7/31/2019 Microequities High Income Value Microcap Fund June 2012 update

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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 PERFORMANCE UPDATEby Carlos Gil, Chief Investment Officer

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 High Income Value Microcap Fund returned a negative -2.21% versus the All Ordinaries AccumulationIndex positive +0.25% in June.

Whilst June performance was the first month of relative underperformance by the Fund the holdings of the trust have been

constituted in manner that will deliver continued and recurring income generation, coupled with long term capital growth.

We are confident those objectives will be be met. The Fund will be paying its first cash distribution of 2.97c per unit.

Australian tax resident unit holders will also receive a franking credit of 1.3c per unit.

The Funds cash position has been deliberately brought down due to strong new investor commitments received for July.

Current Forecast Grossed Up Dividend Yield of the Fund*: +12.67%*Forecast Grossed up Yield is based on internal forecasts and actual results may vary. Investors should note that Gross Dividend Yield is not a forecast

distribution as distributions will depend on actual dividend income received and actual number of units on issue at the time a distribution is made.

*High Income Value Microcap Portfolio as of 30th

of June 2012

3.8%

50.6%

14.1%

3.6%

11.1%

2.5%4.8%

0.9%

7.2% 1.5% Cash

Software & Services

Consumer Durables &

Apparel

Capital Goods

Media

Commercial Services &

Supplies

Diversfied Financials

Retailing

Banks

Real Estate

Latest Unit Price

$0.9805Latest Fund Performance as at May 31, 2012

FUND AOAI* OP*

1 Month -2.21% +0.25% -2.47%

3 Month -3.96% -5.64% +1.68%

6 Month

12 MonthInception -1.95% -4.55% +2.60%

(Returns are calculated after all fees and expenses and

reinvestment of distributions. Inception of Fund March 1,

2012) *AOAI: All Ordinaries Accumulation Index. *OP: Out-

performance.

Past performance is not indicative of future performance.

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