Blue Ribbon Fund Management Ltd.

Blue Ribbon Fund Management Ltd.
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 21, 2009 13:14 ET

Support Grows for Blue Ribbon Proposal

RiskMetrics Group Recommends Blue Ribbon Proposal

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2009) - Blue Ribbon Fund Management, the sponsor of the so called "Hostile Proposal" relating to 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), and Citadel Premium Income Fund (TSX:CPF.UN), (collectively, the "Citadel Funds") announced today that it has received tremendous support from Citadel unitholders and investment advisors, the analysts of five of the major investment dealers, noted financial author Gordon Pape and most recently RiskMetrics Group, the premier institutional proxy advisor.

RiskMetrics Group, the leading provider of risk management and corporate governance products and services to participants in the global financial markets, issued reports for the five funds in the Blue Ribbon proposal, all of which recommend voting AGAINST the Crown Hill Proposal and FOR the Blue Ribbon Proposal. RiskMetrics met with management teams from both Blue Ribbon and Crown Hill and analyzed the proxy circulars from both parties. Their conclusion which is the same for all five funds is noted below.

"It appears that, compared to the Crown Hill Proposal, 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. Therefore, on balance, the Crown Hill Proposal (the Reorganization Resolution) does not warrant unitholder support while the Blue Ribbon Proposal (the Hostile Resolution) warrants unitholder support." Permission to quote RiskMetrics Group was neither obtained nor sought.

Mark Caranci, President of Blue Ribbon Fund Management said, "we have received an overwhelming number of calls from investors committing their proxy forms in our favour and many are asking us how to change their previously cast vote to support the Blue Ribbon proposal after they read our proxy circular". The analysts at five major investment dealers also indicated their support for the Blue Ribbon proposal in reports issued to their investment advisors and retail investors. Citadel unitholders are encouraged to contact their investment advisor for further details on the Blue Ribbon Proposal and the individuals noted below.

Blue Ribbon reminds investors that if they vote in favour of the "Reorganization Proposal" initiated by Crown Hill, they will put themselves into a fund to which Crown Hill has the power to make substantive changes to any feature of the fund, without consulting unitholders. It is a power that Crown Hill has used in the past to cancel redemptions, increase fees and increase the fund's risk profile, and which Blue Ribbon believes Crown Hill may use again in the future.

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) for the upcoming meeting of unitholders to be held on September 30, 2009.

Investors are urged to visit our website at www.therightwayforward.com, to review the Blue Ribbon Proxy Circular on www.sedar.com, and to vote their proxy as soon as possible. If you require information on how to change a previously cast vote, please contact the following people.

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