HMF investors receiving 100% capital back

Press release
15 February 2013
HMF investors receiving 100% capital back

Investors in Hubbard Management Fund (HMF) can expect to receive all their original capital back from the capital return pool, the statutory managers announced today in their 13th Report to investors.

“All investors will receive back the capital they originally invested in HMF. This will come as an enormous relief to investors, who have been uncertain about repayments since the fund was put into statutory management,” the statutory managers said.

“Investors who have already taken out more cash from HMF than they put in will receive no further payment.

“We’re also delighted to announce that around 208 investors will receive a $2.1 million payout today, which equates to around 10 cents in the dollar from the capital return pool.”

Distribution of funds is well underway following the High Court’s decision in December 2012. The $2.1 million payout is the second payout, after an interim distribution of $9 million in March 2012.

Of the approximately 300 investors in HMF, 92 are not entitled to further payments from the capital return pool as they have already taken out more than they invested. ‘These investors will not have to pay anything back, but will not receive further payments going forward,” said the statutory managers. Around 70 of these investors are unlikely to be entitled to any further payment as the interim distribution they received in March 2012 exceeded their entitlement under the final distribution order calculation. All other investors are eligible to receive payments from the surplus assets pool once the capital return pool has been fully paid out.

“We expect to make a further payment from the capital return pool in March 2013, with further payments to be made as and when we realise sufficient assets to do so.”

“Once all capital return pool payments are completed, we will reassess the value of the remaining assets and confirm the entitlement calculation for each investor to the surplus pool assets.”

The remainder of the assets will be allocated on a basis that reflects the amount invested, the time investors were in HMF, and the returns in the New Zealand share market across the periods involved.

Now that the distribution process has begun, the statutory managers have suspended all distressed investor payments as of 31 January 2013.

- ends –

Notes to editors:

Attached: Thirteenth Statutory Managers’ Report - Hubbard Management Funds [PDF]

About Hubbard Management Fund (HMF):

The gross value of HMF portfolio before allowances and the interim distribution was $40.75 million as at December 2012. The 300 investors received their first payment in April 2012 of around $9 million. HMF’s initial value was overstated by Allan Hubbard at around $83 million, but was subsequently re-valued. It was placed into statutory management in June 2010. A High Court decision in December 2012 confirmed how payments would be distributed, and investors are now receiving their second payment under the terms of the decision. A total of $12.1 million has been distributed to date.

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