TORONTO, Sept. 22 /CNW/ -
Final Net Asset Value
The Northwater Market-Neutral Trust (the "Trust") announced today that
the net asset value of the Trust per unit as at August 31, 2008 is $10.91. The
return of the Trust for the month of August is -1.17%. The rolling 12-month
return for the Trust is approximately -2.07%. The Trust also announced
previously that it has declared a regular quarterly distribution to be payable
to unitholders of record on September 30, 2008 in the amount of $0.22 per
unit. This distribution is expected to be paid on October 29, 2008.
For the month of August, 9 of the Trust's 31 managers posted positive
returns, while 2 of the 10 market-neutral strategies included within the
Trust's portfolio added to the bottom line. Specifically, the Trust's
asset-backed securities managers, in aggregate, were the largest positive
contributors to the estimated return of the Trust for the month.
The Trust relies on estimates provided by administrators 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.
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 falls below 92.5% of the net asset value of the Trust. The Trust also
makes purchases of its units pursuant to a normal course issuer bid. The Trust
did not purchase any units under these programs during the month.
Fund Termination December 31, 2009
As previously disclosed, the Trust expects to terminate on or about
December 31, 2009. The Advisor to the Trust has submitted and will continue to
submit redemptions to the hedge funds held by the Trust in anticipation of the
termination of the Trust.
To the extent that the hedge funds in which the Trust is invested are not
able to honour the redemption timelines to which they have committed, delay
payment or impose other restrictions on liquidity, the Adviser will explore
alternative means of liquidating the Trust's assets, including an outright
sale of the investment. In the event that the Trust is required to sell any of
its interests in hedge funds in lieu of redemption, it may realize less than
the reported net asset value of such hedge fund, in which case the Trust may
realize a loss on such investment.
If the Trust is unable to dispose of all of the hedge funds in which it
is invested prior to its termination date, or does not receive payment of
redemption proceeds in full, the Trust may be required to distribute its net
assets on termination by way of multiple payments.
The Northwater Market-Neutral Trust is a well-diversified fund of
market-neutral hedge funds. Units are listed on The Toronto Stock Exchange
under the symbol NMN.UN.
For further information:
For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435