Exclusive: A NSW chef who lost his $150,000 retirement fund in the multibillion-dollar super collapse is “hugely relieved” he will have his nest egg returned next week.

Michael “Micki” Donovan, 58, from Bermagui on the NSW South Coast was left without a cent in his super when Shield Master Fund collapsed and went into liquidation.

Donovan told 9news.com.au he will need to delay his retirement after missing out on thousands of dollars in interest as he waited for his money to be returned.

“I’ve still got a mortgage… so it was all I had to retire on in another five or six years because I’m a chef and I can’t keep working at this age,” Donovan said.

“It’s set me back three, four years at least.”

Donovan realised his $150,000 had been frozen when he went to transfer it back to his original fund to claim disability insurance after tearing his rotator cuff.

He said he called MIML on September 5 but was told he “didn’t have any super left”.

It triggered a weeks-long nightmare for Donovan.

The hard-working chef is still recovering from his injury and wondered if he’d ever be able to retire.

“I left Bermagui, I was that depressed… I came up to Mudgee to see my best friend,” Donovan said.

“I’ve got friends in Mudgee, I worked here years ago. I could get some work here, do a couple of jobs here and there until my shoulder heals.

“I just couldn’t believe it. Without my friends around me here in Mudgee, I didn’t see any future.”

He added: “It’s been a hard slog and I haven’t slept for weeks.”

Donovan joined a Facebook group of over 1500 other Australians who have been impacted by the collapse of both Shield Master Fund and First Guardian Fund.

Around 12,000 Australians have been caught up in the $1.2 billion collapse.

He said the support of friends, along with thousands of other empathetic group members in his exact position, saved his life.

Donovan is still heartbroken for the countless others who haven’t been told their money will be returned yet – if ever.

“We’re working-class Australians, there’s something wrong with the system,” he said.

“I’m not rich. It’s only $150,000 and without my interest, it would have been more.

“But there’s people who have lost hundreds of thousands more and they’re at retirement… these poor people.”

Donovan calculates he has lost between $20,000 and $30,000 in interest since Shield’s collapse.

MIML won’t pay back any potentially earned interest and has emailed Donovan to say he will be handed back 100 per cent of the net capital he invested in Shield by Tuesday.

“I had no idea it was Shield at all,” he added, explaining he didn’t realise where his money had been invested.

“It’s a huge relief. I was pretty down, man. I know it’s not huge money, but it’s all I had.”

He wants the superannuation industry to undergo urgent reform so no other Australian becomes entangled in another collapse.

According to ASIC, around 5800 people invested their superannuation retirement savings into Shield.

“In many cases, this happened after people were contacted by lead generators and referred to financial advisers,” ASIC said

“These advisers often told investors to roll over their existing superannuation balances into a choice superannuation fund available on a platform or to set up a self-managed super fund to facilitate investment into Shield.”

ASIC investigation after Shield’s collapse

ASIC said MIML, as the superannuation trustee, oversaw about $321 million in super investments into Shield by about 3000 of its members between 2022 and 2023.

ASIC began proceedings in the Federal Court against MIML, a subsidiary of Macquarie, following admissions that it did not act efficiently, honestly and fairly by failing to place Shield on a watch list for heightened monitoring. 

The corporate watchdog also accepted a court-enforceable undertaking from MIML to ensure Macquarie pays members 100 per cent of the amounts they invested in Shield, less any amounts withdrawn.

ASIC’s Sarah Court said yesterday she hoped other trustees would take similar action to Macquarie.

“I’d just encourage any of the other trustees to speak to us about how they can restore investors to where they were before they put investments in either the Shield Master Fund or the First Guardian Master Fund,” Court said.

“Superannuation trustees offering choice platforms are on notice.

“They are gatekeepers for retirement savings. ASIC expects them to take active steps to monitor the funds they make available to members through their platforms.”

In February 2024, ASIC halted new offers of investments in Shield.

“ASIC is investigating the circumstances surrounding Shield,” the financial watchdog said.

“ASIC is investigating Keystone Asset Management Ltd (in liquidation) (the responsible entity for Shield), its directors and officers, the role of the superannuation trustees, certain financial advisers who recommended investors invest in Shield, the lead generators, and the research house which rated Shield.”

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