TORONTO, Aug. 4 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") today is providing investors with a further update on the status
of the liquidation of the Trust's assets in connection with the June 30, 2009
(the "Termination Date") termination of the Trust.
As has been previously announced, market conditions have prevented
Northwater Fund Management Inc. (the "Manager"), the Manager of the Trust, to
fully liquidate the Trust's assets by the Termination Date. Specifically, the
market conditions have caused many underlying hedge funds held directly or
indirectly by the Trust to invoke various restrictions on redemptions
including, without limitation, restricting redemptions to a limited percentage
of the aggregate net asset value of such underlying hedge funds, the temporary
suspension of redemptions altogether, or the commencement of a controlled
liquidation and wind-up of the underlying hedge fund's business.
On July 15th, 2009, the Trust paid a final quarterly distribution of
$0.4375 per unit and an Initial Termination Distribution of $3.87 per unit to
unitholders of record as at June 30th, 2009.
Based on the information that the Manager has available to it at this
time, approximately 91% of the underlying assets held directly or indirectly
by the Trust were subject to restrictions on liquidity at June 30th, 2009. In
addition, the Manager estimates that approximately 75% (based on the NAV at
June 30th, 2009) of the Trust may be subject to restrictions on liquidity that
could extend beyond December 31, 2009.
In an effort to distribute the proceeds to unitholders as soon as
practicable, the Manager is actively seeking alternative means of affecting
the monetization of the underlying hedge fund portfolio. The Manager will
provide further information to unitholders, if and when such details become
Listing on the Toronto Stock Exchange
As announced previously, the Manager, in its capacity as trustee of the
Trust, had requested that the units of the Trust remain listed on the Toronto
Stock Exchange ("TSX") beyond the Termination Date as the Trust continues to
work toward an orderly liquidation of all of its assets. The TSX has
determined to permit the continued trading in units of the Trust beyond the
Termination Date but not beyond September 30, 2009. While the Trustee will
continue to examine its options to further extend this deadline and to
maintain the listing of the Trust's units on the TSX, it is possible that
trading in units on the TSX may cease as of September 30, 2009.
Regardless of whether the listing on the TSX is maintained beyond
September 30, 2009, the Trust will continue to exist and unitholders of the
Trust will have a right to the return of their pro rata share of the assets of
the Trust as such assets are liquidated and cash becomes available for
distribution to unitholders.
Units of the Northwater Five-Year Market-Neutral Trust are listed on The
Toronto Stock Exchange under the symbol NYF.UN.
For further information:
For further information: Mohamed Khaki at Northwater Capital Management
Inc. at (416) 360-5435