It's an interesting DRP for a number of reasons though.
The real benefit would be if the SP ever reaches a premium to NTA (doubtful given the crap performance to date).
According to their documentation, in such an event investors participating in the DRP will acquire new shares at NAV.
Imagine the effect such a policy would have on LICs like WAM which trade at a circa 20% premium. Everyone would sign up for the DRP plan! Instant 20% gain.
However, it is more than likely in the event the SP ever does reach a significant premium the DRP would either be amended or suspended.
VG1 Price at posting:
$2.23 Sentiment: None Disclosure: Not Held
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