Bloom Investment Council, Inc.

Brompton Administration Limited

Citadel Diversified Investment Trust
TSX : CTD.UN

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

Citadel S-1 Income Trust Fund
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

September 10, 2009 12:02 ET

Brompton and Bloom are Pleased to Announce Filing of Their Proxy Circular-The Right Way Forward

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2009) - Blue Ribbon Fund Management ("Blue Ribbon"), an associated company of Bloom Investment Counsel, Inc. ("Bloom") and Brompton Administration Limited ("Brompton"), today announced that it has filed a Proxy Circular regarding their proposal for the following funds.

- Citadel Diversified Investment Trust (TSX:CTD.UN)

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

- Citadel HYTES Fund (TSX:CHF.UN)

- Series S-1 Income Fund (TSX:SRC.UN)

- Citadel Premium Income Fund (TSX:CPF.UN), (collectively, the "Citadel Funds")

Blue Ribbon believes it is offering a superior alternative proposal to unitholders that combines the Citadel Funds into a single fund called Blue Ribbon High Income Fund. This fund has been modelled after the very successful Citadel Diversified Income Fund which has earned a compound annual return, gross of management expense ratio, of 13.2% in the 12 years since inception. The Fund's investment objectives will be to provide monthly cash distributions and the opportunity to participate in capital gains. The key benefits of the Blue Ribbon Proposal are:

- Maintaining Bloom Investment Counsel as Investment Manager. Mr. Bloom was recognized on September 2, 2009 by Brendan Wood International as one of its 50 TopGun Canadian Equity Portfolio Managers;

- Administration and Investment Management Fees that are 25% lower than in the Crown Hill Proposal;

- Better redemption privileges which should significantly enhance the value of your investment. The Crown Hill proposal includes an onerous redemption submission procedure, redemption charges and restricted redemption privileges;

- High Monthly Distributions;

- Trailer fees;

- Enhanced unitholder protection and governance features; and

- Warrants to purchase additional units of the Fund with a restriction against dilutive offerings.

Over the past 15 months, Crown Hill has made a number of changes and proposals as the administrator for the Crown Hill Fund that have raised concerns with investors, investment advisors and, most recently, securities regulators. Many of these concerns have not been addressed in the Crown Hill Proposal. If the Crown Hill Proposal is approved, Crown Hill Capital will retain the power to change your fund features at any time without unitholder approval. Citadel unitholders risk losing valuable rights by voting in favour of Crown Hill's reorganization proposal.

"Brompton and Bloom are committed to enhancing Citadel unitholder value and ensuring the highest levels of corporate governance will be achieved and maintained," said Mark Caranci, President & CEO of Brompton. "We believe our proposal provides the best alternative to protect the value of your investment, whether you wish to redeem or remain as unitholders".

Blue Ribbon recommends that the Right Way Forward for Citadel Funds unitholders is to vote their blue proxy/ voting instruction forms both AGAINST the reorganization resolution and FOR the hostile resolution (Blue Ribbon Proposal) for the upcoming meeting of unitholders to be held on September 30, 2009.

Investors are urged to review the Blue Ribbon Proxy Circular which is available on the Blue Ribbon website at www.TheRightWayForward.com or www.sedar.com, and to vote their proxy as soon as possible.

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
    info@bromptongroup.com