TORONTO, Sept. 24 /CNW/ - Northwater Top 75 Income Trusts Plus (the
"Trust") announced today that the net asset value ("NAV") of the Trust per
unit, as at August 31, 2007, is $8.72. The NAV is net of the monthly cash
distribution of $0.08 per unit previously declared to unitholders of record on
August 31, 2007. The Trust also announced today that it has declared a cash
distribution of $0.08 per unit to holders of record on September 30, 2007. The
distribution is expected to be paid on October 15, 2007.
The return of the Trust for the month of August is -5.26%. The rolling
12-month return for the Trust is -0.97%.
The Trust generally holds an income trust portfolio comprised of an
equally weighted portfolio of the largest 75 income trusts by market
capitalization listed on the Toronto Stock Exchange. For the month of August,
the S&P/TSX Capped Income Trust Index posted a return inclusive of reinvested
distributions of -3.40%.
The Trust also has exposure to a portfolio of market-neutral hedge funds
held by Enhancement Fund Limited (the "Fund") through a forward purchase and
sale agreement. During the month, overall hedge fund returns were negative;
however, nine of the 25 hedge fund managers posted positive returns. Five of
the 12 market-neutral strategies included within the Fund's portfolio
contributed positively to the bottom line. Specifically, the Fund's distressed
securities managers, in aggregate, were the largest positive contributors to
the estimated return of the Trust for the month.
The decline in the investments of the Fund in the month of August was
consistent with the experience of many hedge fund investors and was due
largely to the dramatic market movements experienced throughout the month. The
losses experienced in August occurred in a wide variety of strategies in which
the Trust is invested. The main contributor was the Trust's exposure to
statistical arbitrage, which was confounded by the month's market movements.
The Fund relies on estimates provided by administrators of each of the
Fund's underlying hedge funds. Occasionally, these estimates may be revised
and the Fund will be required to capture these revisions in subsequent net
asset value calculations. The net asset value of the Fund is also affected by
the finalization of the net asset value by the administrators of the
underlying hedge funds. Ultimately, the net asset value of the Fund impacts
the reported net asset value of the Trust and, accordingly, the Trust
indirectly relies on the estimates provided by administrators of each of the
Fund's 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 of a unit of the Trust falls below 95% of the net asset value of the
Trust per unit. For the month of August, the Trust did not purchase any units
under this program.
The Northwater Top 75 Income Trusts Plus is a well-diversified fund of
income trusts and market-neutral hedge funds. Units are listed on the Toronto
Stock Exchange under the symbol NTP.UN.
For further information:
For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435