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Citadel Income Fund T.CTF.UN

Alternate Symbol(s):  CTFUF

Citadel Income Fund (the Trust) is a Canada-based closed-end investment trust. The Trust’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. The Trust invests in a diversified portfolio of securities with the focus on income generation consisting of equity securities, of principally larger capitalization companies traded on a recognized stock exchange; debt securities with a focus on yield enhancement, with a minimum of 80% of debt securities invested in investment grade debt rated BBB or higher, and income funds. The Fund's portfolio is managed by Vestcap Investment Management Inc. Artemis Investment Management Limited is the investment fund manager of the Fund.


TSX:CTF.UN - Post by User

Comment by Nawaralsaadion Jul 31, 2013 10:37am
310 Views
Post# 21641255

RE:Ctf

RE:CtfI would recommend the Energy Income Fund (ENI.UN).

ENI.UN is a closed-end fund, the fund is trading at a 16% discount to NAV and is currently yielding 9.8% paid monthly. The fund holds an interesting collection of energy stocks (WCP, CEN, VET, BTE, PPL among others):

https://artemis.mobilelinkage.com/fundfiles/portfolio/ENI.UN Quarter ending Mar 31, 2013.pdf

Positives:

- You get a collection of high quality income and energy names at a 16% discount to their market value.
- Most of the yield is a return of capital
- The fund redeems 10% of its shares at NAV every year, and has offered multiple special redemption at NAV in the past.
- No debt.

Negatives:

- Due to the small size of the fund ($29m in assets) its management fees are quite high close to 2.5%.
- The fund is paying its dividends from selling the shares of its portfolio companies, thus it is shrinking further over time. - Most of the portfolio dividend payments are going to pay the fund expenses.
- Terminating the fund would incur a 5% of NAV payment to the manager.

All in all, I have a bullish stance towards the Canadian energy sector as I believe the strong price of oil and the smaller differentials have not yet filtered through to the Canadian energy names. ENI seems like an interesting way to get income, own a collection of energy assets at a discount and potentially profit from a rebound in the sector.

For more information on the fund you can check here:
https://artemis.mobilelinkage.com/investment_products.php?id=31

Regards,
Nawar

Disclaimer: Long ENI
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