TORONTO, June 19 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") is pleased to announce today that the net asset value of the
Trust per unit as at May 31, 2008 is $20.41. This reflects a return of the
Trust for the month of February of 1.65%. The rolling 12-month return for the
Trust is -6.37%. The Trust also announced today that it has declared a regular
quarterly distribution to be payable to unitholders of record on June 30, 2008
that is $0.4375. This distribution is expected to be paid on July 15, 2008.
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 May, 25 of the Fund's 32 managers posted positive returns, while 9 of the
10 market-neutral strategies included within the Fund's portfolio added to the
bottom line. Specifically, the Fund's statistical arbitrage managers, in
aggregate, were the largest positive contributors to the estimated return of
the Trust for the month.
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.
The Fund's exposure to a fixed interest rate swap increased the Trust's
return as the interest rate environment was favourable 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 May, 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