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 (October 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 | 285.45% |
| Compound p.a. since inception | 9.64% |
| 12 Year Annual Compound | 8.11% |
| 10 Year Annual Compound | 7.10% |
| 5 Year Annual Compound | 4.43% |
| 3 Year Annual Compound | 8.04% |
| 1 Year | -2.07% |
| 1 Month | -4.25% |
Past performance is not indicative of future performance.
Market update and commentary
Global financial markets experienced another volatile month in October, although US government bond yields provided some relief. The US 10 year Treasury yield retreated from approximately 5.3% to below 5.0%, reversing part of September's sharp increase. Nevertheless, yields remain elevated, reflecting persistent inflationary pressures, substantial US Government borrowing requirements and increasing competition for capital, particularly from the extraordinary investment being directed towards artificial intelligence infrastructure. Additionally, the conflict in the Middle East remains fluid and open ended. In Australia, the latest inflation data reinforced our previously stated view of two further RBA interest rate increases, with annual headline inflation accelerating to 4.3% and trimmed mean inflation reaching 3.6%. We maintain our expectation of at least two rate rises during this tightening cycle, although we believe the impact of higher borrowing costs is already becoming evident in household spending and broader economic activity. This emerging slowdown should provide the RBA with reason to exercise caution in pursuing further monetary tightening (beyond the two rate rises).
Microequities High Income Value Microcap Fund returned -4.25% in October; this brings the total return net of fees to 285.45% for the Fund since inception in March 2012.
We are pleased to announce that, following an increase in the portfolio’s forecast dividend yield, we will be increasing our monthly cash distribution from 0.5 cents per unit to 0.6 cents per unit. October marked an unusually active month for the High Income Value Microcap Fund in terms of asset acquisitions and disposals. The investment management team fully sold its remaining stake in Cash Converters International (ASX:CCV). Cash Converters was a long-held investment in the Fund, but the team had formed the view that its capital growth runway was relatively limited compared with other investment opportunities and consequently decided to fully divest. The second divestment was Paragon Care (ASX:PGC), which has not met our investment thesis, with poor operational and financial performance. The proceeds from these sales were reinvested into new investments. The first is a very high-quality, dominant marketplace business that is well known to the investment management team. At current share prices, the company presents an excellent capital growth opportunity while also providing an acceptable dividend yield. The second addition to the Fund is a growing financial services business with diversified revenue streams and increasing market share. Following a share price decline of more than 50% over the past 12 months, we are acquiring the business at circa 8 times earnings and a grossed-up dividend yield of circa 9%.
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.