Microequities Asset Management Group delivered a robust November trading update, driven by strong returns in its Pure Microcap Value Fund and a final performance payment from a special purpose vehicle, pushing half-year profits above last year’s level.
- November operating profit from investment management approximately $1.9 million
- 1H26 year-to-date operating profit reaches $5.3 million, surpassing 1H25’s $4.9 million
- Strong performance fees from Pure Microcap Value Fund and special purpose vehicle
- Results based on unaudited management accounts with volatile, non-recurring income
- Half-year FY26 results due for release on 13 February 2026
Strong November Performance
Microequities Asset Management Group Limited (ASX – MAM) has reported a strong trading performance for November 2025, highlighting the resilience and potential of its boutique investment approach. The company’s operating profit from investment management for the month reached approximately $1.9 million, a figure that underscores the positive momentum in its core business activities.
Driving Forces Behind Growth
The standout contributor to this performance was the Pure Microcap Value Fund, which delivered robust investment returns during the period. Additionally, Microequities benefited from the final performance payment linked to the conclusion of a special purpose vehicle, further bolstering its financial results. These factors combined to lift the year-to-date operating profit for the first half of FY26 to around $5.3 million, exceeding the $4.9 million recorded in the comparable six-month period ending December 2024.
Volatility and Future Outlook
One should note that a significant portion of this income stems from performance fees, which by nature are volatile and non-recurring. This introduces an element of unpredictability to the company’s earnings, suggesting that while the current results are encouraging, investors should remain cautious about extrapolating this performance into the future without considering these fluctuations.
Looking Ahead
Microequities plans to release its audited half-year results on 13 February 2026, which will provide a clearer picture of the company’s financial health and the sustainability of its recent gains. Given its focus on industrial microcaps and small caps, sectors often characterized by higher volatility but also growth potential, the market will be watching closely to see if Microequities can maintain its strong performance trajectory.
Bottom Line?
Microequities’ November surge sets a promising tone, but the reliance on volatile fees calls for cautious optimism.
Questions in the middle?
- How sustainable are the performance fees driving recent profits?
- What impact will market volatility have on Microequities’ microcap-focused funds?
- Will the upcoming half-year results confirm the strength of the unaudited figures?