SPP Harvester: Recycling your capital

16 February 2021 @ 12:00am SPP Harvester

In each Share Purchase Plan (SPP), investors can apply for a maximum of $30,000.  So, if SPP Harvester has given access to 41 SPPs, then you needed 41 x $30,000 = $1.2 million to apply for all of them, right?

Not quite.  As soon as the SPP is issued, we sell the shares and return the money to your account, so it can be used again to harvest the discount from the next SPP.  This means your same funds can be used over and over again.

Generally, each SPP ties up funds for about 25 days.  So, if each SPP nicely waited until the next one, then investors would have used the same $30,000 35 times over.

Sometimes there’s a few SPPs at once.  Sometimes there’s none.  To account for this, and make sure you have a diversified spread, SPP Harvester simply divides your cash balance by the number of open SPPs at the time and applies for an equal amount in each one allowing SPP Harvesters to access all of the SPPs.