Download the PDF update (April 2026)
About the fund
The Microequities Value Income Fund (“VIF”) (ARSN 629 674 175) is a retail fund investing in high dividend paying, undervalued, ASX smaller companies. This fund is appropriate for investors with “High” risk and return profiles. A suitable investor for this fund is prepared to accept high risk in the pursuit of capital growth with a medium to long investment timeframe. Investors should refer to the TMD for further information.
Performance
| Period | Fund |
|---|---|
| Compound p.a. since inception | 11.39% |
| Total since inception | 118.58% |
| 7 Year Annual Compound | 11.38% |
| 5 Year Annual Compound | 9.16% |
| 3 Year Compound Annual | 8.90% |
| 1 Year | 13.54% |
| 1 Month | 4.20% |
Past performance is not indicative of future performance.
Value of $100,000 invested at inception
- Fund: $100,000 to $218,585
Market update and commentary
Financial market sentiment continues to be driven by developments in the US Iran conflict, with Iran’s capacity to disrupt maritime traffic through the Strait of Hormuz embedding a material risk premium into LNG and crude oil prices. Despite ongoing diplomatic efforts, the Strait remains largely inaccessible, with shipping volumes down by more than 95% since the conflict began. We see a near term de-escalation as unlikely, and accordingly, higher oil prices for longer remain our base case scenario. While the US benefits from significant domestic crude production and refining capacity, placing it in a stronger position than most to absorb an energy shock, the inflationary consequences are likely to become more pronounced over the next six months. In Australia, these pressures are only beginning to surface. March headline CPI rose to 4.6%, while core inflation remained steady at 3.3%, with the headline print coming in 20 basis points below consensus. We expect inflationary pressures to build in the months ahead, particularly as elevated energy prices begin to filter through the broader economy.
Microequities Value Income Fund returned 4.20% net of fees in April; this brings the total return net of fees to 118.58% for the Fund since inception in February 2019.
April was a relatively mixed month in terms of updates from our portfolio companies.
Financial services company announced its regulator has imposed additional license conditions after the entire sector has come under increased scrutiny following product failures in the sector. Speaking with the company, we believe most of the issues are technical in nature and easily rectified. This company’s share price is off 35% from its peak in October last year and now trades at 12x FY26 PE despite its earnings growth durability.
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.
Payment infrastructure company made a strategically astute and a compelling priced acquisition during the month. This is the second acquisition since IPO for this company, both well priced, but more importantly with high strategic value. Despite the strong share price performance we estimate it is trading at 16x FY27 PE with clear pathway for 15-20% CAGR EPS growth for the next 3-5 years.
Mining services company provided a positive Q3 update with 9 month to date EBITDA earnings 81% higher than last year. The company has minimal net debt and trades at just 2.5x FY26 forecast EBITDA. We think the company will continue its dividend payments in August, implying a grossed up yield of 16%.
The positive return for the Value Income Fund was driven by strong share price performance by a couple of our top positions that have exposure to infrastructure, commercial construction and electrification spend. Two notable long held companies in these sectors saw their share prices rise 28% and 17% respectively.
Portfolio breakdown
Sector breakdown
Market capitalisation
Percentages are of fund net asset value and may not sum to exactly 100% due to rounding.
Portfolio
Disclaimer: This communication has been prepared and issued by Microequities Asset Management Pty Ltd ABN 96 134 984 768 AFS Licence No 287 526, as investment manager of the Microequities Value Income Fund ARSN 629 674 175. The Trust Company (RE Services) Limited (ACN 003 278 831) (AFSL 235150) is the responsible entity. This communication contains general information only and does not take into account investment objectives, financial situation or needs of any particular individual or entity. It does not constitute financial, tax or legal advice, nor is it an offer, invitation or recommendation to subscribe or purchase a unit in the Fund or any other financial product. Before acting on any information contained in this communication, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs. While every effort has been made to ensure the information in this communication is accurate; its accuracy, reliability or completeness is not guaranteed and none of The Trust Company (RE Services) Limited (ACN 003 278 831), Microequities Asset Management Pty Ltd or any of their related entities or their respective directors or officers are liable to you in respect of this communication. A Product Disclosure Statement (PDS) issued in June 2024 is available for the Fund on the following website: http://microequities.com.au/valueincomefund You should obtain the PDS for the Fund and consider the risks and disclosures for your circumstances before deciding whether to acquire, or continue to hold, an interest in the Fund. Initial Applications for units in the Fund can only be made pursuant to the application form attached to the PDS. Past performance is not a reliable indicator of future performance. The PDS and target market determination can be obtained by calling 02 9009 2900 or visiting our website https://microequities.com.au/our-funds/value-income-fund/