Download the PDF update (July 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 | 12.08% |
| Total since inception | 628.45% |
| 15 Year Compound Annual | 8.75% |
| 10 Year Compound Annual | 1.90% |
| 5 Year Compound Annual | -4.21% |
| 3 Year Compound Annual | -5.86% |
| 1 Year | -25.51% |
| 1 Month | -0.23% |
Past performance is not indicative of future performance.
Value of $1,000,000 invested at inception
- Deep Value Fund: $1,000,000 to $7,284,486
- All Ords Accumulation Index: $1,000,000 to $5,841,397
- S&P/ASX Small Ords Accumulation: $1,000,000 to $3,797,172
Market update and commentary
A softer than expected Australian CPI print of 3.8% has increased expectations that the Reserve Bank of Australia (RBA) has reached the end of its tightening cycle. Trimmed mean inflation, the RBA's preferred measure of underlying inflation, eased to 3.6%. However, we continue to view the inflation outlook as mixed. Tight labour markets, constrained supply, and persistent housing shortages continue to present upside risks to inflation. In the near term, the more likely outcome is that the RBA holds the cash rate steady at its upcoming August Board meeting. Beyond that, however, the balance of risks continues to lean towards further policy tightening. Across global financial markets, attention remains firmly focused on geopolitical developments, particularly the conflict between the United States and Iran. As we noted last month, the ceasefire appeared fragile, subsequent events have reinforced that assessment, with hostilities resuming in recent weeks. The US faces a complicated exit pathway as Iran insists on taking navigational authority over the Hormuz straight and is asserting operational control through military means. If the US were to concede operational control of the straight to Iran, it would effectively provide Iran with a tangible strategic victory in the conflict, an unpalatable outcome for the US.
Microequities Deep Value Fund returned -0.23% in July; this brings the total return net of fees to 628.45% for the Fund since inception in March 2009.
Following last month's swiftly rejected takeover approach for ReadyTech Ltd (ASX), which valued the company at a 50% premium to its undisturbed share price, a second takeover event occurred within our investment portfolios. OFX Ltd (ASX:OFX) announced that it had entered into a Transaction Process Deed (TPD) with private equity-backed Equals Plc regarding an all-cash acquisition of OFX at $1.00 per share, representing a 108% premium to the undisturbed share price. The proposed transaction has the unanimous support of the OFX Board and remains subject to confirmatory due diligence and financing. OFX currently represents 3.1% of the net assets of the Deep Value Fund.
We are excited to announce that the Deep Value Fund has begun to acquire a stake in an industrial business that has an extremely strong earnings pipeline over the next 3 years. The investment presents us with a formidable risk adjusted return profile. The investment management team will continue to diligently acquire on market to build its stake in this exciting opportunity.
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.