Investors in one of Alan Hubbard's funds under statutory management are likely to get only 60% of their money back.
The Timaru businessman and his wife were placed under statutory management in June, along with seven charitable trusts, Aorangi Securities, and later, Hubbard Management Funds.
In their latest report, the statutory managers of Hubbard Management Funds say there appears to be a shortfall of cash.
The managers, from Grant Thornton, say they have serious concerns about the quality of reporting by Mr Hubbard in statements issued to investors.
They say documentation given to them shows the funds are worth $82 millon, but after meticulous investigation there appears to be a short fall of about $19 million.
As a result, investors face losses of about 40%.
The managers say investors face delays of several months before getting any money back.
One of the investors, Tony Brazier, says he's not disheartened, as the 60% figure can easily change and improve over time.
Mr Brazier wants a long-term management plan for the funds to be put in place to ensure the investors aim for a lot more than that.
Liaison group set up
Meanwhile, a liaison group of investors in Alan Hubbard's funds and trusts has been set up to help improve communication with the statutory managers overseeing the investments.
In their latest report, the statutory managers acknowledge many investors have been having trouble understanding what is happening to their investments.
One of the six investors in the liaison group, Noel MacPherson, says up until a week ago, there had been no satisfactory communication between the two parties.
He says the managers were being over-whelmed with emails, letters and phone calls from distraught and confused individuals.