Statutory managers handling the affairs of Allan Hubbard's Hubbard Management Funds say the fund has a shortfall of more than $31 million, and investors will not be paid until next year at the earliest.
Mr Hubbard and his wife were placed under statutory management in June last year, along with seven charitable trusts, Aorangi Securities, and later, Hubbard Management Funds.
In their sixth report to investors, a statutory manager of Hubbard Management Funds, Grant Thornton, say the fund lost more than $7 million between October and January 2011, largely because of its investments in Pike River Coal and New Zealand Oil and Gas.
However, things could have been worse if they had not sold more than 400,000 shares in both firms just before the mine disaster on the West Coast in which 29 workers died.
The fund was worth $48.75 million at the end of January and had also been affected by the reconstruction of the Mercer Group and Olympus Pacific's volatile share price.
Mr Thornton says statutory managers are working on an application to the High Court to determine how the funds should be distributed to investors and expects to file the paperwork within six months.
It says everything is being done to speed the process, but it will be 2012 at the earliest before it makes a payment investors.
The statutory managers will release another report on Mr Hubbard's Aorangi Securities later this week.