The statutory managers of Allan Hubbard's business affairs have issued their fourth report on progress in unravelling his complex business affairs.
The report by statutory managers Richard Simpson, Trevor Thornton and Graeme McGlinn of Grant Thornton New Zealand Ltd said that only about a quarter of expected income from Aorangi Securities was received by September 30.
In the past Timaru-based businessman Mr Hubbard used his own assets to make up any shortfall but it is uncertain if investors can rely on this in future, the report said.
The managers are working with Mr Hubbard on selling Aorangi's assets while trying to rectify loans that are not meeting their obligations.
A portfolio of dairy farms has good prospects over time and buyers looking for a fire sale will be disappointed, the report said.
The report said investors in Hubbard Management Funds (HMF) could receive only 60 percent of what was on their March 2010 statements and it could be well into next year before they will see any returns.
The documentation the managers received reported HMF's total value at March 31 was $82 million.
"However, our review of the assets owned by HMF and allocated to investors confirmed a shortfall of some $13m of investments and almost $6m of cash when compared with a summary of all investors' statements," the managers said.
On the flip side, there were excess shares valued at $8m.
"The quality of the reporting by Mr Hubbard in the statements issued to investors is of serious concern to us. One of our main tasks has been to understand precisely what assets HMF owned, and to assess the market value of these assets.
"We achieved this by meticulously verifying the shares and their market values, in consultation with Mr Hubbard's advisers," the managers said.
The managers reiterated past statements that they are likely to have to seek a court ruling on whether the fund is considered a pool or made up of individual investor portfolios.
The managers say that of Aorangi's $24m investment in Te Tua Trust, a worst case estimate is that only $6.88m may be recoverable.
"The state of Te Tua's loan records, which are very poor, is also of serious concern," the managers said.
