Keystone Asset Management Ltd.

Background – Receivership Appointment

On 2 April 2025, Jason Tracy and Glen Kanevsky joined Alvarez & Marsal. As a result, all contact related to this matter from 2 April 2025 should be re-directed to Alvarez and Marsal with contact details included below:

* Responsible Entity for the Shield Master Fund (ARSN 650 112 057)
* Trustee for the Advantage Diversified Property Fund; and
* Trustee for the Quantum PE Fund (together, the Funds).

On 31 March 2025, orders were made by the Federal Court of Australia to remove Lucica Palaghia as a joint and several receiver and manager with Ms Palaghia to be replaced by Glen Kanevsky. As such, Jason Tracy and Glen Kanevsky are the currently appointed joint and several receivers and managers (Receivers) of KAM and the Property of the Funds.

Please note that whilst there has been changes in the appointed Receivers since the original receivership appointment on 28 August 2024, these changes will not impact the ongoing role and actions of the Receivers.

Background – Voluntary Administration and Liquidation Appointment

On 28 August 2024, Scott Langdon, John Mouawad and Michael Korda of KordaMentha (Prior Administrators) were appointed as voluntary administrators of the Company.

On 5 September 2024, an order was made by the Federal Court of Australia to remove the Prior Administrators and have Jason Tracy and Lucica Palaghia appointed as the replacement joint and several administrators (Administrators) of the Company.

At the second meeting of creditors for KAM which was held on 2 December 2024, the creditors of the Company resolved to wind up KAM and appoint Jason Tracy and Glen Kanevsky as Joint and Several Liquidators (Liquidators) of KAM.

Change of Address and Future Investor and Creditor Correspondence

On 2 April 2025, Jason Tracy and Glen Kanevsky joined Alvarez & Marsal. As a result, all contact related to this matter from 2 April 2025 should be re-directed to Alvarez and Marsal with contact details included below:

Contact Details	Previous Contact Details	New Contact Details
Postal address	Keystone Asset Management Limited c/- Deloitte Quay Quarter Tower Level 46, 50 Bridge Street SYDNEY NSW 2000	Keystone Asset Management Limited c/ - Alvarez & Marsal Australia Level 25, 20 Bond Street SYDNEY NSW 2000
Email address	shieldinvestors@deloitte .com.au	shieldinvestors@alvarezandmarsal.com

Meeting of Creditors for the Voluntary Administration and Liquidation of KAM

The following meetings have been held with respect to the voluntary administration of KAM:

Meeting Date	Overview of Meeting
9 September 2024	* Committee of Inspection (COI) was formed for the voluntary administration of KAM.
2 December 2024	* Creditors did not resolve to enter into any of the three (3) Deed of Company Arrangement proposals which had been put forward for the future of the Company. * Creditors resolved to wind up the Company and appoint Jason Tracy and Glen Kanevsky as Liquidators. * A COI was formed for the liquidation of KAM, and * A number of resolutions were passed with respect to the remuneration and expenses of the Prior Administrators, the Administrators, and the Liquidators.

Status of Receivership

Role of the Receivers

The Receivers were appointed by the Federal Court of Australia to attend to the following:

* "identifying, collecting and securing the Property of the First Defendant held in any of its Relevant Capacities;
* ascertaining the amount of the Investor Funds received by the First Defendant;
* identifying any dealings with, payments of, distributions of or uses made of the Investor Funds by the First Defendant;
* identifying any Property purchased or acquired, directly or indirectly, with Investor Funds; and
* recovering Investor Funds”

Actions of the Receivers to Date

The Receivers work to date has included:

* Entering into possession and taking control of the Property of the Funds
* Taking enforcement action and other actions to ensure protect the Property of the Fund
* Carrying on the business of KAM in its capacity as responsible entity and trustee of the Funds
* Undertaking investigations with respect to the sources and uses of investor funds
* Pursuing recovery of investor funds, and
* Preparing a confidential report to the Court in relation to the Property of KAM, investor funds, providing an opinion as to the solvency of KAM, and various other items.

Further Actions of the Receivers

The Receivers are continuing to attend to the following work:

* Seeking amendments to orders which will allow the Receivers to realise Property of the Funds for the benefit of investors
* Taking enforcement action and other actions to ensure protect the Property of the Fund
* Arranging for termination of the Funds
* Undertaking investigations with respect to the sources and uses of investor funds
* Pursuing recovery of investor funds, and
* Attending to ongoing correspondence with investors with respect to pertinent matters as required.
* The Receivers will provide further updates with respect to the status and tasks undertaken in this matter in due course.

Status of Liquidation

Role of the Liquidators

As detailed on the ASIC website, the Liquidators role includes attending to the following:

* Protecting, collecting and selling the Company’s assets
* Conduct investigations and reporting to creditors about the Company’s affairs, including claims that may be pursued for the benefit of creditors
* Undertaking inquiries with respect to the failure of the Company and offences that may have been committed by the Company’s officers, and
* If applicable, distributing money from the collection and sale of assets subsequent to payment of the costs of the liquidation.

Actions of the Liquidators to Date

The Liquidators work to date has included:

* Preparing and issuing a statutory report to creditors
* Preparing and lodging a confidential investigation report with ASIC, and
* Attending to various statutory obligations.

Further Actions of the Liquidators

The Liquidators are continuing to attend to the following work:

* Undertaking investigations with respect to the recoverability of the Company’s assets
* Undertaking investigations with respect to potential claims that may be pursued, and
* Attending to various statutory obligations.

The Liquidators will provide further updates with respect to the status and tasks undertaken in this matter in due course.

Investors and Creditors

Status of Creditors and Investors
The Receivers and Liquidators have received several queries from investors and creditors in relation to the appointments of receivers, administrators and subsequently Liquidators. The appointments as receivers and liquidators have distinguished roles and responsibilities as described above.

We advise that investors in the Funds are not classified as creditors in the liquidation of the Company unless they have some other claim against the Company. Investors may wish to seek independent legal advice as to whether they may have some other claim against the Company. Unless an investor wishes to make a claim as a creditor, investors are not required to complete a proof of debt form or attend creditors meetings. We note that this relates only to the liquidation of Keystone in its own right, and this does not mean that investors are excluded from the insolvency process. Please see above for details of our duties to investors as receivers of the Funds, particularly with respect to recovering investor funds.

Future of the Funds
Given KAM has now been placed into liquidation, and no viable alternative was identified for the ongoing operation of the Funds, the Receivers are considering termination of the Funds and will provide further information to SMF investors in relation to this shortly.

We confirm that in our capacity as receivers of the Funds and liquidators of KAM, our focus is on recovering assets for the benefit of creditors and investors.

We confirm that redemptions in the Shield Master Fund remain stopped pending the Court’s determination of the Proceeding which is ongoing. As our investigations and the Proceedings are ongoing, we are unable to confirm the timing and quantum of funds available to investors.

We expect to provide a further update to investors shortly.

Further information from ASIC with respect to Keystone

Further background to the Keystone matter, the status of enforcement action and further support and information is available on ASIC’s website at the link following: Shield Master Fund | ASIC.

Further information from ASIC with respect to receivership appointments

A guide for creditors in a receivership as prepared by ASIC is available here.

Further information from ASIC with respect to liquidation appointments

A guide for creditors in a liquidation as prepared by ASIC is available here.

Notices & Court Documents

Please note that some of the documents included may use Deloitte branding where one or more of the appointed insolvency practitioners worked for Deloitte at the time the document was produced, prior to their commencement with Alvarez & Marsal on 2 April 2025.

Notice of Termination
10 April 2025

Circular to Investors
4 April 2025

Court Orders
31 March 2025

Liquidators’ Statutory Report
26 February 2025

Circular to Creditors
16 December 2024

Significant Event Notice - Shield Master Fund
13 December 2024

VA Second Supplementary Report to Creditors
30 November 2024

Supplementary VA Second Report to Creditors
27 November 2024

Notice to Creditors
10 September 2024

VA Second Report to Creditors
25 November 2024

Significant Event Notice – Shield Master Fund
22 November 2024

Extension of Convening Period
18 September 2024