Aberforth Smaller Companies Trust (ASL) owns a portfolio of cheap companies which the managers expect to outperform their more expensive peers. ASL has been team-managed since it was launched in 1990, and has outperformed the Numis Smaller Companies ex IT Index significantly since then. In more recent years the value style has been out of favour, and ASL has struggled relative to its growth-oriented peer group. As we discuss in the Performance section, the end of last year saw an outstanding quarter of outperformance which was brought to an end by the unforeseeable event of the pandemic. The resulting market decline now sees ASL on its lowest month-end portfolio valuation since March 2009, which subsequently led to strong returns over the following five years. The managers are investing in their own portfolios and preparing to build up gearing to take advantage of low valuations in the companies most likely to prosper through the other side of the current crisis. Aside from total-return potential, ASL is also in a strong position with regards to the dividend. Having fallen onto an 11% discount, the historical yield is 3.7%. Although the managers say that they expect to see 50–60% dividend cuts on the market and on their portfolio in 2020, ASL has 2.4 times last year’s dividend in reserve. This means the board has the firepower to maintain or grow the dividend should it wish to. Following the coronavirus crash, the managers have been through the portfolio with a fine-tooth comb. They have made few changes to their portfolio as a result, remaining confident in most of their business models.