TORONTO, June 5 /CNW/ - The Northwater Five-Year Market-Neutral Trust
(the "Trust") announced today that the projected net asset value of the Trust
per unit, as at May 31, 2009, is $11.78. The return of the Trust for the month
of May is estimated at 0.51%. The rolling 12-month return for the Trust is
The Trust, through a forward purchase and sale agreement, has exposure to
a portfolio of market-neutral hedge funds held by Northwater Five-Year Market-
Neutral Fund Limited (the "Fund"). For the month of May, 12 of the Fund's 22
managers posted positive returns. Seven of the nine market-neutral strategies
included within the Fund's portfolio contributed positively to the bottom
line. Specifically, the Fund's convertible arbitrage strategy managers, in
aggregate, were the largest positive contributors to the estimated return of
the Trust for the month.
In calculating the estimated return of the Trust for the month and the
net asset value of the Trust, the Trust relies on estimates provided by
administrators and/or managers of each of the Fund's underlying hedge funds.
The estimates received by the Fund's investment advisor from such
administrators and/or managers of the Fund's underlying hedge funds may differ
from the final reported monthly returns of such underlying hedge funds.
The Trust will firm up its net asset value per unit as reports from
administrators and managers of the underlying hedge funds held by the Fund are
finalized. The final net asset value per unit of the Trust will be provided to
investors once it is available. It is possible that the final net asset value
per unit and the final return of the Trust for the month may differ from the
preliminary estimates provided herein.
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 diversified fund of
hedge funds. Units are listed on The Toronto Stock Exchange under the symbol
For further information:
For further information: please contact: Mohamed Khaki at Northwater
Capital Management Inc. at (416) 360-5435