The trust has seen performance improve markedly since the appointment of Tony DeSpirito and the overhaul of the investment process which began in October 2014. Over three years to the end of December 2017 the trust is up 52.5% in NAV total return terms, outperforming the Russell 1000 Value index (47.9%) and keeping pace with the average trust in the AIC North America sector. Prior to Tony’s appointment the trust was an underperformer and the discrete figures tell the story. The trust underperformed the index in 2012, 2013 and 2014, hit by a combination of a style which didn’t suit the market and a focus on analyst-led research which, without the rigour of a quant screen, resulted in a number of missed opportunities. Since then the trust has fared better, outperforming the index in 2015 and then keeping pace with it in 2016. The trust produced almost double the return in NAV terms of the Russell 1000 Value index in 2017, but share price performance was hampered by the discount which widened out since the start of 2017. The trust’s largest overweight, toward financials, is yet to make a meaningful contribution toward the trust’s performance but the managers remain positive on the outlook as inflation gathers pace and interest rates become to come along more often. The positive effect of an inflationary environment ahead for financials is compounded by the fact that stress tests and higher capital ratios have ultimately led to banks being easier to judge from a risk perspective than they have been in the past, and in many cases more well insulated by capital buffers. They are also positive on the outlook under Donald Trump’s lighter regulatory touch. The biggest positive contributions have come from the trust’s healthcare and energy positions and this includes their exposure to companies outside the US, like AstraZeneca. It is interesting to note that the managers have allowed a small cash position (5%) to build up which they say, rather than reflecting a bearish position, is an opportunistic cash pile which will allow them to take advantage of any opportunities that arise from the quantitative tapering that is now underway