Hubbard investors win payout
Some 208 long-suffering investors in Hubbard Management Funds are today receiving a share of $2.1 million and more money is to be repaid to them next month.
The distribution was announced today by the statutory managers of HMF, who also announced that investors could expect to receive all their original capital back.
It is only the second payment to the investors since HMF was placed in statutory management in June 2010. In April last year investors received about $9m.
The payment today follows High Court decisions late last year on how the assets in HMF should be split between approximately 300 investors.
It is the beginning of the return of all funds to investors after a 2.5 year wait.
The late Allan Hubbard ran the fund which largely contained investments in New Zealand companies.
The statutory managers said Mr Hubbard had overstated the value of HMF at around $83m. They said HMF was worth $40.75m at the end of last year.
The announcement investors would receive their original capital back ''will come as enormous relief to investors, who have been uncertain about repayments since the fund was put into statutory management,'' they said.
Investors who had taken out more cash from HMF than they had put in would receive nothing today and were not entitled to anything from the capital pool. There were 92 of them. They would not have to pay anything back.
There is also a surplus assets pool which will be distributed to investors once the capital pool has been paid out.
About 70 of the 92 are unlikely to be entitled to further payments from the surplus pool because the first payment they received in April 2012 was greater than their entitlement under the final distribution calculation.
The statutory managers said they expected to make another payment from the capital pool in March and further payments when it had cashed up enough assets to do so.
Once the capital pool had been emptied the statutory managers would revalue the remaining assets and confirm what each investor was entitled to from the surplus pool.