TORONTO, Nov. 2 /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") scheduled 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.
Based on the information that the Manager had available to it at the time, the Manager anticipates that approximately 71% of the Trust's assets continued to have exposure to underlying hedge fund market movements as of September 30, 2009. Based on the information that the Manager had available to it as of September 30, 2009, the Manager anticipates that approximately 55% of the Trust's assets may be subject to restrictions on liquidity that could extend beyond the Termination Date.
The Toronto Stock Exchange (the "TSX") has expressed to the Manager some concerns in relation to the continued listing of the units of the Trust on the TSX beyond the Termination Date. We expect to hear from the TSX on this matter in early December. Regardless of whether the listing on the TSX is maintained beyond the Termination Date the Trust will continue to exist and unitholders of the Trust 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.
The Manager continues to actively seek to monetize the underlying hedge fund portfolio and distribute the proceeds to unitholders as quickly as is practicable.
The Manager is committed to providing additional details to unitholders as they become available.
Units of the Northwater Market-Neutral Trust are listed on The Toronto Stock Exchange under the symbol NMN.UN.
SOURCE Northwater Market-Neutral Trust
For further information: For further information: Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435