TORONTO, June 21 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") is pleased to announce today that the net asset value ("NAV") of
the Trust per unit, as at May 31, 2007, is $23.65. The NAV reflects a return
of 0.60% for the month of May. The rolling 12-month return for the Trust was
12.10%. The Trust also announced today that it has declared a regular
quarterly distribution to be payable to unitholders of record on June 30, 2007
that is $0.4375. This distribution is expected to be paid on July 13, 2007.
The Trust, through a forward purchase and sale agreement, has exposure to
approximately 150% of a portfolio of market-neutral hedge funds held by
Northwater Five-Year Market-Neutral Fund Limited (the "Fund"). For the month
of May, 33 of the Fund's 36 managers posted positive returns. Eleven of the
twelve market-neutral strategies included within the Fund's portfolio
contributed positively to the bottom line. Specifically, the Fund's
statistical arbitrage managers, in aggregate, were the largest contributors to
the return of the Trust for the month.
The Fund's exposure to a fixed interest rate swap decreased the Trust's
return as the interest rate environment was unfavourable to the Trust over the
Subject to limits set out in the Trust's prospectus, the Trust is
required to purchase its units in the market in the event that the market
price of a unit of the Trust falls below 95% of the net asset value of the
Trust per unit. For the month of May, the Trust did not purchase any units
under this program.
The Northwater Five-Year Market-Neutral Trust is a well-diversified fund
of market-neutral hedge funds. Units are listed on The Toronto Stock Exchange
under the symbol NYF.UN.
For further information:
For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435