HMF payout still a long way off

Investors in Hubbard Management Funds will have to wait until next year for details of where they sit in regard to the liquidation of funds.

The good news is the fund has remained stable with the reported value at the end of May at $49.3 million, up slightly on the $48.75 million as at Janurary.

There is also potentially less of a cash shortfall with the statutory managers finding an additional $6.5 million in cash holdings.

In their seventh report statutory managers from Grant Thornton said they had filed a second application to the High Court to try and determine the entitlement to investors of the assets of HMF, and determine how those assets should be distributed.

“Despite the significant issues we have found, and the quality of the records, we still expect to file the papers with the Court by the end of September,” the statutory managers said.

A court hearing was unlikley to be scheduled until next year.

Grant Thornton reiterated that there was a potential shortfall of $31 million compared to investor statements as at March 31, 2010.

In the period to May 31, 2011, HMF had some wins and losses with gains in March and April “countered by a number of factors including a reduction in value of investments in Olympus Pacific and Scales Corporation (to the value accepted by the South Canterbury Finance receivers for 80% of the company) and the impact of the conversion rate between the New Zealand and Australian dollar.

“Additionally, our research and visits to certain unlisted entities have resulted in reducing one valuation by over $1 million.”“On the positive side, early indications are that the venture capital and private equity funds have generally had a good financial year with improved valuations. Mainfreight and Ryman Holdings have also performed well over the period.”

“Some investors have asked if we will produce individual investor statements as Mr Hubbard has done in the past. As noted in previous reports it appears the statements issued to investors have contained errors with, potentially, a $31 million dollar shortfall of assets when compared with all investor statements as at 31 March 2010.

“We will not be in a position to advise each investor of their tax position regarding the fund until we have directions from the Court as to the portion of HMF’s assets each investor is entitled to.”