Download the PDF update (October 2026)
About the fund
Fund Manager: Declan McLenaghan (PM) The Value Earth Fund is a wholesale fund investing in a portfolio of undervalued global companies that meet our minimum ESG criteria. Companies are located in developed economies around the world.
Performance
| Period | Fund | Benchmark** |
|---|---|---|
| Compound since inception | 2.76% | 12.61% |
| Total since inception* | 6.57% | 31.93% |
| 12 Months | -8.80% | 6.11% |
| 6 Months | -2.42% | 3.39% |
| 1 Month | -6.08% | -0.78% |
*Inception date 1 July 2024. **MSCI World Small Cap in Australian Dollars
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).
Many of our portfolio companies provided updates this month, with results decidedly mixed. Prysmian SpA (BIT:PRY), our Italian cabling company, delivered strong results, with organic revenue growth of 13.1%, adjusted EBITDA up 32.1%, and a strong outlook for 2027. The company continues to benefit from sustained investment in electrification in the US and Europe, as well as growth in data centres. Prysmian was weighted at 1.8% at month end. Schneider Electric (ENXTPA:SU) also delivered strong results, though the shine was diminished by the pre-earnings announcement of the acquisition of a sizeable US software business, PTC Inc., with the market questioning the size of the deal and associated synergies, despite the bright outlook for Schneider’s existing core business.
Earnings from our US water treatment business, Xylem Inc. (NYSE:XYL), were less positive. Customer project delays and a slower outlook in the near term for utilities spending led the company to cut 2026 guidance, and the shares followed suit. Our ASX-listed small cap radiology business also delivered an update at their AGM. Guidance for FY27 was lower than expected, owing to an inability to secure sufficient labour and resultant pressure on the cost base as they pay temporary staff (at higher rates) to fill the gaps. Given the weaker than expected outlook, the shares also declined sharply at month end.
Portfolio breakdown
Country breakdown
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.