TORONTO, Oct. 1 /CNW/ - The Northwater 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 December 31, 2009 (the "Termination Date") termination of the Trust.
In anticipation of the termination of the Trust Northwater Fund Management Inc. (the "Manager"), the Manager of the Trust, has taken actions to liquidate the assets of the Trust. However, as announced previously, market conditions have caused many underlying hedge funds held 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.
Based on the information that the Manager had available to it at the time, the Manager anticipates that approximately 71% of the Trust assets continued to have exposure to underlying hedge fund market movements as of August 31, 2009. Based on the information that the Manager had available to it as of August 31, 2009, the Manager anticipates that approximately 65% of the Trust may be subject to restrictions on liquidity that could extend beyond the Termination Date.
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 available.
Units of the Northwater Market-Neutral Trust are listed on The Toronto Stock Exchange under the symbol NMN.UN.
SOURCE Northwater Market-Neutral Trust
For further information: For further information: Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435