Glossary
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The independent auditor conducts an annual review of the Fund’s financial statements and operational procedures and issues an audit opinion in compliance with Luxembourg’s legal and regulatory standards. This role provides assurance to investors that the Fund’s financial statements and performance accurately represent a fair and true view. The annual review and opinion of the auditor can be read in the Fund’s annual report. The auditor is appointed by the annual general meeting of shareholders, ensuring transparency and accountability. The Luxembourg branch of BDO Audit serves as the independent auditor for the Citadel Value Fund.
In finance, Beta is a measure of a financial asset’s sensitivity to movements in the overall market. It measures, for example, how a stock’s price tends to change on average compared to the change in the overall market.
The Commission de Surveillance du Secteur Financier (CSSF) is the financial markets regulatory authority in Luxembourg. Since 2002, Citadel Value Fund is regulated by and falls under the supervision of the CSSF.
Quintet Private Bank (Europe) S.A. acts as depository of the assets of the Citadel Value Fund. This means that Citadel’s investments are entrusted to Quintet in a segregated account for safekeeping. Moreover, Quintet manages the Fund’s principal bank accounts and provides several bank services related to fund management, such as settling trades, collecting dividend income, and processing corporate actions.
The distributor of the Fund is responsible for all aspects of the marketing of the Fund to investors and is the first point of contact for potential investors who would like to become a Citadel shareholder. Pure Capital S.A. is the Citadel’s global distributor.
Dividend yield is the ratio of the annual dividend divided by the stock price. It measures how much cash income is received from an investment.
EBIT is a financial accounting acronym for operating profit. It stands for earnings before interest and taxes. EBITDA equals EBIT before depreciation and amortization. Hence, EBITDA is operating profit before subtracting a charge for the cost of prior investments in fixed assets.
A company’s Enterprise Value is the total value that needs to be paid to acquire the company. This is calculated by taking the current market capitalisation (i.e., the Equity Value) plus the current outstanding interest-bearing debt, minus the cash, cash equivalents and financial fixed assets currently on the balance sheet.
The Environmental, Social and Governance (“ESG”) regulatory framework, which takes into account how companies (should) act on a broad range of environmental, social and governance themes. The Fund’s ESG Policy can be found here.
Equity is synonymous with shares or share capital in a company. An equity investor is an investor who (for example, indirectly through a fund like Citadel Value Fund) buys shares in a company and becomes a part owner of this company.
Financial regulation is a form of regulation or supervision, which subjects financial institutions such as the Citadel Value Fund to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. Find out more about Citadel Value Fund’s regulated status here.
Free Cash Flow is a metric that measures the cash a company generates from operations, after accounting for (maintenance) capital expenditure and working capital movements. It indicates how much cash is available to the company in a particular period after covering all expenses and investments required for continuing operations.
Free Cash Flow yield measures a company’s Free Cash Flow as a percentage of its Enterprise Value.
The Fund’s administrative, registrar and transfer agent functions are delegated to UI EFA (formerly European Fund Administration S.A.). The Fund administrator is responsible for keeping the shareholders register, processing the transfer (subscriptions and redemptions) of the Fund’s shares, the bookkeeping of the Fund and the calculation of the NAV.
The value of the underlying company or business activities, estimated based on fundamental financial analysis.
The investment advisor provides assistance and investment advice services to the Fund regarding the investment decisions, based on thorough fundamental financial analysis. Citadel Value Fund’s investment advisor is D&F Financial Services B.V. and is specialised in advising on deep value investing.
International Securities Identification Number serves as a uniform identification code of a traded security. Please check out the Invest section for the ISIN codes of Citadel Value Fund.
A Key Information Document (KID) is a legally required document aimed at retail investors that provides information about potential gains and losses, the risks and costs of an investment product.
The management company plays a key role in a fund organisation. Pure Capital S.A. is the management company of Citadel Value Fund. Pure Capital acts as the domiciliary agent of the Fund, and is also responsible for administration, risk management, managing the investments and global distribution. Some of these responsibilities are outsourced to third party service providers.
The essence of a margin of safety in investing lies in purchasing stocks well below their estimated intrinsic value to protect against permanent capital loss while increasing the potential for attractive returns.
The Net Asset Value (NAV) of an investment fund is calculated by adding the current market value of all investments and other assets, such as cash and dividend receivables, and subtracting any liabilities, such as payables. The management fees, custodian fees, and any other costs that are charged to the Fund in accordance with the Prospectus are all included in the calculation of the Net Asset Value and are consequently reflected in the Fund’s performance. Typically calculated on a per share basis, the Fund’s NAV is the price at which investors can purchase and sell shares in the Fund twice a month. You can click here to view the NAV of Citadel Value Fund.
In an open-ended fund, such as Citadel Value Fund, investors can enter or leave on an ongoing basis 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.
A Prospectus is a legal disclosure document that offers comprehensive information about an investment offering to the public, such as Citadel Value Fund. It is required to be filed with the local financial regulator, in the case of Citadel, the CSSF, which is the financial regulator in Luxembourg. Approval of a Prospectus is a prerequisite for marketing a financial product. Prospectuses are regularly updated to comply with new rules and regulations.
The Sustainable Finance Disclosure Regulation (“SFDR”) refers to the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector. The regulation concerns whether or not a fund promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics as defined by Article 8 of the SFDR Regulation, or whether or not it has sustainable investment objectives as defined by Article 9 of the SFDR Regulation. Citadel Value Fund qualifies as a financial product under Article 6 of the SFDR (see ESG Policy).
Société d’Investissement à Capital Variable, an open-ended investment fund with variable capital established under European Law.
Undertakings for Collective Investment in Transferable Securities, which is the European terminology for a regulated open-ended investment fund. A SICAV in Luxembourg is one of the possible UCITS fund structures.
An equity investment strategy that can provide peace of mind is value investing. Its basic tenets can be summarized as (1) know the value of your investment, and (2) ensure a margin of safety when making an investment.
Volatility is a statistical measure of the average degree of variation or fluctuation in the price of a financial instrument, such as a stock.