Download the PDF update (May 2026)
About the fund
The Microequities Value Income Fund (“VIF”) (ARSN 629 674 175) is a retail fund investing in high dividend paying, undervalued, ASX smaller companies. This fund is appropriate for investors with “High” risk and return profiles. A suitable investor for this fund is prepared to accept high risk in the pursuit of capital growth with a medium to long investment timeframe. Investors should refer to the TMD for further information.
Performance
| Period | Fund |
|---|---|
| Compound p.a. since inception | 11.54% |
| Total since inception | 122.76% |
| 7 Year Annual Compound | 10.70% |
| 5 Year Annual Compound | 9.20% |
| 3 Year Compound Annual | 11.16% |
| 1 Year | 16.45% |
| 1 Month | 1.91% |
Past performance is not indicative of future performance.
Value of $100,000 invested at inception
- Fund: $100,000 to $222,760
Market update and commentary
Australia’s headline inflation rate fell from 4.6% to 4.2% for the month of April. The fall in the headline rate was driven by the cut in fuel excise on April 1st. Trimmed inflation, rose by 10 bps to 3.4% from a month earlier. The CPI number came in a month which saw weakness in the labour market with the unemployment rising to 4.5% in April. We expect the RBA to hold rates at its June board meeting, as the central bank will want to see the effects of its recent rates rise permeate through the economy before taking any further action. The US-Iran conflict continued throughout the month with a fragile ceasefire remaining in place. The oil market has largely discounted a worst-case supply disruption, and oil prices remain relatively subdued despite the disruption to global supply chains. Part of the reason for the modest increase in prices is the reliance on oil inventories to smooth supply. Inventories will not last indefinitely and therefore the US administration has a limited timeframe to reopen the Strait of Hormuz. Despite the geopolitical backdrop, the US economy remains resilient, with the April jobs report showing the economy added 115,000 non-farm jobs. Whilst the Federal Reserve remains dovish, divisions are emerging within the committee, with four of the twelve members dissenting from the decision to hold rates and signalling a growing easing bias.
Microequities Value Income Fund returned +1.91% net of fees in May; this brings the total return net of fees to 122.76% for the Fund since inception in February 2019.
May saw some of our portfolio companies provide full year trading updates.
Our consumer services company provided an update at its AGM with Q1 revenue up over 40%, EBITDA up over 35% and NPAT up over 34%. Enrolment growth to date remains strong, despite changes to enrolment rules in the industry. The current share price implies c.6x PE for CY26 and compared to similar private assets remains at a steep discount. Share price improved by 21% during the month.
Our largest weighted position in the Fund, in the wholesale electrical products distribution sector provided a trading update with EBIT and EBITDA earnings expected to rise 19% and 18% respectively for FY26, with organic growth excluding acquisitions of c.10%. We think these are strong results and the company continues to be leveraged to the rising capex in data centres and electrification. However, despite the recent share price improvement, we note it still trades at a discount to other listed peers.
One of our heavily weighted investments in the financial services sector provided a trading update noting growth in its funds under management and positive inflows for Q1 of 2026. A number of positive product developments are in the pipeline, and the company is seeing strong interest from offshore investors in its investment products.
Portfolio breakdown
Sector breakdown
Market capitalisation
Percentages are of fund net asset value and may not sum to exactly 100% due to rounding.
Portfolio
Disclaimer: This communication has been prepared and issued by Microequities Asset Management Pty Ltd ABN 96 134 984 768 AFS Licence No 287 526, as investment manager of the Microequities Value Income Fund ARSN 629 674 175. The Trust Company (RE Services) Limited (ACN 003 278 831) (AFSL 235150) is the responsible entity. This communication contains general information only and does not take into account investment objectives, financial situation or needs of any particular individual or entity. It does not constitute financial, tax or legal advice, nor is it an offer, invitation or recommendation to subscribe or purchase a unit in the Fund or any other financial product. Before acting on any information contained in this communication, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs. While every effort has been made to ensure the information in this communication is accurate; its accuracy, reliability or completeness is not guaranteed and none of The Trust Company (RE Services) Limited (ACN 003 278 831), Microequities Asset Management Pty Ltd or any of their related entities or their respective directors or officers are liable to you in respect of this communication. A Product Disclosure Statement (PDS) issued in June 2024 is available for the Fund on the following website: http://microequities.com.au/valueincomefund You should obtain the PDS for the Fund and consider the risks and disclosures for your circumstances before deciding whether to acquire, or continue to hold, an interest in the Fund. Initial Applications for units in the Fund can only be made pursuant to the application form attached to the PDS. Past performance is not a reliable indicator of future performance. The PDS and target market determination can be obtained by calling 02 9009 2900 or visiting our website https://microequities.com.au/our-funds/value-income-fund/