EQT Holdings' ASIC Battle Forces a Strategic Retreat From Super Trusteeship

A drawn-out legal fight over its role in the Shield and First Guardian collapses pushed EQT to abandon its superannuation trustee business for good.

30 Sep 2026 · 3 min read

EQT Holdings fell nearly 20 percent in September when ASIC launched civil proceedings against its subsidiary over its role as trustee for the collapsed Shield and First Guardian Master Funds, and the stock kept falling through a prolonged legal battle EQT refused to settle, before the company responded by strategically retreating from its superannuation trustee business altogether.

A trustee due diligence failure allegation triggers a sharp fall

Ellerston Capital said the stock detracted after falling nearly 20 percent following ASIC's decision to commence civil penalty proceedings against subsidiary EQT Superannuation Limited relating to the collapse of the Shield and First Guardian Master Funds, with EQT alleged to have failed in its due diligence as trustee. Asymmetric Asset Management said the stock fell a further 19 percent in September as new information came to light regarding EQT's involvement as trustee of funds invested in both schemes, prompting the fund to further reduce its position size. Ausbil Investment Management said the stock fell 28.3 percent for the quarter, with strong full-year results overshadowed by the ASIC news, though it argued EQT's defensive and recurring revenue streams provide a solid foundation for recovery, even if progress will take time. Oracle Advisory Group said it believed the market had overreacted and presented a good buying opportunity despite the exposure, noting the company recorded good results in August, with funds under trusteeship and revenue up 28 percent and 7 percent respectively, and a dividend yield above 4 percent.

EQT's defensive and recurring revenue streams provides a solid foundation for a recovery, but progress will take time.

— Ausbil Investment Management, Quarterly Report, September 2025

A prolonged legal battle wears down patience

Oracle Advisory Group said it had been reducing its EQT holding for several months, having expected the company to settle its dispute with ASIC, but EQT continued to deny liability for investor losses, leaving what now looks like a drawn-out legal battle. Investors Mutual Limited said the stock fell 18.9 percent as ASIC's proceedings continued to weigh, arguing the issues are a clear overhang but EQT's underlying business continues to perform strongly, with the loss of market capitalisation since the initial legal action far exceeding any realistic financial impact. Asymmetric Asset Management said the stock fell 19 percent as the largest contributor to the fund's otherwise flat performance, expressing surprise at the market's reaction given EQT's exposure to First Guardian had already been well documented.

The loss of market capitalisation since ASIC's initial legal action was announced far exceeds any realistic financial impact, in our view.

— Investors Mutual Limited, Monthly Report, May 2026

A strategic retreat from superannuation trusteeship

Investors Mutual Limited said the stock fell 21.1 percent as EQT's ongoing standoff with ASIC continued to generate press coverage, though it does not believe this will materially affect the business's profitability. Asymmetric Asset Management said the stock gained 3 percent after EQT announced its intention to focus on Corporate Trustee and Wealth Services, having found its Superannuation Trustee division had become an enormous burden as ASIC's actions made it extremely unattractive for trustees to offer that service to superannuation funds, a retreat the market, including Asymmetric, found disappointing given what it implied. By July, Investors Mutual Limited described EQT's remaining business as asset management, estate planning, corporate trusteeship and wealth management services, with a question mark still hanging over the proceedings, but characterised it as a case of the market overreacting to a short-term issue, having given up something like 6 to 800 basis points of value in the process.

What fund managers say they are watching next is resolution of the ASIC civil proceedings, given EQT continues to deny liability, delivery of the strategic pivot toward Corporate Trustee and Wealth Services away from the now-unattractive Superannuation Trustee business, and whether the underlying business, funds under trusteeship and dividend yield, keeps performing as several bulls argue despite the overhang.