TORONTO, Aug. 4 /CNW/ - The Northwater 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 December 31, 2009
(the "Termination Date") termination of the Trust.
In anticipation of the termination of the Trust Northwater Fund
Management Inc. (the "Manager"), the Manager of the Trust, has taken actions
to liquidate the assets of the Trust. However, as announced previously, 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.
On July 29th, 2009, the Trust paid a quarterly distribution of $0.15 per
unit and an Initial Termination Distribution of $3.14 per unit to unitholders
of record as at June 30th, 2009.
As of June 30, 2009, approximately 79% of the Trust continued to have
exposure to underlying hedge fund market movements. Based on the information
that the Manager had available to it as of June 30, 2009, the Manager
anticipates that approximately 71% of the Trust may be subject to restrictions
on liquidity that could extend beyond the Termination Date. 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.
Units of the Northwater Market-Neutral Trust are listed on The Toronto
Stock Exchange under the symbol NMN.UN.
For further information:
For further information: Mohamed Khaki at Northwater Capital Management
Inc. at (416) 360-5435