1. Why has Citadel chosen to specialize in closed end, exchange traded funds?

We've chosen this focus because closed end funds (CEFs) offer our unitholders a variety of structural benefits relative to open end mutual funds. Because mutual funds have to constantly redeem units and deal with continuous unit offerings, managers of open end mutual funds must worry about a constantly changing pool of capital. In contrast, Citadel managers typically invest a defined amount raised in an IPO and can therefore put capital to work in a long-term strategy. As well, CEF managers tend to incur lower costs because they have lower asset turnover as a result of not having to accommodate capital inflows and outflows. And because CEFs are exchange listed, they are fully liquid and can be sold on any business day. Depending on the fund's charter, a closed end fund can also use leverage to enhance returns.

2. Why do some Citadel funds trade at a discount to NAV and some at a premium?

Generally, the price of a closed end fund fluctuates depending on supply and demand in the market. In simple terms, when demand exceeds supply, the market price may be at a premium to net asset value. When supply exceeds demand, the shares trade at a discount. Premiums and discounts can be influenced by a wide variety of market forces, including yield compared to competing products, investor sentiment concerning a managers's expected performance, the presence of share repurchase features, as well as fund duration. Investors look to exploit discounts in a fund's net asset value by purchasing the fund at a discount to NAV, which means they get higher yield since distributions are based on NAV. It's important to remember that discounts and premiums are only one measure of the attractiveness of any fund and in-depth analysis is needed to determine if the fund is suitable to meet an investor's needs.

3. You have a number of Funds with redemption features. Describe how these features work?

Each year, in the case of most of these Funds and quarterly in the case of one Fund, unitholders have the ability to redeem their units at Net Asset Value, less costs. This redemption feature is available annually, either in December or June or on a quarterly basis in the case of Citadel SMaRT Fund. Generally, unitholders must submit a redemption request to their advisor 20 business days prior to the redemption deadline. The prospectuses for these Funds contain specific details. These Funds do not have termination dates.

4. What happens when my closed-end fund reaches its termination date?

Some of our Funds do not have termination dates. For those Funds that do, the unitholders can vote to extend the term of the fund at a special meeting of unitholders or the fund can be wound up. If the Fund is terminated, the assets of the Fund would be sold and the proceeds less expenses and all costs and liabilities associated with winding up a fund, would be distributed to unitholders. To date, unitholders have voted to extend the termination dates of three Funds and approved the merger of other Funds with termination dates into Funds without termination dates.

5. How does Citadel's mandatory repurchase program work?

This program provides price support for our Funds. When the discount to net asset value at which the Fund's units are trading falls below 95% of NAV, we automatically repurchase units of the Fund in the open market – up to 1 ¼% of the outstanding units of the Fund each quarter to a maximum of 5% per annum. We can provide additional price support, when necessary, by filing a normal course issuer bid with the Toronto Stock Exchange. This would allow us to repurchase units, also on the open market, for cancellation – up to 10% of the outstanding units during a one year period. These features are unique to closed end funds – and not available to mutual funds.

6. I haven't received my T3 slip. How do I get one?

T3's are issued by your investment advisor and must be mailed to you by the end of March each year. If you have not received your T3 by the end of March, please contact your advisor. Like other fund companies, Citadel cannot provide this service directly to unitholders.

7. Are Citadel's management fees paid in cash or units of the funds?

Each Fund is slightly different. Currently for the majority of our Funds all management fees are paid in units of the fund. In this way, our interests and the interests of our unitholders are fully aligned.

8. Do you have any capital-protected funds?

Yes, we currently have one capital-protected fund (Citadel SMaRT Fund) and with this Fund, 70% of the original capital is protected.

9. Do you offer Direct Reinvestment Plans that allow me to automatically purchase additional units rather than taking cash distributions ?

Many of our income Funds have Direct Reinvestment Plans and we encourage you to participate in these plans, which enable you to purchase units on a monthly basis rather than receiving cash distributions. The advantages of participation are two fold: your investment returns compound over time and you take advantage of dollar cost averaging. Also since units issued under the DRIPs are issued at a weighted average trading price, the price at which units are issued is often very attractive. DRIPs can be set up by your financial advisor and are determined based on the five day weighted average price of the Fund in question.

10. I don't have a financial advisor. How do I find one?