TORONTO, Jan. 22 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") is pleased to announce today that the net asset value (NAV) of
the Trust per unit, as at December 31, 2007, is $21.30. The NAV per unit is
net of the quarterly cash distribution of $0.4375 per unit previously declared
to unitholders of record on December 31, 2007. The NAV per unit reflects a
return of -0.37% for the month of December. The rolling 12-month return for
the Trust was -0.26%.
In addition, the Trust has concluded that no special distribution of the
Trust's net income and realized capital gains will be required to ensure that
the Trust will not be liable to pay income tax under Part I of the Income Tax
The Trust, through a forward purchase and sale agreement, has exposure to
approximately 150% of a portfolio of market-neutral hedge funds held by
Northwater Five-Year Market-Neutral Fund Limited (the "Fund"). For the month
of December, 24 of the Fund's 38 managers posted positive returns. Six of the
12 market-neutral strategies included within the Fund's portfolio contributed
positively to the bottom line. Specifically, the Fund's statistical arbitrage
managers, in aggregate, were the largest contributors to the return of the
Trust for the month.
The Fund's exposure to a fixed interest rate swap decreased the Trust's
return as the interest rate environment was unfavourable to the Trust over the
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 December, the Trust did not purchase any
units under this program.
The Northwater Five-Year Market-Neutral Trust is a well-diversified fund
of market-neutral hedge funds. Units are listed on The Toronto Stock Exchange
under the symbol NYF.UN.
For further information:
For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435