7/31/2019 Microequities Deep Value Microcap Fund June 2012 update

1/1

MICROEQUITIES ASSET MANAGEMENT |AFSL 287526 |Suite 702, 109 Pitt Street, Sydney NSW 2000

Office: +61 2 9231 6169 Fax: +61 2 9475 1156 invest@microequities.com.au

JUNE 2012 FUND UPDATE by Chief Investment Officer Carlos Gil

MARKETS AND ECONOMY

If Paul Keating was a current treasurer of one of the EC members, perhaps he would have resorted to This is the crisis

we had to have. As we have stated here previously, Europe will not avoid a recession, indeed some of its member

states will have to endure a particularly severe one. Yet, the apparatus and institutions that govern the fragile coalition

that is today the EC and its monetary system will be solidified and fortified by the prevailing crisis. Greater fiscal

alignment at the expense of political sovereignty, bolstered mechanisms of banking supervision, perhaps an expanded

mandate for the ECB and other institutional measures some of which are being canvassed and others will shortly be

instigated will make the Europe of tomorrow a better structured union with more effective tools for fostering stability

and growth of the region. Of course the crisis will endure with us for some time, and upturn in economic growth for the

region is not forthcoming; however we look at the events unfolding as a catalyst for a better future for the region. A

long term investor needs to not merely see the next turn in the road, but the full road ahead.

Microequities Deep Value Microcap Fund returned a negative -3.40% versus the All Ordinaries Accumulation Indexpositive +0.25% in June; this brings the total return net of fees to 121.45% for the Fund compared to 52.04% for the

All Ords Accumulation since inception in March 2009.

The month of June was the first time since January that we have posted a relative underperformance. We accept

relative underperformance will occur from time to time. It will not however affect the manner by which we manage the

Fund. Our approach to investing is based on long term commitments to business partnerships that will deliver beneficial

long term outcomes for our investors. I emphasise long term, because we cannot be a long term investor and become

infatuated with short term market pricing. A months change in market pricing for our business partnerships does not

cause any reactionary changes to our commitments or our view of the intrinsic value of our business partnerships. We

look forward to the forthcoming financial reporting season were many of our business partnerships will articulate the

underlying strength of their business operations.

*Deep Value Microcap Portfolio as of 29th

of June 2012

3.2%

39.7%

7.0%11.9%

11.0%

10.3%

3.4%

5.4%

8.2%Cash

Software & Services

Telecommunications

Media

Commercial Services &

Supplies

Health Care Equipment &

Services

Diversfied Financials

Utilities

Hotels & Restaurants

Latest Unit Price

$1.9536Latest Fund Performance as at June 29, 2012

FUND AOAI* OP*

1 Month -3.40% +0.25% -3.65%

3 Month -6.53% -5.64% -0.90%

6 Month +7.36% +2.86% +4.50%

12 Month +10.56% -7.04% +17.61%

2 yrs comp pa +9.51% +2.11% +7.40%3 yrs comp pa +23.90% +5.86% +18.03%

Inception +121.45% +52.04% +69.41%

(Returns are calculated after all fees and expenses and reinvestment of

distributions. Inception of Fund March 2009) *AOAI: All Ordinaries

Accumulation Index. *OP: Out-performance.

Past performance is not indicative of future performance.

mailto:invest@microequities.com.aumailto:invest@microequities.com.au