ICG Enterprise aims to deliver better than equity market growth over the cycle, through investing in private unlisted companies. They prefer more defensive and less volatile businesses, and have no venture capital exposure. The trust appointed ICG as manager two years ago, and the team report that the move has had a beneficial impact on their ability to deploy capital and better manage the balance between risk and reward. Almost a third of all capital deployed or committed in the last two years has been to ICG managed strategies or investments. ICG Enterprise’s portfolio balances concentration with diversification. Its flexible mandate allow the team to enhance returns through proactive taking overweight positions in compelling investment opportunities. The top 15 companies make up 32% of the portfolio – which is a similar degree of concentration that one might find in a typical equity fund. 2017 has been a record period for realisations, as well as selective investments. The recent past has been very strong for the trust, with NAV performance bettering the FTSE All Share Index in each of the last four years. Over the past year performance has been driven by a record level of distributions from the portfolio, with sales completed at an aggregate 35% uplift to the most recent valuation and 2.4x original cost. The team believe that in the current environment, a selective approach is key, and are focussing on high quality defensive business. The move to ICG has helped deploy capital, but such has been the strength of realisations that cash at the end of December stood at 11% of NAV. Over the cycle, the team aim to be fully invested. The board made an explicit target to pay a dividend of 20p per share this year, or a 2.5% yield based on the current share price. In January, the board announced the intention to grow the annual dividend progressively. In addition the trust will move to quarterly dividend payments. ICG Enterprise currently trades at a discount of c 14%, having narrowed by c. three percentage points since we last wrote on the trust around six months ago.