vanguard australia share index vs lics, page-32

I don't mean to be a pedant, but CHO's annual offering of shares to shareholders is in fact a share purchase plan (SPP) rather than a rights issue. One of the main differences is that unlike a rights issue, a shareholder's entitlement to purchase shares in the SPP is not pro-rated to the size of his/her holding. That is, regardless of whether you have 100 shares or 1 million shares, you will still be able to purchase $5000 worth of stock throgh each year's SPP. This, coupled with the fact that the SPP sometimes allows us to purchase at a discount to NTA, favours CHO's smaller shareholders over the larger ones.

The same can be said about the other LICs offering SPPs, including MLT and ARG.