First Guardian Master Fund – Diversified and Growth Strategies

Background

Falcon Capital Limited (‘Falcon’) is the responsible entity for the First Guardian Master Fund (‘First Guardian’), a registered managed investment scheme (ARSN 635 429 113). Falcon suspended the processing of applications and withdrawals from First Guardian on 27 May 2024 subject to some limited exceptions.

[Updated 16 July 2025] The Liquidators have now released their statutory report into First Guardian. The report states that the Liquidators are not in a position to provide a revised estimated value of the units in the First Guardian Master Fund. However, they consider that the value would be significantly less than the last value that had been determined by Falcon prior to the appointment of the Liquidators.

The Liquidators believe that it is very likely that some of First Guardian’s assets and investments are not recoverable or will not recover at the full value. Further, they consider that the value of the assets may have been overstated in Falcon’s accounts. Significant shortfalls are expected.

The Liquidators consider that the liquidation will continue for and take some time to complete, and certainly beyond twelve months. The Liquidators’ updates on the progress of the liquidation and a copy of the statutory report can be found here.

[Updated 11 April 2025] The Federal Court has appointed Ross Blakeley and Paul Harlond of FTI Consulting as liquidators (‘Liquidators’) of Falcon and ordered the Liquidators to wind up Falcon, First Guardian and related unregistered subsidiary funds. The Federal Court also ordered that Mr Paul Allen of PKF Melbourne be appointed as receiver to the property of David Anderson, a director of Falcon. A link to the full media release can be found here. Investors and creditors can contact the liquidators with any queries by emailing falcon.investors@fticonsulting.com. 

On 17 March 2025, ASIC announced that it has filed a request with the Federal Court to appoint liquidators for Falcon, and to wind up First Guardian. ASIC is concerned about the management and operation of First Guardian and the associated risk to investors. ASIC has alleged that there have been significant delays in cash receivables, questionable payments for marketing services, and potential conflicts of interest involving a director. A link to the full media release can be found here.

On 11 March 2025, Falcon published an update to investors regarding the freezing orders obtained by ASIC and its plans to wind down First Guardian orderly. A link to this update can be found here.

On 24 February 2025, the Federal Court made interim orders freezing the assets of Falcon, First Guardian, and Mr. David Anderson a director of Falcon. A link to the full media release can be found here. The Federal Court extended these orders on 27 February 2025, 12 March 2025, and 17 March 2025.

On 18 February 2025, the Federal Court issued interim orders freezing assets related to financial adviser Ferras Merhi and Osama Saad, former director of Aus Super Compare Pty Ltd (in liquidation) and Atlas Marketing Pty Ltd (in liquidation). The interim freezing orders are in relation to investigations involving First Guardian. Links to ASIC  media releases  relating to the freezing orders can be found here and here.

Advisers and investors can access updates directly from the Liquidators at fticonsulting.com/creditors/falcon-capital-limited.  

Further information on the ASIC investigation and actions taken can be found here.

Impact to your Netwealth account

Suspension of Netwealth administration fees relating to the First Guardian Master Fund

Effective 1 January 2025, because of uncertainties in the value of the First Guardian Master Fund's assets, Netwealth has temporarily suspended the charging of Administration fees on the portion of platform account balances invested in the First Guardian Master Fund.

As a result, you may notice a reduction in Administration fees charged to your account whilst the ASIC proceeding is ongoing. This suspension in fees will remain in place for the duration of the proceeding, or until we otherwise decide to remove the suspension. In some cases, fees have been charged, but a rebate is being paid in relation to the portion of the Administration fees relating to your investment in the First Guardian Fund.

[Updated 14 July 2025] Valuation of your interest in First Guardian

Please refer to recent correspondence from Netwealth regarding the valuation of the First Guardian Master Fund.

Key communication dates

        

  

Frequently Asked Questions

  

The First Guardian Master Fund is an investment option that includes both ‘Diversified Strategies Class’ (FCL1554AU) and ‘Growth Strategies Class’ (FCL0691AU) which were added to the Super Accelerator and Wealth Accelerator private investments menus in February 2021. Falcon Capital Limited (ABN 78 119 204 554) is the responsible entity of the First Guardian Master Fund.

In December 2022, the First Guardian Master Fund was closed to new applications and additional investment on the Super Accelerator investment menu.

In January 2023, the First Guardian Master Fund was closed to new applications and additional investment on the Wealth Accelerator investment menu.

Due to uncertainties in the value of the assets within the First Guardian Master Fund, effective 1 January 2025, Netwealth has decided to temporarily suspend the collection of administration fees from platform accounts as they relate to the First Guardian Master Fund.

The suspension will remain in place while the ASIC proceeding is ongoing.

You may notice a reduction in the administration fees charged to your account during the investigation period. This suspension aims to reflect the current uncertainties regarding asset valuations in the First Guardian Master Fund.

No action is required from you. However, you may wish to contact your financial adviser to discuss how this change impacts your personal situation and needs.

Yes, you can cease paying advice fees at any time by contacting us. However, this may impact your ability to continue to receive advice in relation to your account from your adviser.

The Liquidators have published a website where they are providing updates in respect of Falcon and First Guardian, which is available here. A copy of the statutory report lodged by the Liquidators can also be found on this website.

The Liquidators are not in a position to provide a revised estimated value of the units in the First Guardian Master Fund. However, the Liquidators consider that the value would be significantly less than the last value that had been determined by Falcon prior to the appointment of the Liquidators.

As to the timing of any distribution from the First Guardian Master Fund, the liquidators report notes that any potential interim distribution is likely to take at least eighteen months, with any final outcome and distribution potentially taking a number of years.

Netwealth holds an interest in First Guardian on your behalf through the Netwealth investment platform. In this case, the platform is the formal registered unitholder, not you directly. This means that Netwealth will participate in the liquidation process in relation to First Guardian (including lodgement of claim forms and otherwise participating in and monitoring the liquidation process). Netwealth will provide updates to you when they are available.

The Liquidators consider that the liquidation will continue for and take some time to complete, and certainly beyond twelve months. During this time, we are unable to process withdrawal, redemption or rollover requests in relation to First Guardian assets. If a distribution is provided by the Liquidator, we will credit that amount to your account and the value will be available for withdrawal, redemption or rollover. However, please be aware that the Liquidator has indicated a preliminary redemption will not be available for at least 18 months, with final distributions not occurring for several years.

You do not need to take any action. Netwealth holds an interest in First Guardian on your behalf through the Netwealth investment platform. In this case, the platform is the formal registered unitholder, not you directly. This means that Netwealth will participate in the liquidation process in relation to First Guardian (including lodgement of claim forms and otherwise participating in and monitoring the liquidation process). Netwealth will provide updates to you when they are available.

If you need further support, we have arranged an independent counselling service for our clients invested in First Guardian free of charge. You can contact us on 1800 888 223 to arrange this.

You can also speak to an independent financial counsellor for free by contacting the National Debt Helpline (NDH) on 1800 007 007 (9:30am to 4.30pm in your local Australian time zone, Monday to Friday).

You can also find a financial counselling agency using the map on ASIC’s Moneysmart website.