Citadel Income Fund T.CTF.UN

Alternate Symbol(s): CTFUF

Citadel Income Fund (the Fund) is a Canada-based closed-end investment trust. The Fund’s investment objectives are to provide its Unitholders with a stable stream of monthly distributions and to preserve and potentially enhance the Net Asset Value (NAV) of the Fund. It seeks to achieve these objectives by investing in a diversified portfolio (the Portfolio) of securities (the Portfolio Securities) consisting of equity securities of principally larger capitalization companies traded on a recognized stock exchange, debt securities, with a minimum of 80% of debt security investments in investment grade debt rated BBB or higher, and income funds. The Fund’s portfolio is managed by Vestcap Investment Management Inc. (the Portfolio Advisor). Artemis Investment Management Limited is the investment fund manager of the Fund.

TSX:CTF.UN - Post by User

Citadel Income Fund > Fund objectives

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Comment by ChupacabraBuenoon Apr 28, 2014 4:09pm

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Post# 22499614

RE:Fund objectives

I'm sure that management would claim that cutting the div to preserve capital was not unilateral - as is clear from this BB, some investors were asking them to do just that. Still it was a surprising move. Predictably, the SP took a hit, as those who liked the high div as it was were inclined to sell & those who want capital gains were probably watching other funds that already had low dividends.

This surprise change is yet another stick with which management could be beaten - with some justification. But with NAV now at $4.68, things do seem to be unfolding according to plan. CTF should be a great buy for those looking for relatively safe capital gains.

Buying closed-end funds @ discount to NAV is a tried and true method of making gains. The funds have been out of favour in recent years, but their popularity may have a resurgence. GLTA!

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