before acting on any information provided.