Download the PDF update (June 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 | 11.78% |
| Total since inception | 128.38% |
| 7 Year Annual Compound | 11.42% |
| 5 Year Annual Compound | 9.48% |
| 3 Year Compound Annual | 11.49% |
| 1 Year | 16.85% |
| 1 Month | 2.52% |
Past performance is not indicative of future performance.
Value of $100,000 invested at inception
- Fund: $100,000 to $228,378
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 Value Income Fund returned 2.52% net of fees in June; this brings the total return net of fees to 128.38% for the Fund since inception in February 2019.
Education services company provided a Term 2 enrolment update, ahead of market consensus expectations and laying the groundwork for another record year in revenue and profitability. We estimate this business will grow net profit by 40%+ this year and trades on c.6.5x PE.
Asset maintenance company announced a raft of contract wins and confirmed FY26 will come in at the top of the previous guidance range. More impressively, management have come out with initial FY27 guidance which shows another strong year of profit growth.
Two of our investments in residential housing development provided trading updates. One noted a slight softening in sales and enquiry activity in Q4, however is expected to hit towards the top end of earnings guidance of 30-35% NPAT growth. The other company noted strong sales in a completed project and guidance was re-affirmed for FY26.
A consumer products company said 1H26 revenue will be 2-4% higher and profits will be modestly higher. Solid revenue growth in core markets have offset weakness in its Chinese market sales. Another company in healthcare services downgraded profit expectations by c.13% due to weak sector conditions.
Lastly, our investment in a niche media business noted revenue will be 14-17% lower and EBITDA 40-52% lower due to challenging advertising market conditions. Cash generation continue to be the highlight with the company expecting to pay out a large final dividend, equivalent to 29% yield at the current share price.
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/