Ann: Appendix 3Y Change in Directors Interest - G Wilson, page-9

This is the first LIC I've bought at float for many years. Most LICS drift in price lower than NTA for the first year or so as the initial float promotion wears off in investor's minds. This has been my experience over my last 20+ years investing in LICS and the outcome of some academic studies in the US than cover hundreds of LIC structured fund managers.

However, I have made an exception here because of one main reason. WAR, because of its size as a shareholder (and GW's reputation) has the ability to convert a NTA discount to close to NTA quite quickly. WAR will probably become the largest shareholder in its investments and hence have a lot of pull in target's operation.

As an example, I think we will see the outcome of the TGG transaction in the next NTA announcement. I assume WAR will take the cash option which will result in a profit being booked and, through the dividend component from TGG, some nice franking credits to distribute to WAR shareholders even if the NTA of other investments drops before the end of the financial year.

Time will tell.