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@pete11, I think that one of the good things about the WAM funds management is that they generally run with a healthy cash percentage in reserve.. I think that just preceding the GFC, Geoff had a very large cash balance having sold down because he saw the market as overvalued. If you read the monthly reports, I think he went to cash at the tail end of last year when shares fell sharply and was reasonably quick to re-enter when the market started to rise. He started his career with one fund in which he had most of his savings and so he managed the fund as if it was his own money (and a lot of it was). I would think that he would have instilled in his Fund managers, the Wilson philosophy, and if you listen to any of their videos of investor presentations they give the reasons for their investment decisions and show the depth of research and forthought that goes into each investment decision. Some investors are concerned about the SP lagging the NTA, but I think that an investment in WLE would be one that would let you pass the most important investment test of all; the sleep at night test. WLE doesn’t only buy the “top” stocks, but the “leaders” in WLE also refers to stocks that Wilson thinks are “leaders” in their area. In regard to solvency, one of the selling points of Wilson (and I don’t know if it was WLE or the International Fund, is that they could be completely out of stocks in 2 days. The advantage of an LIC is that the shares are held by the shareholders and can still be bought or sold by the shareholders at any time and the buying or selling of the shares is completely unrelated to the management of the fund. So that in the event of a downturn in equities, the manager can go about the business of “managing” the portfolio without the worry of having to sell shares to repay investors who wish to redeem their “units”. Don’t forget that in both good and bad times, there will always be buyers and sellers.... sellers because they either have to, or become nervous, and buyers because they have the cash reserves and see a good bargain and are thinking for the longer term. The managers of WLE are no different, and, having good cash reserves, allows them to take advantage to buy good stocks when the appropriate situation presents itself.