L1 Long Short Fund Sets DRP Price at AUD 3.59 for Upcoming Dividend

Dividend Update and Context

L1 Long Short Fund Limited (ASX – LSF) has provided an update to its previous dividend announcement, revealing key details about its upcoming ordinary dividend and the associated Dividend Reinvestment Plan (DRP). The fund declared a fully franked dividend of AUD 0.035 per ordinary share, reflecting its performance for the quarter ending 30 September 2025. This dividend is scheduled for payment on 5 December 2025, with a record date of 18 November 2025.

Dividend Reinvestment Plan Details

Significantly, L1 Long Short Fund has now disclosed the DRP price, set at AUD 3.59 per share. This price is calculated using a five-day volume weighted average price (VWAP) methodology, a common approach that smooths out market volatility to determine a fair reinvestment price. The DRP is offered with no discount, and participation is optional, defaulting to cash payment if shareholders do not elect to participate.

The DRP shares will be newly issued and will rank equally with existing shares from the date of issue, ensuring no preferential treatment. There are no minimum or maximum participation limits, making the plan accessible to all shareholders. This approach supports shareholder flexibility while potentially aiding the fund’s capital management strategy by retaining cash within the business.

Implications for Investors

For investors, the fully franked nature of the dividend means they can benefit from franking credits, which may reduce their tax liabilities depending on individual circumstances. The absence of a discount on the DRP price suggests the fund is confident in its current valuation and market conditions. However, uptake of the DRP will be a key factor to watch, as it influences both shareholder returns and the fund’s capital structure through potential share dilution.

Overall, this update provides clarity on the fund’s distribution policy and reinvestment options, reinforcing L1 Long Short Fund’s commitment to transparent communication with its investors. The timing and terms of the dividend and DRP align with standard market practices, offering shareholders a predictable income stream alongside the option to compound their investment.