Northwater Top 75 Income Trusts PLUS - Actions in Anticipation of the
Termination of the Trust and Update on Status of Wind-up
The Trust generally holds an income trust portfolio (the "Income Trust Portfolio") comprised of an equally weighted portfolio of the largest 75 income trusts by market capitalization listed on the
ACTIONS IN ANTICIPATION OF TERMINATION OF THE TRUST ---------------------------------------------------
In anticipation of the scheduled Termination Date of the Trust, Northwater Fund Management Inc. (the "Manager"), in its capacity as manager of the Trust, has liquidated the Income Trust Portfolio in an orderly manner to generate sufficient cash in the portfolio to settle the Forward Agreement in an effort to effect an orderly wind-up of the Trust as soon as practicable after the Termination Date.
Upon settlement of the Forward Agreement, the Trust will have direct exposure to the Fund. Following this action, the Trust's exposure to the Fund will no longer be hedged to the Canadian dollar. The creation of a new hedging program would require the Trust to hold back a material amount of cash and would significantly restrict the Trust's ability to distribute cash to unitholders.
UPDATE ON THE STATUS OF THE WIND-UP OF THE TRUST ------------------------------------------------
As announced previously, many underlying hedge funds held by the Fund placed 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 61% of the Fund (47% of the Trust) were subject to restrictions on liquidity at
The
Units of the Northwater Top 75 Income Trusts PLUS are listed on The
For further information: For further information: Dan Mills or Mohamed Khaki at Northwater Capital Management Inc. at (416) 360-5435
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