You have certainly spent some time on justifying your view this...

You have certainly spent some time on justifying your view this should be appreciated by all.

i am unsure why you are comparing the performance of WAR versus an index fund - you couldn't get 2 more different types of investments.

i would argue you do not hold WAR expecting it to outperform the general market or an index fund as WAR does not carry as much downside risk so you should not expect the same upside return. You hold it for it's "risk" adjusted return.

I would also point out the underperformance is the opportunity. i don't understand why people invest in these LIC's on the IPO.
WIL listed in around 1999 and it traded at a discount immediately - nothing has changed.

I invest at these prices looking for an investment that will on average provide an average of 6 to 7% as a grossed up yield and will provide around 2 to 3% a year in capital growth with limited downside.

In summary nice upside potential for the downside risk.