TORONTO, Jan. 20 /CNW/ - The Northwater Market-Neutral Trust (the "Trust") announced today that the net asset value of the Trust per unit as at December 31, 2009 is $3.71. This net asset value reflects the distribution of $0.08 per Unit previously declared to unitholders of record on December 31, 2009. The return of the Trust for the month of December is -1.26%. The rolling 12-month return for the Trust is -1.97%.
The Trust also announced today that it has declared the second termination distribution to be payable to unitholders of record on January 27, 2010 in the amount of $1.54 per unit. The second termination distribution is expected to be paid on February 3, 2010. The elimination of the currency hedging program at year end has enabled the Trust to distribute cash that was previously required to be reserved for the purposes of settling the Trust's obligations under the currency hedging program.
In addition, the Trust has concluded that no special distribution of the Trust's net income and realized capital gains will be required to ensure that the Trust will not be liable to pay income tax under Part I of the Income Tax Act.
In determining the net asset value of the Trust, the Trust relies on estimates provided by administrators or managers of each of the Trust's underlying hedge funds. Occasionally, these estimates may be revised and the Trust will be required to capture these revisions in subsequent net asset value calculations. The net asset value of the Trust is also affected by the finalization of the net asset value by the administrators of the underlying hedge funds.
Based on the information that Northwater Fund Management Inc. (the "Manager") had available to it at the time, the Manager anticipates that approximately 55% of the underlying assets of the Trust were subject to restrictions on liquidity at December 31, 2009. However, the Manager continues to actively seek alternative means of affecting the monetization of the underlying hedge fund portfolio of the Trust in an effort to distribute the proceeds to unitholders as soon as practicable. In the event that the Manager pursues an alternative means of monetizing the underlying hedge fund portfolio, it is likely that the value achieved through such alternative monetization of the underlying hedge fund portfolio may materially differ from the net asset values and estimates received from administrators or managers of the Fund's underlying hedge funds.
SOURCE Northwater Market-Neutral Trust
For further information: For further information: Dan Mills at Northwater Capital Management Inc. at (416) 360-2101