Statutory managers say $9 million has been paid to about 90% of investors in the Hubbard Management Fund - their first interim payout.
Many investors need their funds as soon as possible, according to the statutory managers, Grant Thornton. A High Court ruling has agreed to an interim distribution of up to $12 million and a further court hearing is due next month.
Allan and Jean Hubbard were placed in statutory management in June 2010, along with seven charitable trusts and two investment vehicles, including the Hubbard Management Fund, and shares held by the fund have been sold to provide the cash for the first payout.
Before the distribution, the fund's portfolio was worth about $43 million, less than half the $89 million that was recorded on investor statements in March 2010.
After the next court decision is known, statutory managers expect to be able to sell down the balance of the portfolio and distribute it over several years.