TORONTO, Jan. 21 /CNW/ -The Northwater Market-Neutral Trust (the
"Trust") announced today that the net asset value of the Trust per unit
as at December 31, 2010 is $1.30. This net asset value reflects the
sixth termination distribution of $0.05 per unit previously declared to
unitholders of record on December 31, 2010, but does not take into
account any additional special distribution that the Trust may be
required to make so that the Trust will not be liable to pay income tax
under Part I of the Income Tax Act. It is not currently anticipated
that any such special distribution will be required to be made for
The return of the Trust for the month of December is -3.66%. The rolling
12-month return for the Trust is -4.18%.
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. 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.
Status of Wind-up
The Trust also provided investors with an update on the status of the
wind-up of the Trust and its ongoing efforts to liquidate the remaining
assets of the Trust as soon as reasonably practicable after the
scheduled termination date of the Trust that was scheduled to occur on
December 31, 2009 (the "Termination Date").
As announced previously, market conditions have caused all of the
remaining 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. This has prevented the Trust
from being able to proceed with the distribution of the remaining
assets of the Trust to unitholders and has forced the Trust to continue
to exist beyond the Termination Date.
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 transactions may materially differ from
the net asset values and estimates received from administrators or
managers of the Trust's underlying hedge funds.
As previously announced by the Manager, the Toronto Stock Exchange
("TSX") delisted units of the Trust and the Trust ceased trading on the
TSX effective as of December 31, 2009. Regardless of the delisting of
units of the Trust on December 31, 2009, the Trust will continue to
exist and unitholders will have a right to the return of their pro rata
share of the assets of the Trust as such assets are liquidated and cash
becomes available for distribution to unitholders.
SOURCE Northwater Market-Neutral Trust
For further information:
Dan Mills at Northwater Capital Management Inc. at (416) 360-2101.