HC Partners Statement on Hubbard Funds

The directors of HC Partners Ltd have been caught up in the complex investment ownership arrangement that is part of the Hubbard Management Funds, according to Graeme McGlinn, Statutory Manager of the Hubbard Management Funds.

³I would like to make it clear that the statutory management is in no way a reflection on the directors' management of their clients' trusts. It merely provides us with the control we need in protecting and managing the investments in Allan Hubbard¹s Hubbard Management Funds business,² he said.

Hubbard Churcher Trust Management Limited, which is associated with the Timaru accountancy practice of HC Partners Ltd, was one of a number of entities that were placed in Statutory Management recently.

Nigel Gormack, director of HC Partners, confirmed that they recognised Statutory Management was necessary.

³Some of the investments in Allan Hubbard¹s Hubbard Management Funds business were found to have been recorded by Allan Hubbard as being held by Hubbard Churcher Trust Management Limited as a Bare Trustee for the fund.

³The Statutory Managers wanted to ensure that these investments were under their control and protection and the best way to do this was to place Hubbard Churcher Trust Management Limited into Statutory Management until they have completed their tasks.²

³They have our full support in protecting the investors¹ interests,² he said

Hubbard Churcher Trust Management Limited is otherwise not linked in any way to Allan Hubbard¹s Hubbard Management Funds business. As an independent trustee company it holds assets for and on behalf of clients.

³To ensure minimal disruption to the affairs of other non-related trusts, Hubbard Churcher Trust Management Limited would be retired as an Independent Trustee and replaced by a new trustee as each client trust considers appropriate.

²Discussions with the Statutory Manager have seen this transfer process commenced and we wish to place on record the firm¹s appreciation to our clients for their support and understanding through these trying times.²

HC Partners also thanked the local legal and banking fraternities for their positive and helpful stance.

Mr McGlinn confirmed that the Statutory Manager has, and will continue to have, no objection to Hubbard Churcher Trust Management Limited retiring as an Independent Trustee of any Trust not associated with or linked to Allan Hubbard, or any of the other entities currently subject to Statutory Management.

END