Ann: Letter to Shareholders - Entitlement & General Offer, page-12

The current discount of PGF is an interesting aspect to it, and I tend to agree.

PGF: 1% management fee, 15% performance, trading at a 7% discount to NTA
P25PA: 1.5% management fee, 0% performance, buy at NTA

The thinking seems to be that these new securities should help both companies trade closer to NTA. ie: if you know you can redeem for cash or convert the new securities into PGF in seven years time based on the NTA value, then they should trade closer to the NTA. Given the 7-year timeframe involved I'm not sure if that will play out or not, but it's interesting.

If PGF starts to trade closer to NTA after this plays out, then maybe P25PA will be the better buy. Maybe it's much of a muchness.

I definitely think this is a better move for existing holders than the dilutionary rights issues that LICs normally go with, where you basically need to participate or get diluted.