Download the PDF update (June 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 | 12.15% |
| Total since inception | 630.10% |
| 15 Year Compound Annual | 9.01% |
| 10 Year Compound Annual | 2.30% |
| 5 Year Compound Annual | -3.66% |
| 3 Year Compound Annual | -4.77% |
| 1 Year | -24.48% |
| 1 Month | -1.57% |
Past performance is not indicative of future performance.
Value of $1,000,000 invested at inception
- Deep Value Fund: $1,000,000 to $7,301,025
- All Ords Accumulation Index: $1,000,000 to $5,744,711
- S&P/ASX Small Ords Accumulation: $1,000,000 to $3,921,288
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 Deep Value Fund returned -1.57% in June; this brings the total return net of fees to 630.10% for the Fund since inception in March 2009.
One of our financial services investee companies downgraded its earnings guidance during the month. The resulting decline in the company's share price was the primary contributor to the Fund's negative performance for the month.
ReadyTech Ltd (ASX:RDY), a top five holding in the Deep Value Fund, received an indicative acquisition proposal at a premium of circa 50% to the undisturbed share price. The ReadyTech board rejected the proposal, determining that it did not reflect the company's underlying intrinsic value. Later in the month, ReadyTech announced it had been selected as the preferred Student Management System platform provider for the Victorian TAFE Network following a competitive tender process. The contract positions ReadyTech to provide a common platform across all 11 Victorian TAFEs, with its software already deployed by three institutions. The rejected offer is again, another tangible demonstrable data point that the mark to market prices of many assets in the Deep Value Fund are currently materially disconnected to underlying intrinsic valuations.
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.