When trading at a discount to NTA, they can choose -
1. Invest cash to potentially make a return, raising NTA.
2. Use the cash to buy back shares for a guaranteed increase in NTA.
A buy back seems like a great option when trading at a discount to NTA, but I assume there's a limit to how much can realistically be bought back, without driving up the SP so much that the discount no longer exists. Maybe just a couple % of the outstanding shares per year.
So their core business is to be good at #1, but #2 should be maximised where possible.
Ann: Daily share buy-back notice - Appendix 3E, page-3
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