The Citadel Value Fund is a SICAV based in Luxembourg, one of Europe's principal fund centres. It was established on January 3rd, 2002 and began trading on February 11th, 2002.
A SICAV or UCITS as it is called outside Luxembourg is an open-ended investment fund. In an open-ended fund, investors can enter or leave on an on-going basis (in the Fund's case every 2 weeks) and the size of the Fund adjusts accordingly with new shares being issued, or existing shares withdrawn. As investors enter the Fund, they purchase shares at the same Net Asset Value per share as the share is currently valued at. This puts new and existing shareholders on exactly the same footing.
The Citadel Value Fund has a permit from, and falls under the regulation of the Luxembourg regulatory authority, Commission de Surveillance du Secteur Financier (CSSF). As such it must comply with numerous requirements, many of which are described in the Fund's prospectus. The legislation under which the Fund operates is based on a European Union directive which gives the Fund the possibility - subject to local registrations - of being freely marketed throughout the EU. In addition to Luxembourg, the Citadel Value Fund is currently registered with the Autoriteit Financiele Markten (AFM) allowing it to be sold to the general public in the Netherlands.
|Custodian:||Quintet Private Bank (Europe) S.A. (formerly known as KBL European Private Bankers S.A.)|
||Kredietrust Luxembourg S.A., sub-delegated to European Fund Administration S.A.|
|Auditor:||BDO Audit S.A.|
Stock market listing
Class P shares of the Citadel Value Fund are listed on the Luxembourg Euro MTF Exchange.
The fee structure for the Fund’s class P shares is composed of a modest fixed fee, plus an incentive fee based on the absolute returns received by shareholders. We believe that the level of fees should primarily be tied to what investors in the Fund earn, and not to how successful the Fund is in accumulating assets. Therefore, unlike the traditional mutual fund which usually charges between 1% and 1.5% of assets under management as an annual management fee, irrespective of performance, the Citadel Value Fund's management fee is a minimal 0.75% per year.
The incentive fee is based on two variables; the hurdle rate and the Fund's absolute performance in a particular year. The hurdle rate is defined as the average 1-year EURIBOR rate (a benchmark European interest rate, basically the 'risk-free' rate), with a minimum rate of 4%. That means that if the average annual Euribor rate was 2%, then the first 4% of the Fund's performance in that year is free from an incentive fee. Naturally, if the annual performance is negative there is no incentive fee. Above the hurdle rate, 20% of the Fund's performance will accrue as an incentive fee.
Assuming an EURIBOR rate of 4%, and an annual performance of about 7% (i.e. at the higher end of the 6-7% long-term historical average for equities) the total fees charged (management fee + incentive fee) will approximate that of the 'average' equity fund (about 1.35%). Only by performing better than stocks have historically done, will the total fees be higher. Should the Fund's performance be worse than this historical average, then its fees will be considerably less than those of the 'average' equity fund.
The incentive fee is subject to a high-watermark restriction. An incentive fee will only be charged if the NAV per share at the end of the Fund's financial year is higher than at the end of the three preceding years. With this restriction the Fund avoids charging its investors an incentive fee when its NAV per share recovers from a major stock market correction.
|Management fee:||0.75% of the Net Asset Value (NAV)|
|Incentive fee:||20% of all gains exceeding the hurdle rate (defined as the 1-year EURIBOR rate, with a minimum of 4%)|
|High watermark:||Yes, with a 3-year look-back (end of financial year)|
Buy and sell spreads
Because all shares of the Citadel Value Fund are issued or redeemed directly by the Fund, investors do not pay a spread. The price for subscriptions and redemptions is exactly the same as the NAV per share.
|ISIN code class 'P' shares:||LU0141953439|
|Bloomberg code:||CITVALU LX|
Frequently Asked Questions
How can I change my registered address ?
To change your address, please write a short letter with your request and include your name, account number (to be found on your confirmation note or holding statement), and your old and new addresses. Send the letter to:
|European Fund Administration S.A.|
|attn: Register Dept. - Shareholder Services|
|P.O. Box 1725|
What is the Fund's benchmark?
The Fund doesn't attempt in any way to track or even approximate the composition of any geographic or sector index. In the long-term the Fund should outperform stocks generally if it is to add value to its shareholders. We believe that an appropriate index to use as a comparison is the MSCI World Index, including net dividends and denominated in Euro, due to its breadth and global scope.
Does the Citadel Value Fund pay dividends?
No. All dividends that the Fund receives are retained and reinvested for its shareholders.
How do I receive a holding statement?
If you have invested in Citadel Value Fund through a bank or broker, your investment will be added to the holding statement of your bank/broker.
If you have invested directly in the Fund, your investment is administered by European Fund Administration. By default they will send you a holding statement by postal mail at the beginning of each year. Should you wish to receive your holding statement by email and/or more frequently, please tick these options in the Information Form that you will have to complete when subscribing directly. You can always contact EFA to receive an up-to-date holding statement.
What was the NAV at the end of the year?
Below you can find the end-of-year history of the NAV per share (class P):
|December 31st 2019:||EUR 208.77|
|December 31st 2018:||EUR 189.66|
|December 31st 2017:||EUR 215.83|
|December 31st 2016:||EUR 201.03|
|December 31st 2015:||EUR 201.21|
|December 31st 2014:||EUR 179.39|
|December 31st 2013:||EUR 162.98|
|December 31st 2012:||EUR 141.66|
|December 31st 2011:||EUR 125.70|
|December 31st 2010:||EUR 134.97|
|December 31st 2009:||EUR 119.52|
|December 31st 2008:||EUR 87.76|
|December 31st 2007:||EUR 136.76|
|December 31st 2006:||EUR 137.40|
|December 31st 2005:||EUR 125.20|
|December 31st 2004:||EUR 111.78|
|December 31st 2003:||EUR 95.41|
|December 31st 2002:||EUR 81.58|
What does it cost to invest in the Citadel Value Fund?
That depends on how an investor chooses to invest. The Fund itself does not charge an upfront sales commission or subscription fee. Investors who subscribe directly by sending a share subscription form to the Fund do not have any significant costs. The only costs which are possibly incurred are bank charges to transfer money from their country of residence to the Fund's account in Luxembourg, although money transfers within the EU are usually free of charge. Investors who buy shares in the Fund through a bank will be charged the bank's standard transaction fees. Please also see INVEST for further details.
What information do I need to subscribe via a bank or broker?
Generally, the name of the fund (Citadel Value Fund SICAV), and the Fund's ISIN code (LU0141953439 for the P class of shares) will suffice. Should your bank or broker require any further information it may contact the Fund's registrar, the European Fund Administration at +3188.8.131.52.261. Please also see INVEST for further details
Where can I find the current share price of the Citadel Value Fund?
The current share price, known as the NAV per share, can be found on the Fund's website (the NAV page). It is also published on the site of the Luxembourg Stock Exchange www.bourse.lu and is generally available on Bloomberg and at other financial data providers. It is published on the first business day of each month and mid-month.
How can I stay updated on recent developments at the Fund?
New information is posted regularly on the Fund's website. Investors may also request that they be placed on the Fund's e-mail list. Please see the CONTACT section for details. Shareholders who hold registered shares in their own name (i.e. not through a bank or brokerage account) will occasionally receive information in the mail including holding statements.
What is the minimum amount that can be invested?
EUR 10,000 per subscription (P class).
Disclaimer: An investment in the Fund carries with it a degree of risk. The value of your investment may go down as well as up, and you could lose money on your investment. Past performance provides no guarantee for the future. Investors should read the Fund’s prospectus, annual report and Key Investor Information Document (KIID) before deciding whether to invest.
Voting Policy: Under UCITS IV legislation all Luxembourg SICAVS are required to have a formal voting policy and publish this on their websites. The following is Citadel’s policy:
An integral part of the Fund’s investment strategy is to closely monitor the business, operational and financial status of companies held in the portfolio. This includes reviewing proposals which are put to a shareholder vote. In most cases the matters submitted to a vote are routine in nature and are not deemed to be material to the value of the Fund’s investment. In such cases any potential benefit to be gained from exercising its voting rights is outweighed by the time, hassle and costs of doing so. In these cases the Fund makes no use of its rights. In cases where the result of a shareholder vote could lead to a material change in the value of a Fund’s investment in a security, and where furthermore the Fund possesses significant voting rights which could influence the final result, the Fund does exercises its rights. The Fund naturally exercises its voting rights solely on the basis of what is determined to be in the best interests of the Fund and its shareholders.
Conflict of interest policy: As required by UCITS V legislation Citadel has created a formal conflict of interest policy. Shareholders may request a copy at email@example.com.
Complaints procedure: All Luxembourg SICAVs are required to have a formal complaints procedure and publish it on their website. Any formal complaints may be addressed to Kredietrust Luxembourg, the Management Company of Citadel Value Fund. This can be done by sending an email to firstname.lastname@example.org or writing a letter to Citadel Value Fund, 88, Grand Rue, L-1660 Luxembourg. The full complaints procedure can be requested at email@example.com.
Privacy Statement: Respecting and protecting investor privacy has always been vital to our business. You can read the full Privacy Statement here. Amongst others, you always have the right to request an overview of your personal data or unsubscribe from the email distribution list for (periodic) news updates. In case you have any questions, please email us at firstname.lastname@example.org
Class X Shares
The Fund has a separate class of shares for large investors, the X class. This class is available to investors making and holding a minimum investment of EUR 1m in the Fund. The minimum subsequent investment is EUR 10,000.
ISIN code (class X shares): LU0939062922
KIID class X shares - English
KIID class X shares - Nederlands
NAV per class X share as of June 15th, 2020: EUR 186.67
The next NAV publication will be on July 1st, 2020.