Blue Ribbon Fund Management Ltd.

Blue Ribbon Fund Management Ltd.
Citadel HYTES Fund
TSX : CHF.UN

Citadel HYTES Fund
Series S-1 Income Fund
TSX : SRC.UN

Series S-1 Income Fund
Citadel Premium Income Fund
TSX : CPF.UN

Citadel Premium Income Fund
Citadel S-1 Income Trust Fund
TSX : SDL.UN

Citadel S-1 Income Trust Fund
Citadel Diversified Investment Trust
TSX : CTD.UN

Citadel Diversified Investment Trust

September 24, 2009 17:48 ET

Blue Ribbon Encouraged By Strong Unitholder Support

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - Blue Ribbon Fund Management ("Blue Ribbon") reminds Citadel unitholders that their proxy/voting instruction forms must be submitted by end of day Friday September 25th for their vote to be counted at the Special Meeting on September 30th for the following funds:



Citadel HYTES Fund (TSX:CHF.UN)
Series S-1 Income Fund (TSX:SRC.UN)
Citadel Premium Income Fund (TSX:CPF.UN)
Citadel S-1 Income Trust Fund (TSX:SDL.UN)
Citadel Diversified Investment Trust (TSX:CTD.UN)


"We are encouraged by the strong support we are receiving," said Mark Caranci, President and CEO of Blue Ribbon. "Unitholders must vote their proxy both AGAINST the reorganization resolution and FOR the hostile resolution for their voice to be heard."

Blue Ribbon maintains that the reorganization plan put forward by Crown Hill, the current administrator, to replace the investment manager, restrict redemption privileges, and potentially limit unitholders' right to vote on the funds' future direction will place Citadel unitholders in a fund that is drastically different from the one they have trusted for strong long-term returns.

Blue Ribbon's proposal for Citadel unitholders is superior and provides the following benefits:



1. Maintaining Bloom Investment Counsel as investment manager
2. Administration and investment management fees of 1% of NAV per annum, 25%
lower than Crown Hill's proposed 1.33%
3. Superior redemption policies
4. High distribution yield of approximately 10%
5. Superior unitholder protection and governance


In addition to unitholders and advisors across the country, the Blue Ribbon Proposal has received support from the analysts of five major investment banks, Gordon Pape, noted financial author and newsletter editor, and RiskMetrics, Canada's leading proxy advisory firm.

In their memo on the proposal, RiskMetrics stated: "The Blue Ribbon Proposal has a potential lower reorganization cost on a per unit basis, offers redemption rights that are much simpler, cheaper and less restrictive, and raises fewer governance questions." Permission to quote RiskMetrics Group was neither obtained nor sought.

"Clearly our proposal is the best choice for Citadel unitholders," added Mr. Caranci. "Make sure your proxy has been voted for the Blue Ribbon proposal which offers an administrator and investment manager that respects your rights and will provide strong long-term returns. If you have already voted and wish to change your proxy you can do so before the deadline."

Blue Ribbon recommends that the Right Way Forward for Citadel Funds is that unitholders vote their blue proxy/ voting instruction forms both AGAINST the reorganization resolution and FOR the hostile resolution (Blue Ribbon Proposal).

Visit our website at TheRightWayForward.com

Contact Information

  • For more information, investors are urged to contact their
    investment advisors or the individuals named below:
    or
    Mark Caranci
    416-642-6004
    or
    David Roode
    416-642-6008
    or
    Lorne Zeiler
    416-642-9058
    or
    Chris Cullen
    416-642-9064
    or
    Toll-free: 1-866-642-6001
    Email: info@bromptongroup.com