Download the PDF update (October 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 | 11.32% |
| Total since inception | 565.38% |
| 15 Year Compound Annual | 8.12% |
| 10 Year Compound Annual | 0.23% |
| 5 Year Compound Annual | -7.80% |
| 3 Year Compound Annual | -6.78% |
| 1 Year | -35.99% |
| 1 Month | -3.18% |
Past performance is not indicative of future performance.
Value of $1,000,000 invested at inception
- Deep Value Fund: $1,000,000 to $6,653,829
- All Ords Accumulation Index: $1,000,000 to $5,841,165
- S&P/ASX Small Ords Accumulation: $1,000,000 to $3,649,607
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 Deep Value Fund returned -3.18% in October; this brings the total return net of fees to 565.38% for the Fund since inception in March 2009.
The largest investee company in the Deep Value Fund provided a regulatory update concerning its core market during the month. The new regulatory code is not expected to have any material impact on its business, with the company having already incorporated substantive elements of the code. The update provides our investee company with greater regulatory clarity in its core market and materially reduces the regulatory risks surrounding the business.
OFX Group (ASX:OFX) reported improving trading momentum in 2Q27, with net operating income increasing 3.1% quarter-on-quarter to $45.3 million, although remaining 9.6% below the prior year. Corporate revenue grew 6.9%, supported by improved FX margins and transaction volumes, while the company implemented $15 million in annualised cost reductions. Meanwhile, the proposed $1.00 per share acquisition by Equals remains uncertain following the termination of exclusivity, although discussions are continuing.
The investment management team expects to add a new investee company to the portfolio during November. Further details to provided.
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.