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Investors in statutory-managed Hubbard Management Funds will get 100% of their capital back.
A $2.1 million payment to 208 investors is being made today, equating to about 10 cents in the dollar of the capital invested.
But the question remains when final payments will be made.
Ninety-two investors will not get payments today because they were overpaid in earlier distributions.
Just over $12 million has been distributed, but some of that was investment profits.
The payment comes after the High Court determined in December how investors would be repaid, in a decision that was not appealed.
Grant Thornton has dropped moves to try and claw back overpayments to investors.
Former Commerce Minister Simon Power appointed the statutory managers of deceased Timaru financier Allan Hubbard and his wife Jean, and various entities, in mid-2010.
In their 13th report, released today, HMF statutory managers Trevor Thornton, Richard Simpson and Graeme McGlinn, of Grant Thornton, say the return of 100% capital will be huge relief to investors.
"We expect to make a further payment from the capital return pool in March, with further payments to be made as and when we realise sufficient assets to do so."
Liquid assets sold
The report says the value of HMF portfolio is $40.75 million at December 2012.
But since then its liquid assets in New Zealand and Australia – which were not quantified – have mostly been sold, in late January and early February.
The report warns it needs to retain sufficient cash to meet its commitments, including calls for cash from private equity funds.
Grant Thornton says the fund had $3.4 million in cash at December 31 and it has to hold $3.7 million to fund such calls.
The portfolio gained $869,000 between September 1 and December 31 last year, including rises in the price of Fletcher Building, Mainfreight and Ryman Healthcare shares.
Grant Thornton has settled a dispute over Scales Corporation shares, which resulted in a $1.875 million payment to the trustees of the failed South Canterbury Finance, allowing it to retain ownership of Scales shares worth an estimated $2.1 million.
Mercer Group shares worth $825,000 have been transferred to security holder ASB Bank, and Grant Thornton will pursue a claim against Allan Hubbard's estate and Jean Hubbard.
The report says share investments transferred to HMF to be managed by Mr Hubbard will be transferred back to investors over the coming weeks.
The size of HMF's investment in Hubbard unit Aorangi Securities is still in question.
HMF's administration costs have hit $5.8 million, including Grant Thornton fees and disbursements of $2.6 million.