Direction on how to allocate HMF funds
Those investors in Hubbard Management Funds who have not withdrawn their original contributions will be preferred on fund repayments, say the statutory managers for HMF.
Those investors will have the balance of those contributions repaid, the managers said.
The 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,'' Grant Thornton said in a statement.
Graeme McGlinn, Richard Simpson and Trevor Thornton of Grant Thornton were were appointed statutory managers of Hubbard Churcher Trust Management Ltd and Forresters Nominee Company Ltd, which jointly hold the majority of assets in Hubbard Management Funds.
The statutory managers were 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 said they had already started 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 a 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 Allan Hubbard.
The statutory managers were now reconstructing each investor's position under the approved method.
They would, over coming months, be writing progressively to investors to confirm the accuracy of the information to be used for the calculations. This would enable further distributions to be made once this task was 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 would be delayed while this progresses, they said.
- © Fairfax NZ News
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