TORONTO, Aug. 27 /CNW/ - The Citadel Group of Funds ("Citadel") announced
today the date for the previously called and postponed meetings of
unitholders. The special meetings of unitholders to consider the
Reorganization Proposal will be held on September 30, 2009.
These special meetings are for the following Citadel funds: Citadel
Premium Income Fund, Citadel S-1 Income Trust Fund, Citadel Stable S-1 Income
Fund, Citadel Diversified Investment Trust, Series S-1 Income Fund, Equal
Weight Plus Fund, Citadel SMaRT Fund and Citadel HYTES Fund. At these
meetings, unitholders will be asked to consider and approve the previously
announced Reorganization Proposal that includes the merger of these eight
funds with the Crown Hill Fund.
Highlights of the Reorganization Proposal include:
- A new investment manager, Jarislowky, Fraser Limited. Jarislowsky,
Fraser is one of Canada's pre-eminent money managers. In addition to
being Canada's largest independent money manager, with over $40
billion in assets under management, it is also considered to be one of
Canada's leading authorities on matters of shareholder rights and
corporate governance. Its reputation is unparalleled and it has the
breadth and depth of qualifications necessary to manage a broadly
diversified, conservative, income oriented portfolio.
- A broader investment mandate. The new investment strategy will include
a broad range of income producing securities and reduce reliance on
the shrinking universe of income trust investments.
- Continued High Level of Distributions. The continuing fund intends to
pay a high level of monthly distributions. The annual distribution is
currently set at approximately 8.5% of NAV per year and this is not
expected to change for the remainder of 2009.
- Lower Expenses. The new, larger fund resulting from the Reorganization
Proposal will have reduced total operating costs. Savings will be
achieved by rationalizing, reducing or eliminating some expenses
currently being paid by the funds. All of these savings will be passed
on to Unitholders.
- Greater Liquidity. Following the merger, the continuing fund is
expected to have a significantly larger market capitalization. This
should result in improved trading and liquidity for the units of the
continuing fund, which will continue to be listed on the Toronto Stock
- Redemptions. A number of the Citadel funds do not currently permit
unitholders to redeem their units. Nonetheless, if the Reorganization
Proposal is approved at the meetings, Unitholders who do not wish to
hold units in the continuing fund will be able to redeem their units
following the meeting. In addition, unitholders would have a
redemption right in 2010 and a limited annual redemption right in
Unitholders of the funds are encouraged to visit the corporate website,
www.citadelfunds.com, for more information leading up to the special meetings.
A dedicated "Special Meeting Info" page has been set up to provide timely
information and will be updated as new developments warrant. Further detailed
information on the Reorganization Proposal and its merits will be contained in
the management information circular that will be mailed to unitholders.
New Trustee for Selected Funds
Citadel also announced today a change in the trustee for eight of its
funds. Effective immediately, the trustee for Citadel Premium Income Fund,
Citadel S-1 Income Trust Fund, Citadel Stable S-1 Income Fund, Citadel
Diversified Investment Trust, Series S-1 Income Fund, Equal Weight Plus Fund,
Energy Plus Income Trust and Sustainable Production Energy Trust will be
Valiant Trust Company, a wholly-owned subsidiary of Canadian Western Bank.
Computershare Trust Company of Canada remains the trustee for the Citadel
HYTES Fund and the Citadel SMaRT Fund.
Citadel previously announced that the trustee had received requisitions
with respect to the proposal by Bloom Investment Counsel, Inc. and Blue Ribbon
Fund Management Ltd. (the "Hostile Proposal").
The trustee informed Citadel Fund Administrator that the requisitions
appeared to be valid. While Citadel Fund Administrator continues to believe
that the meetings of Citadel Premium Income Fund, Citadel S-1 Income Trust
Fund, Citadel Diversified Investment Trust, Series S-1 Income Fund and Citadel
HYTES Fund may have been improperly requisitioned, it is of the view at this
time that in light of the trustee's position it is in the best interest of the
funds to proceed to promptly deal with the Hostile Proposal.
As a result, Citadel announced today that the Hostile Proposal will be
considered by unitholders at the special meetings set for September 30, 2009.
This will permit the Hostile Proposals to be considered by unitholders on a
timely basis and in a manner that allows unitholders to make an informed
choice among the options presented.
Citadel will include the requisition materials related to the Hostile
Proposal in the circular being mailed to Citadel unitholders and will also
include the Hostile Proposal on the proxies being mailed to unitholders of the
Again, Unitholders of the funds are encouraged to visit the corporate
website, www.citadelfunds.com, for more information leading up to the special
meetings. A dedicated "Special Meeting Info" page has been set up to provide
timely information and will be updated as new developments warrant. Further
detailed information on the Reorganization Proposal and its merits will be
contained in the management information circular that will be mailed to
This release contains forward-looking statements. These statements are
based on certain factors and assumptions including, results of operations,
performance and effective income tax rates. While the Funds and Citadel Fund
Administrator consider these factors and assumptions to be reasonable based on
information currently available, they may prove to be incorrect. Several
factors could cause actual results to differ materially from those in the
forward-looking statements, including, but not limited to: the timing of and
the ability to carry out the Reorganization, including the mergers and
fluctuations in the net asset value. Forward-looking statements are given only
as at the date of this release and the Funds and Citadel Fund Administrator
disclaims any obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by applicable law.
For further information:
For further information: please contact Kingsdale Shareholder Services
Inc. at 1-888-518-6828; Investor or Media Contact: Janet Craig, Kingsdale
Communications Inc., (416) 867-2315, firstname.lastname@example.org