Brompton Administration Limited

Citadel Diversified Investment Trust
TSX : CTD.UN

Citadel Diversified Investment Trust
Citadel HYTES Fund
TSX : CHF.UN

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

Citadel S-1 Income Trust 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 SMaRT Fund
TSX : CRT.UN

Citadel SMaRT Fund
Citadel Stable S-1 Income Fund
TSX : CSR.UN

Citadel Stable S-1 Income Fund

August 06, 2009 09:28 ET

Brompton and Bloom Announce Strong Support for Meeting Requisition of Certain Citadel Funds

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2009) - Brompton Administration Limited ("Brompton") and Bloom Investment Counsel, Inc. ("Bloom") are pleased to announce that they have received overwhelming support from unitholders and investment advisors for their proposal to hold special unitholder meetings for seven Citadel Funds. Five of the seven funds targeted have already exceeded the required 20% threshold to requisition a meeting. The actual levels of unitholder support received to date for these funds range from 23% to more than 41%.

Due to strong investor support, requisitions for special meetings of the following funds have been made to the Trustee of the Funds:



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


These Funds represent approximately $700 million in net assets as of July 31, 2009. Brompton and Bloom are asking the Trustee and the Administrator of the Funds to include their proposal on the agenda for the unitholder meetings which have been called for September 3, 2009 in Toronto, so that unitholders can make an informed choice about their future investment in the Funds.

"We are very pleased by the support we have received to date," said Peter Braaten, Chairman Brompton Funds. "Our objective is to gain the necessary support from unitholders so that our proposal can be considered for all seven funds. We are confident we will reach that goal."

Brompton and Bloom believe that their proposal is a superior alternative for unitholders and it is in the best interests of unitholders to ensure that they have the opportunity to consider this proposal.

The purpose of the Brompton and Bloom proposal is to replace Crown Hill Fund (MYT.UN-T) as administrator and to merge the Funds into a single continuing fund with a new investment strategy to meet the objective of providing unitholders with a variable level of monthly cash distributions in an amount to be determined and announced from time to time, which is initially expected to result in a yield of 10% per annum based on current net asset value and an opportunity to participate in the gains in the value of the investment portfolio. Unitholders will also be offered an annual net asset value redemption feature and enhanced governance protection. Bloom will act as the investment manager for the continuing fund and Brompton Funds Management will provide administrative services.

Unitholders of the remaining two funds being Citadel SMaRT Fund (TSX:CRT.UN) and Citadel Stable S-1 Income Fund (TSX:CSR.UN) have already confirmed their strong support for requisitioning meetings and levels continue to rise but are currently less than the 20% required. In order to ensure that all unitholders are given the opportunity to consider the Brompton and Bloom proposal at a meeting of unitholders, investors are urged to contact their investment advisors or the individuals named below:



Mark Caranci - 416-642-6004 Lorne Zeiler - 416-642-9058

David Roode - 416-642-6008 Chris Cullen - 416-642-9064

Toll-free: 1-866-642-6001 Email: info@bromptongroup.com

Contact Information

  • 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