TORONTO, Dec. 18 /CNW/ - The Northwater Market-Neutral Trust (the
"Trust") announces today its quarterly distribution to unitholders of record
on December 31, 2007. This amount includes the Trust's regular quarterly
distribution and a special distribution. The aggregate amount of the regular
quarterly distribution and the special distribution is expected to be
approximately $2.50. The Trust will finalize the amount of this distribution
after its results have been determined. The distribution is expected to be
paid on or about January 29, 2008.
The Trust is required to distribute all of its income and realized gains
so that it is not liable to pay income taxes. The Trust cannot therefore
finalize the amount of the distribution declared until all of its net income
and realized capital gains for 2007 have been ascertained. The amount of the
special distribution is based upon transactions that have occurred to date and
will enable the Trust to pay out all of its income and realized gains. The
extent of this special distribution is largely a result of foreign currency
gains realized as a result of the Trust's currency hedging program. The
Trust's currency hedging program was established at the Trust's inception to
reduce the foreign currency risk associated with the underlying hedge fund
investments, which are denominated in U.S. dollars. Unitholders will be
notified of the full amount of the distribution on or about January 22, 2008.
The regular fourth quarter distribution and the special distribution will be
paid together and are expected to be paid to unitholders on or about
January 29, 2008.
It is anticipated that a substantial portion of this distribution will be
income for tax purposes.
The final character of the distribution for tax purposes and the amount
will be determined in accordance with the agreement establishing the Trust and
in accordance with the Income Tax Act (Canada). The Trust will finalize the
amount of the distribution after its results have been determined, including
the impact of its trading and currency hedging programs up to and including
December 31, 2007.
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, Northwater
Capital Management Inc., (416) 360-5435