Macquarie Investment Management is facing a new class action in the Supreme Court of Victoria over its involvement in the collapse of the Shield Master Fund, a year after compensating investors $321 million. The proceedings, initiated by Gordon Legal on behalf of representative plaintiff Rachelle Dessent and approximately 2,800 investors, allege that Macquarie has failed to fully compensate investors for losses sustained beyond the return of their initial capital.
The Shield Master Fund, which was available on platforms operated by Macquarie and Equity Trustees from early 2022, went into liquidation in late 2024. This followed intervention by the corporate regulator, which halted further investments amid concerns that the fund had directed investor money into high-risk property developments and other ventures. Around 6,000 investors collectively committed about $480 million to the fund, many relying on advice from registered financial advisers, while some were reportedly unaware that their funds had been allocated to Shield.
Although Macquarie has repaid investors the amounts they initially invested through its platform, the class action claims the company did not cover potential lost earnings or returns following Shield’s collapse. The complaint further asserts that Macquarie failed to conduct appropriate due diligence and oversight before allowing the fund’s inclusion on its superannuation platform. The company previously admitted to breaching the Corporations Act by not placing Shield on a watch list to trigger heightened monitoring, as part of a settlement with the corporate regulator.
In contrast, Equity Trustees is currently contesting allegations in court, asserting it did not engage in wrongdoing related to Shield. The class action against Macquarie is the second linked to Shield’s failure; an earlier lawsuit filed in the Federal Court in June was discontinued after its financial backers withdrew support.
Ms. Dessent, the lead plaintiff, said she was shocked by the significant decrease in her superannuation balance, expressing disappointment given her trust in the Macquarie brand. Gordon Legal partner James Naughton emphasized the importance of superannuation for most Australians and urged Macquarie to compensate investors fully for their losses.
Meanwhile, Shield’s liquidators, Jason Tracy and Glen Kanevsky of Alvarez & Marsal, are seeking Federal Court approval for an interim distribution of $100 million to investors, with most of that amount—approximately $70 million—allocated to Macquarie. This sum represents the holdings of 3,000 investors that Macquarie took ownership of after repaying their capital. Liquidators have also recovered an additional $90 million through equity sales but have reserved those funds to cover legal fees, liquidation costs, and other contingencies.
Macquarie has been contacted for comment.