The Company’s Dividend Re-Investment Scheme (“DRIS”) has proved extremely effective in allowing Shareholders the opportunity to re-invest dividends in the Company and this has led to a regular and consistent re-investment by many Shareholders. Currently DRIS Shares are issued at a discount to the last reported net asset value, which provides an advantage to those Shareholders in the DRIS and slightly dilutes the value of those Shareholders not in the DRIS. In addition, all other generalist VCTs that operate a DRIS, or equivalent, issue DRIS Shares at the net asset value per ordinary share. The Directors have therefore concluded that it is appropriate for the Company to issue future DRIS Shares at the net asset value per ordinary share and notice of this change is the circular below. The BSC2 DRIS provides investors a tax efficient way of building up their shareholding as an alternative to receiving dividends in cash.
* as adjusted for the relevant dividend, if this has not already been recognised.
The chart below shows the returns received by investors over the last 3 and 5 years to 30 June 2020 based on an initial investment of £10,000. In each case the first bar shows the return of an investor receiving cash dividends and the second bar an investor choosing to re-invest their dividends under the terms of the DRIS, thereby receiving additional shares, additional dividends on those shares and the associated tax reliefs.