Download the PDF update (August 2026)
About the fund
The Deep Value Fund is a wholesale fund investing in a concentrated portfolio of undervalued, profitable, and growing ASX listed microcap and smallcap companies.
Performance
| Period | Fund |
|---|---|
| Compound p.a. since Inception | 12.25% |
| Total since inception | 655.56% |
| 15 Year Compound Annual | 9.12% |
| 10 Year Compound Annual | 1.44% |
| 5 Year Compound Annual | -4.61% |
| 3 Year Compound Annual | -5.18% |
| 1 Year | -27.71% |
| 1 Month | 3.72% |
Past performance is not indicative of future performance.
Value of $1,000,000 invested at inception
- Deep Value Fund: $1,000,000 to $7,555,627
- All Ords Accumulation Index: $1,000,000 to $5,952,333
- S&P/ASX Small Ords Accumulation: $1,000,000 to $3,993,814
Market update and commentary
As we noted last month, we believed there was upside risk to inflationary pressures in Australia. That risk materialised in the latest CPI data, with trimmed mean inflation remaining elevated at 3.6%, driven partly by housing costs, which have increased by 5.0% over the past 12 months. The trimmed mean, the RBA’s preferred measure of underlying inflation, remains well above the midpoint of its 2 to 3% target range. This latest reading makes a further interest rate increase highly likely.
The US economy is also confronting persistent inflationary pressures, with headline inflation reaching 3.4% and the PCE price index rising to 3.7%. These readings have renewed pressure on the Federal Reserve to take more decisive action. Federal Reserve Chair Kevin Warsh acknowledged that inflation had exceeded the Fed’s 2% target for 65 consecutive months and signalled that, without imminent progress, the Fed would need to raise interest rates.
Microequities Deep Value Fund returned 3.72% in August; this brings the total return net of fees to 655.56% for the Fund since inception in March 2009.
The FY26 reporting season provided the investment management team with an instructive datapoint on the underlying financial performance of the Deep Value Fund portfolio. In aggregate, the portfolio delivered weighted-average EPS growth of 26.9%, with four of the Fund’s top five investee companies reporting strong EPS growth, while one recorded negative EPS growth. Looking ahead to FY27, the portfolio is forecast to continue delivering strong double-digit EPS growth. Importantly, the Fund’s top five investee companies are collectively expected to generate high double-digit EPS growth, providing a strong fundamental earnings backdrop for the portfolio.
31 companies of the total 37 companies reported FY26 financials in the period March to August 2025. (The 31 companies represent 89.7% of the non-cash assets of the Deep Value Fund)
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.