Represents the annual dividend yield of the companies in the portfolio grossed up for franking credits. It is based on internal forecasts and actual results may vary. It is not a forecast distribution as distributions will depend on actual dividend income received, expenses of the fund and actual number of units on issue at the time a distribution is made.
Download the PDF update (June 2026)
About the fund
The High Income Value Microcap Fund is a wholesale fund investing in high dividend paying, undervalued, ASX microcap companies.
Performance
| Period | Fund |
|---|---|
| Total since inception | 290.66% |
| Compound p.a. since inception | 9.97% |
| 12 Year Annual Compound | 8.74% |
| 10 Year Annual Compound | 8.80% |
| 5 Year Annual Compound | 6.48% |
| 3 Year Annual Compound | 7.83% |
| 1 Year | 16.06% |
| 1 Month | 1.71% |
Past performance is not indicative of future performance.
Market update and commentary
A fragile ceasefire between Iran and the United States was agreed during the month, providing a pathway towards negotiations for a more permanent truce. The announcement prompted an immediate response in crude oil markets, with Brent crude prices falling sharply as fears of a prolonged disruption to Middle Eastern oil supplies eased. Shipping traffic through the critical Strait of Hormuz subsequently resumed, with vessel transits recovering from the lows experienced during the peak of the conflict. However, the ceasefire remains fragile, with isolated hostilities late in the month once again slowing shipping activity through the Strait.
Meanwhile, OPEC+ confirmed a further production increase of approximately 180,000 barrels per day, following the sharp decline in Gulf region output during the height of the conflict. Domestically, the Reserve Bank of Australia left the cash rate unchanged at 4.35%, marking its first pause after three consecutive interest rate increases. The Board acknowledged a mixed inflation outlook, noting that while domestic economic activity continues to moderate and fiscal conditions have tightened, persistent capacity constraints across labour, goods and services markets continue to prolong a demand supply imbalance.
Microequities High Income Value Microcap Fund returned 1.71% in June; this brings the total return net of fees to 290.66% for the Fund since inception in March 2012.
It was a month of significant change for the Fund. We fully divested out of three investments that were no longer meeting the investment thesis of the investment management team. We have also added one new investment, the company is involved in the Information Technology space and is very well known to us, has a very deep and broad customer base, very high repeating revenue. We expect the business to generate +40% gain for the Fund in addition to dividend income. The divestments and new investments bring the total number of investee companies down from 39 to 37.
Despite the significant pricing dislocation across the Australian small and microcap industrial sector, the High Income Value Microcap Fund continued to perform strongly, delivering a FY26 return of 16.06% (in addition to the value of franking credits). This performance is well ahead of the Fund's long term compound annual return of approximately 10% since inception. The High Income Value Microcap Fund continues to pay monthly cash distributions to investors and has never missed a monthly distribution in its 14 year history.
Portfolio breakdown
Sector breakdown
Market capitalisation
Percentages are of fund net asset value and may not sum to exactly 100% due to rounding.
Portfolio
Important information: This information is not intended to be financial advice. Past performance is not indicative of future performance. Microequities Asset Management Pty Ltd is a corporate authorised representative, number 462438, as appointed by Microequities Asset Management Group Limited holder of AFSL number 287526. Application for units in the Fund is limited to investors that are wholesale or sophisticated investors within the meaning of Section 761G(7) and 761GA(7) of the Corporations Act 2001.