Shield, First Guardian & the Importance of Investment Integrity

Over the weekend, media outlets including 7 Spotlight and 60 Minutes reported on the collapse of Shield and First Guardian, which may have resulted in the loss of approximately $1.2 billion in superannuation funds for over 12,000 unsuspecting investors. This news has understandably shaken confidence across the financial advice industry.

Industry Impact and Misplaced Blame

As advisers, we are deeply disappointed—not only by the scale of the failure but also by the inevitable reputational damage that affects the broader industry, including firms like ours who have always prioritised integrity and transparency.

We’re proud to confirm that JBS Financial has no exposure to Shield or First Guardian, and we sincerely hope that those responsible for this situation are held accountable for their actions.

One of the platform administrators we work with, Netwealth, was mentioned in the coverage. It’s important to clarify that Netwealth closed First Guardian in December 2022 after investigating an unusual influx of funds. This proactive step reflects their commitment to responsible administration.

Understanding Platform Administrators

For some clients where we feel it is appropriate we recommend Netwealth a platform administrator—essentially a digital infrastructure provider. We continue to recommend them with full confidence because where appropriate we feel they provide a great value service.

They do not make investment decisions or control clients’ money. Instead, they offer access to a wide range of investments such as direct shares, ETFs, and cash, which we select in collaboration with our clients based on individual goals and risk profiles.

Netwealth’s responsibilities include lodging annual superannuation tax returns and providing administrative reports, similar to other platforms like Expand. While they may set guidelines (e.g. minimum cash holdings), they do not dictate specific investment choices—that’s our role, in partnership with you.

The Cost of Doing the Right Thing

Unfortunately, firms like JBS Financial are left to bear the burden—through negative press and levies such as the Compensation Scheme of Last Resort (CSLR) and ASIC fees. These costs are a direct consequence of failures we actively avoid.

Our Investment Philosophy: Quality Over Quantity

We’ve seen similar product failures before—like the Dixons case, where investors were placed into illiquid, high-fee funds. That’s why our investment philosophy is built on quality, transparency, and long-term growth.

We recommend:

• Blue-chip direct shares and ETFs with proven track records.
• Backing from trusted research houses like Morningstar and Lincoln Indicators.
• A focus on dividend streams and sustainable growth, not speculative short-term gains.

We have deliberately avoided Structured Products and Managed Investment Schemes (such as Shield and First Guardian), which often promise high returns but tend to unravel during economic stress (e.g. COVID-19, GFC, trade tariffs).

Transparency Matters

We don’t like surprises. That’s why we recommend investments in companies where you know exactly what you’re invested in. If the value drops, it’s for a known reason—not because a complex structure has failed. This clarity is essential to building trust and confidence in our clients’ financial future.

Protecting Retirees with the Cash Bucket Strategy

For our retiree clients, we use the “cash bucket strategy” to fund pension payments. This approach ensures that defensive assets are available when needed most—especially during market downturns—so growth assets aren’t sold at a loss. Structured products and certain fixed income funds often fail in these conditions, which is why we steer clear of them.

Tailored Advice for Every Stage of Life

At JBS, we believe in tailored portfolios that reflect our client’s financial stage and goals. We’re committed to quality, direct, easy to understand investment solutions to ensure that we are protecting our client’s future through sound, research-backed investment decisions.

You can learn more about our investment approach here.

Client Satisfaction: A Testament to Trust

At JBS, we take pride in the relationships we build with our clients. One of the most meaningful measures of this trust is our Net Promoter Score® (NPS)—a widely recognised benchmark for customer loyalty and satisfaction. It’s calculated by asking one simple question:

“On a scale from 0 to 10, how likely are you to recommend this company to a friend or colleague?”

We’re proud to share that our clients have awarded us an NPS of 93, a score that reflects their confidence in our advice, transparency, and long-term commitment to their financial wellbeing.

JBS Advisers are here for you

At JBS, our advice team is always here to support you. If you have any questions or concerns about your investments or the current market environment, please don’t hesitate to reach out. We’re committed to providing clear, personalised guidance—because your financial confidence matters to us.