improving, page-6

i dont know about the tax side of it -inc for foreign investors- but from a micro's perspective you give the 3% discount (to prevailing vwap 5 day share price) to keep the money in the fund pool

in this instance, they've performed well. whether they do going forward we will see

problem is theyve not added that to the nta. why? cap raisings at deep discounts.

so they sent back 5c, which on the fund size is quite a few million.

so if say 25% of shareholders offer to say hey ctn keep the money working for ya, then we're ahead

i like dividends personally, i need the cash at the moment. do i want the 3%, hmm, 3 is nice but can i time it on the market to get that 3% discount? we're splitting hairs arent we. 30%, 27%. it was 40% last month. throw in the spread that 3% is not so critical, but having the money working in the market is more useful for the manager.

i guess they have to sell sahres to fund the dividends too, so is less selling for them better for the fund too.

back to yoru question, the div being dilutive or not. i reckon the marekt response is the key. they offer 5c and it goes down 4. thats a 20% saving, but they are at 30-odd, so yeah, is dilutive. but then theres balance sheet calue of franking credits as well. so is 5c really 6.5c worth of NTA they distribute perhaps? maybe. and we only went down 4c say. its a tough calculation

yeah managers want fund size as big as possible for fees. in this instance they need it also for scale in micro space

also ALL investors can tick the drp box, so we cant say its unfair to non drp users.

as for big holders well they bought eyes wide open. drp is in the initial prospectus isn't it? its pretty standard a 2-5% discount isn't it?

you are right on the gamble- but thats the same with every share on the ASX eh.

long only but can go to cash if required i believe. most all managers can use futures to get there. in this instance i'd expect they can because we dont want them selling $30m worth of shares if they get nervous, not micros. BHP yeah fine, not micros. so youc an sell SPI futures to get to an equivilent cash position. technically thats short. i dont know if they would try that on individual stocks. too risky, not enough liquidity to risk getting a squeeze.

long term hold/ long term buy
DYOR