Download the PDF update (July 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 | 11.20% |
| Total since inception | 121.65% |
| 7 Year Annual Compound | 9.90% |
| 5 Year Annual Compound | 8.30% |
| 3 Year Compound Annual | 8.24% |
| 1 Year | 10.01% |
| 1 Month | -2.95% |
Past performance is not indicative of future performance.
Value of $100,000 invested at inception
- Fund: $100,000 to $221,650
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 Value Income Fund returned -2.95% net of fees in July; this brings the total return net of fees to 121.65% for the Fund since inception in February 2019.
Education services company provided a strong 1H26 trading update with revenue up 48% and PBT 57% higher. The company holds net cash of $24m and we estimate trades at 7x FY26 PE. In the absence of material acquisitions, we would expect a strong interim and final dividend along with resumption of the share buyback.
Financial software business again upgraded earnings guidance with cash EBITDA now expected to grow 79% v FY25. We would expect the board to announce a strong final dividend with potential for return of any surplus capital.
Mining services company reported unaudited FY26 results with revenue 5.5% higher and EBITDA 66% higher. Significant free cash flow generation has seen the company move into slight net cash position. Management do note positive operating conditions have continued into July, and new contracts will contribute further in 1H27. Shares trade at 6.8x FY26 PE and over 10% net dividend yield.
Funds management group announced preliminary 1H26 financials with normalised NPAT to be around double the level of the same time last year, with performance fees a strong contributor to the result. Funds under management has been boosted by both positive investment performance and net inflows. Shares continue to trade on single digit PE ratio compared to similar peers which trade at 3-4x the PE multiple.
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/