TORONTO, Dec. 16 /CNW/ - The Northwater Market-Neutral Trust (the "Trust") announced today that the net asset value of the Trust per unit as at November 30, 2010 is $1.41. The return of the Trust for the month of November is 3.33%. The rolling 12-month return for the Trust is -1.79%.
The Trust also announced today that it has declared the sixth termination distribution to be payable to unitholders of record on December 31, 2010 in the amount of $0.05 per unit. This termination distribution is expected to be paid on January 10, 2011.
The Trust is required to distribute 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. The Trust cannot, therefore, finalize the amount of the distribution declared until all of its net income and realized capital gains for 2010, if any, have been ascertained. It is not currently anticipated that any such special distribution will be required for 2010. However, if such a special distribution is required to be made after the Trust's net income and realized capital gains for 2010 have been ascertained, the special distribution would be expected to be paid on January 28, 2011.
The final character of the distribution for tax purposes and the amount will be determined in accordance with the agreement establishing the Trust and in accordance with the Income Tax Act (Canada). The Trust will finalize the amount of the distribution after its results have been determined for the year ending December 31, 2010.
Status of Wind-up
The Trust also provided investors with an update on the status of the wind-up of the Trust and its ongoing efforts to liquidate the remaining assets of the Trust as soon as reasonably practicable after the scheduled termination date of the Trust that was scheduled to occur on December 31, 2009 (the "Termination Date").
As announced previously, market conditions have caused all of the remaining 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. This has prevented the Trust from being able to proceed with the distribution of the remaining assets of the Trust to unitholders and has forced the Trust to continue to exist beyond the Termination Date.
The Manager continues to actively seek alternative means of affecting the monetization of the underlying hedge fund portfolio of the Trust in an effort to distribute the proceeds to unitholders as soon as practicable. In the event that the Manager pursues an alternative means of monetizing the underlying hedge fund portfolio, it is likely that the value achieved through such transactions may materially differ from the net asset values and estimates received from administrators or managers of the Trust's underlying hedge funds.
As previously announced by the Manager, the Toronto Stock Exchange ("TSX") delisted units of the Trust and the Trust ceased trading on the TSX effective as of December 31, 2009. Regardless of the delisting of units of the Trust on December 31, 2009, 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.
For further information: For further information:
please contact: Dan Mills at Northwater Capital Management Inc. at (416) 360-2101