Administrators Deloitte has shared how much Shield Master Fund investors could receive in estimated returns if the scheme is successfully wound up.
Assets in the managed investment scheme were frozen by the Federal Court in June 2024, redemptions had been suspended and the last unit price was published back in April, making the fund difficult to value.
Its responsible entity, Keystone Asset Management (KAM), was put into liquidation last week at a second creditors’ meeting after alternative proposals put forward were ruled to not be in the best interest of credit, unitholders or investors.
ASIC understands that, since February 2022, funds totalling more than $480 million have been invested into Shield by at least 5,800 consumers who accessed it primarily through superannuation platforms.
Regarding how much money could be recovered for these investors, Deloitte’s preliminary view, it said in a significant event notice, is that this could range from 22 cents per dollar for those in a high growth option to 55 cents per dollar for those in a conservative one.
“We consider that the net assets attributable to unitholders may have a value in the range of $202.6 million to $224.5 million as at the date of this report.”
So far, Deloitte said it has successfully identified and protected significant assets that are available to satisfy claims in a liquidation, as well as lodged caveats on a number of properties held by parties under investigation and where there is evidence that investor funds were used to purchase said property.
Source: Deloitte, 25 September 2024
These estimates do not account for fees and costs or account for recoveries from third parties who may have received investor funds, which Deloitte said could have a “material impact” on the funds recovered.
This includes money recovered from lead generators where some $65 million was spent by Keystone Asset Management to entice consumers to invest in the Shield fund.
Potential investors were called by lead generators and referred to personal financial advice providers, who advised investors to roll over their superannuation assets into a retail choice superannuation fund, and then to invest part or all of their superannuation into Shield.
“A liquidator may have claims against both the lead generators who received these payments, and the related parties of KAM that allowed these payments to be made out of trust assets. A liquidator has enhanced powers of investigation and prosecution beyond the powers of receivers and administrators which will assist with any actions,” the firm stated.
