re: DRP, I would say no as the SP should drop a commensurate...

re: DRP, I would say no as the SP should drop a commensurate amount after a distribution. So if the dividend is 4c then the SP should drop 4c after it goes ex-dividend?

So I think what Im missing is that if they make a capital gain and re-invest it, that is increasing their FUM and that money isnt paid as a dividend so the SP should appreciate.

I was getting confused with the fact LITs have to distribute all gains, as @lordsmasher pointed out