TORONTO, Jan. 8 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") is pleased to announce today that the projected net asset value
of the Trust per unit, as at December 31, 2007, is $21.33. This net asset
value reflects the quarterly cash distribution of $0.4375 per Unit previously
declared to unitholders of record on December 31, 2007 but does not take into
account any additional special distribution that the Trust may be required to
pay in order to ensure that the Trust distributes all of its net income and
realized capital gains 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 additional special distribution will be required for 2007. However, the
Trust cannot finalize the amount of any special distribution until all of its
net income and realized capital gains for 2007 have been ascertained.
The return of the Trust for the month of December is estimated at -0.22%.
The rolling 12-month return for the Trust is approximately -0.11%. The Trust
will finalize its net asset value per unit as reports from administrators and
managers are finalized. The final net asset value per unit will be provided to
investors once it is available.
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, 22 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 positive contributors to the
estimated 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