TORONTO, Oct. 1 /CNW/ - The Northwater Five-Year Market-Neutral Trust (the "Trust") today is providing investors with a further update on the status of the liquidation of the Trust's assets in connection with the termination of the Trust.
As has been previously announced, market conditions have prevented Northwater Fund Management Inc. (the "Manager"), the Manager of the Trust, to fully liquidate the Trust's assets by June 30, 2009 (the "Termination Date"). Specifically, the market conditions have caused many underlying hedge funds held by the Trust to invoke various restrictions on redemptions including, without limitation, restricting redemptions to a limited percentage of the aggregate net asset value of such underlying hedge funds, the temporary suspension of redemptions altogether, or the commencement of a controlled liquidation and wind-up of the underlying hedge fund's business.
Based on the information that the Manager had available to it at the time, the Manager anticipates that approximately 84% of the Trust assets continued to have exposure to underlying hedge fund market movements as of August 31, 2009. Based on the information that the Manager had available to it as of August 31, 2009, the Manager anticipates that approximately 73% of the Trust may be subject to restrictions on liquidity that could extend beyond December 31, 2009.
In an effort to distribute the proceeds to unitholders as soon as practicable, the Manager is actively seeking alternative means of affecting the monetization of the underlying hedge fund portfolio. The Manager will provide further information to unitholders, if and when such details become available.
As announced previously, the units of the Trust were delisted from the Toronto Stock Exchange on September 30, 2009. Regardless of the delisting, the Trust will continue to exist and unitholders will have a right to the return of their pro rata share of the assets of the Trust as such assets are liquidated and cash becomes available for distribution to unitholders.
SOURCE NORTHWATER FIVE-YEAR MARKET-NEUTRAL TRUST
For further information: For further information: Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435