How does Citadels 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 % 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.
