Download the PDF update (April 2026)
About the fund
The Pure Microcap Value Fund is a wholesale fund investing in a portfolio of undervalued, profitable and growing ASX microcap companies.
Performance
| Period | Fund |
|---|---|
| Compound p.a. since inception | 5.52% |
| Total since inception | 58.58% |
| 7 Year Annual Compound | 8.34% |
| 5 Year Annual Compound | 1.77% |
| 3 Year Annual Compound | 0.21% |
| 1 Year | -11.74% |
| 1 Month | -4.16% |
Past performance is not indicative of future performance.
Market update and commentary
Australia’s headline inflation rate fell from 4.6% to 4.2% for the month of April. The fall in the headline rate was driven by the cut in fuel excise on April 1st. Trimmed inflation, rose by 10 bps to 3.4% from a month earlier. The CPI number came in a month which saw weakness in the labour market with the unemployment rising to 4.5% in April. We expect the RBA to hold rates at its June board meeting, as the central bank will want to see the effects of its recent rates rise permeate through the economy before taking any further action. The US-Iran conflict continued throughout the month with a fragile ceasefire remaining in place. The oil market has largely discounted a worst-case supply disruption, and oil prices remain relatively subdued despite the disruption to global supply chains. Part of the reason for the modest increase in prices is the reliance on oil inventories to smooth supply. Inventories will not last indefinitely and therefore the US administration has a limited timeframe to reopen the Strait of Hormuz. Despite the geopolitical backdrop, the US economy remains resilient, with the April jobs report showing the economy added 115,000 non-farm jobs. Whilst the Federal Reserve remains dovish, divisions are emerging within the committee, with four of the twelve members dissenting from the decision to hold rates and signalling a growing easing bias.
Microequities Pure Microcap Value Fund returned -4.16% in April; this brings the total return net of fees to 58.58% for the Fund since inception in October 2017.
The Fund’s negative performance this month was impacted by the share price decline of the Fund’s largest position. The company’s share price declined by more than 15% during the month, following last month’s 20% share price fall, with no fundamental news flow or events to explain the move. The investment management team met with company executives during the month, and the business remains on track to deliver strong earnings growth this financial year, after delivering 54% organic revenue growth in 1H26 and 34% EBITDA earnings growth on an organic basis. This investment has been held by the Fund for more than five years and continues to represent a superb high quality asset, with a long runway for growth across multiple jurisdictions. It is supported by a strong and committed management team with significant equity ownership. We remain firmly committed to this investment and expect the share price to resume an upward trajectory over the ensuing months.
Monash IVF (ASX:MVF) received an improved 90c cash non-binding offer from private equity. This was higher than the last offer of 80c but was again swiftly rejected by the board.
2 of our investments in the mining services and industrial sector provided quarterly updates. Both companies are trading strong with tailwinds from the mining sector, commercial construction and infrastructure spend. Both companies trade at 2-3x FY26 forecast EBITDA multiples and we have been adding to our position.
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.