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
Citadel SMaRT Fund
TSX : CRT.UN

Citadel SMaRT Fund
MYDAS Fund
TSX : MYF.UN

MYDAS Fund
Citadel Multi-Sector Income Fund
TSX : CMS.UN

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

Series S-1 Income Fund
Citadel Income & Growth Fund
TSX : CIF.UN

Citadel Income & Growth Fund
Income & Equity Index Participation Fund
TSX : IEP.UN

Income & Equity Index Participation Fund
Energy Plus Income Trust
TSX : EPF.UN

Energy Plus Income Trust
Citadel Stable S-1 Income Fund
TSX : CSR.UN

Citadel Stable S-1 Income Fund

September 22, 2005 10:30 ET

Citadel Funds: Trading Discount Mitigation Announcement

CALGARY, ALBERTA--(CCNMatthews - Sept. 22, 2005) -



Stock Symbols: CTD.UN, TSX SDL.UN, TSX CHF.UN, TSX
CRT.UN, TSX MYF.UN, TSX CMS.UN, TSX
SRC.UN, TSX CIF.UN, TSX IEP.UN, TSX
EPF.UN, TSX CSR.UN, TSX

Citadel Diversified Investment Trust ("Diversified") TSX: CTD.UN;
Citadel S-1 Income Trust Fund ("S-1") TSX: SDL.UN;
Citadel HYTES Fund ("Hytes") TSX: CHF.UN;
Citadel SMaRT Fund ("Smart") TSX: CRT.UN;
MYDAS Fund ("MYDAS") TSX: MYF.UN;
Citadel Multi-Sector Income Fund ("Multi-Sector") TSX: CMS.UN;
Series S-1 Income Fund ("Series S-1") TSX: SRC.UN;
Citadel Income & Growth Fund ("Income & Growth") TSX: CIF.UN;
Income & Equity Index Participation Fund ("Income & Equity")
TSX: IEP.UN;
Energy Plus Income Trust ("Energy Plus") TSX: EPF.UN; and
Citadel Stable S-1 Income Fund ("Stable") TSX: CSR.UN
(collectively, the "Citadel Funds")


announced today the implementation of a number of initiatives designed to help mitigate the trading price discount to net asset value at which some of the Citadel Funds trust units are currently trading and at which they may trade in the future.

MANDATORY REPURCHASE PROGRAM

Each of the Citadel Funds has a mandatory repurchase program whereunder the particular Citadel Fund is required to repurchase its trust units offered for sale in the market at a price that is less than 95% of its then net asset value. This program is subject to a number of limits, exceptions and qualifications, including a quarterly limitation on repurchases of 1.25% of the number of trust units outstanding at the beginning of the particular quarter. In the past, each of the Citadel Funds has repurchased as many trust units as permitted under the Mandatory Repurchase Program in as short a time as possible. The effect of this was in some cases to exhaust the cap on the Mandatory Repurchase Program very quickly, with the result that the additional liquidity and market support generated by the Mandatory Repurchase Program was not available for significant portions of the quarter.

In order to more evenly distribute the benefits of the Mandatory Repurchase Programs for the Citadel Funds among all unitholders and during all time periods, effective October 1, 2005 purchases under the Mandatory Repurchase Programs will be prorated over all of the trading days in a fiscal quarter.

NORMAL COURSE ISSUER BIDS

Among the Citadel Funds, each of Citadel Income & Growth and Income & Equity Index Participation Fund have Normal Course Issuer Bids in place under which these Funds have been repurchasing additional trust units at discounts to net asset value. The Normal Course Issuer Bids have provided additional liquidity and market support for the trust units of these Citadel Funds and have also added to their net asset value of the Funds. Commencing immediately following the approval of the Toronto Stock Exchange, Normal Course Issuer Bids will also be adopted for MYDAS Fund and Citadel Multi-Sector Income Fund. In addition, the existing Normal Course Issuer Bids will continue to be utilized to increase liquidity and provide market support for both Citadel Income & Growth Fund and Income & Equity Index Participation Fund in a manner that provides the most benefit to the unitholders of these Citadel Funds.

ANNUAL TOP-UP DISTRIBUTIONS

As a result of the very successful net asset value performance of most of the Citadel Funds, including realizing significant capital gains, the administrators of the Citadel Funds are of the opinion that in some cases, unless annual top-up distributions are paid to unitholders, certain of the Citadel Funds will be required to make Additional Distributable Income or Additional Distributable Capital Amount distributions, which would pass the taxable portion of the excess income or gains to unitholders. Management of the administrators is currently reviewing the taxability of each of the Citadel Funds and will be making an announcement respecting whether additional top-up distributions will be made once the taxability analysis is complete.

Contact Information

  • Citadel Diversified Management Ltd.
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    1-877-261-9674
    Website: www.citadelfunds.com