The Hubbard Management Funds (HMF) statutory managers from Grant Thornton reported today in their 12th Report to investors that they are still implementing the High Court directive made in June on how to distribute funds to investors. There have been no further distributions in the meantime. 

“We are required to review the records of each investor going back some 20 years to establish cash deposits and withdrawals and identify each investor’s net cash position. The Court’s directive is that the first step is for all investors to receive back the amounts originally invested,” said the Grant Thornton statutory managers.

“Each investor will be given the opportunity to review and confirm the accuracy of the data gathered and if they believe it to be incomplete they will need to provide the missing documentary evidence. When the position of each investor is finally determined, we will take the remainder of the assets and allocate them based on a formula which  takes into account the time investors have been in the fund and the returns on the NZX across the periods involved. This is a time consuming process.”

More claims against the assets of Fund have come to light since the last Report. There are now claims of about $7 million against the portfolio value of around $47 million. The Statutory Managers are working through these.

“Mrs Hubbard and her family interests are contesting $4.3 million of the $7 million in dispute. Another claim made by ASB Bank for $2.1 million will be determined by the Court later this year.

A further complexity to reconcile is that the HMF accounts show an investment in Aorangi of $3.6 million but only $0.470 million is recorded in the Aorangi accounts. It appears that the HMF figure is overstated but the reconciliation will be subject to an independent review. If this is the case, it will reduce the value of the HMF portfolio.”

The statutory managers will be reporting next to investors at the end of January 2013.

Further enquiries, please contact:

Michael  Dunlop
Acumen Republic
M +64 (0)275 747 587
D +64 (0)4 494 5142
E mdunlop@acumenrepublic.com

Julian  Light           
Acumen Republic
M +64 (0)21 243 8528
D +64 (0)4 494 5146
E jlight@acumenrepublic.com