TORONTO, Aug. 24 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") announced today that the net asset value of the Trust per unit
as at July 31, 2009 is $7.14. The return of the Trust for the month of July is
-4.90%. The rolling 12-month return for the Trust is -36.89%.
The Trust had exposure to a portfolio of market-neutral hedge funds
through its ownership of the Northwater Five-Year Market-Neutral Fund Limited
(the "Fund"). For the month of July, 13 of the Fund's 21 managers posted
positive returns. Eight of the nine market-neutral strategies included within
the Fund's portfolio contributed positively to the bottom line. Specifically,
the Fund's convertible arbitrage managers, in aggregate, were the largest
positive contributors to the estimated return of the Trust for the month.
As announced in the press release dated July 6, 2009, the Trust has
direct exposure to the fund of hedge funds from June 30, 2009. These funds are
denominated primarily in US dollars. In July 2009, the US dollar depreciated
against the Canadian dollar by 6.91%.
The Fund relies on estimates provided by administrators or managers of
each of the Fund's underlying hedge funds. 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 or managers 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 July, the Trust purchased 55,100 units under
Northwater Fund Management Inc. (the "Manager") previously advised
unitholders that the Trust lost its "qualified investment" status for
registered accounts with effect from June 30, 2009. The Trust has also
provided investors with periodic updates on the termination of the Trust.
Investors are advised to refer to the press releases containing these updates.
The Northwater Five-Year Market-Neutral Trust is a fund of hedge funds.
Units are listed on The Toronto Stock Exchange under the symbol NYF.UN.
For further information:
For further information: Mohamed Khaki at Northwater Capital Management
Inc. at (416) 360-5435