The statutory managers of Hubbard Management Funds which is currently worth $44 million have received direction on how to allocate the fund to investors. This follows a High Court decision that determined a model for allocating repayments to investors.
“The Court’s decision was to accept a model submitted by Mrs Hubbard.” The statutory managers are presently undertaking the additional work needed to make the calculations required by this model. Under the Court order, some 50 investors will have to repay a total in excess of $3 million of distributions made in March 2012. The interim distributions were made following directions from the Court earlier this year.
The statutory managers have already commenced work to implement the Court’s directions. “Our role is to seek Court approval for key decisions and then implement those decisions.”
The Court has directed that cash invested less any cash withdrawals, are the first call on the fund, and that any remaining assets are to be distributed as return on each investor’s position reflecting the returns of each year. This ignores the returns and capital growth that were shown on the statements provided to investors by Mr Hubbard.
The statutory managers are now reconstructing each investor’s position under the approved method. They will, over coming months, be writing progressively to investors to confirm the accuracy of the information to be used for the calculations. This will enable further distributions to be made once this task is complete for all investors.
It is possible that the decision may yet be appealed by some investors the statutory managers said. Should there be an appeal, any distributions will be delayed while this progresses.
The full report is available on the Grant Thornton website at www.grantthornton.co.nz. Previous reports are also available on the site.
The statutory managers expect to provide a further report at the end of September 2012.
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