TORONTO, Sept. 22 /CNW/ -
Final Net Asset Value
The Northwater Top 75 Income Trusts Plus (the "Trust") announced today
that the final net asset value of the Trust per unit, as at August 31, 2008,
is $7.80. This net asset value per unit reflects the monthly cash distribution
of $0.08 per unit previously declared to unitholders of record on
August 31, 2008. The return of the Trust for the month of August is 2.81%. The
rolling 12-month return for the Trust is 2.11%.
The Trust announced previously that it has declared a regular monthly
distribution to be payable to unitholders of record on September 30, 2008 in
the amount of $0.08 per unit. The distribution is expected to be paid on
October 15, 2008.
The Trust generally holds an income trust portfolio comprised of an
equally weighted portfolio of the largest 75 income trusts by market
capitalization listed on the Toronto Stock Exchange. For the month of August,
the S&P/TSX Capped Income Trust Index posted a return inclusive of reinvested
distributions of 5.39%.
The Trust also has exposure to a portfolio of market-neutral hedge funds
held by Enhancement Fund Limited (the "Fund") through a forward purchase and
sale agreement. For the month of August, 7 of the Fund's 27 managers posted
positive returns and 3 out of the 10 market-neutral strategies included within
the Fund's portfolio contributed positively to the bottom line. Specifically,
the Fund's asset-backed securities managers, in aggregate, were the largest
positive contributors to the estimated return of the Trust for the month.
The Fund relies on estimates provided by administrators of each of the
Fund's underlying hedge funds. Occasionally, these estimates may be revised
and the Fund will be required to capture these revisions in subsequent net
asset value calculations. The net asset value of the Fund is also affected by
the finalization of the net asset value by the administrators of the
underlying hedge funds. Ultimately, the net asset value of the Fund impacts
the reported net asset value of the Trust and, accordingly, the Trust
indirectly relies on the estimates provided by administrators of each of the
Fund's underlying hedge funds.
Subject to limits set out in the Trust's prospectus, the Trust is
required to purchase its units in the market in the event that the market
price of a unit of the Trust falls below 95% of the net asset value of the
Trust per unit. For the month of August, the Trust purchased 100 units under
Fund Termination December 31, 2009
The Trust has announced that it expects to terminate on or about
December 31, 2009. The Advisor to the Trust and to the Fund has submitted, and
will continue to submit, redemptions to the hedge funds held by the Fund and
to which the Trust has exposure in anticipation of the termination of the
To the extent that the hedge funds to which the Trust has exposure are
not able to honour the redemption timelines to which they have committed,
delay payment or impose other restrictions on liquidity, the Adviser will
explore alternative means of liquidating the Fund's assets, including an
outright sale of the investment. In the event that the Fund is required to
sell any of its interests in hedge funds in lieu of redemption it may realize
less than the reported net asset value of such hedge fund, in which case the
Fund may realize a loss on such investment.
If the Trust is unable to dispose of all of the hedge funds in which it
is invested prior to its termination date, or does not receive payment of
redemption proceeds in full, the Trust may be required to distribute its net
assets on termination by way of multiple payments.
The Northwater Top 75 Income Trusts Plus is a well-diversified fund of
income trusts and market-neutral hedge funds. Units are listed on the Toronto
Stock Exchange under the symbol NTP.UN.
For further information:
For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435