Ann: Becoming a substantial holder from WAM, page-12

Flash, it depends what you mean by dilution. If you mean the market price then yes, it dragged it down.

If you mean dilution of assets (NTA), then no it wasn't. $1.90 is above the NTA so everyone who bought at $1.90 give a free boost to existing shareholder's assets. Thanks everyone, I appreciate your contribution to my NTA (and to other existing shareholders).

I always value LICs at their NTA and try to buy good ones below the NTA. NTA is long term and market price is very short term.

Having said that, these type of issues happen every now and again. I sell at announcement and buy in the SPP. For example, I sold $15K WAM the day of the announcement and applied for $15K at $1.90, paying the day before the due date in case the market crashed. That's not new money though. I just added a few hundred free shares (minus capital gains). Similarly, I never participate in DRP when its above NTA.

And, even though most LIC's are at premium to NTA, there are some good cheap ones out there.