MICROEQUITIES ASSET MANAGEMENT

DEEP VALUE MICROCAP FUND UPDATE, SEPTEMBER 2010 PERFORMANCE UPDATE

Dear Investor,

The Microequities Deep Value Microcap Fund hits a new record high returning a positive +8.37% versus the All Ordinaries
Accumulation Index Positive +5.02% in September; this brings the total return net of fees to 109.03% for the Fund compared to
58.48% for the All Ordinaries Accumulation Index since inception in March 2009.

The month of September ended with our Deep Value

Microcap Fund hitting an all time record high unit price of Deep Value Microcap Fund
$2.0343. Importantly the relative performance of our Fund Value of $100,000 invested at inception
against our benchmark of the All Ordinaries Accumulation
Index, displays a significant outperformance. Ultimately it’s $220,000
that outperformance that we strive to maintain, irrespective $200,000
of market conditions.
$180,000
Despite what we believe to be, very favourable domestic
economic conditions, the Australian equity market $160,000
performance for 2010 has so far been disappointing. The All $140,000
Ordinaries Accumulation Index has returned a negative
-1.91% year to date. Pleasingly, our Deep Value Microcap $120,000
Fund has returned 10.23% year to date. We have delivered a Deep Value Microcap Fund
$100,000
double digit return within a challenging equity market. All Ords Accumulation Index
$80,000
Our portfolio is heavily weighted in companies that should
deliver our investors access to quality growth in earnings in
businesses with compelling products and services. We are
confident that we will continue to provide “Deep Value” to
our investors.

Written by Carlos Gil, Chief Investment Officer.

Latest Unit Price
2.0% Cash $2.0343
3.5% Software & Services Latest Fund Performance as at
4.1%
Telecommunications Services 30/09/2010
12.9% 1.1% 1 Month +8.37%
Food Products
Hotels Restaurants & Leisure 3 Month +13.20%
5.4% 39.2%
Consumer Durables Apparel 6 Month +3.94%
Media 12 Month +25.62%
9.9%
Capital Goods Since
+109.03%
Health Equipment & Services Inception
3.8% Metals & Mining (Net of Fees, including
8.5%
4.9% Technology Hardware & Equipment distributions)
4.8% Comercial Services & Supplies

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*Deep Value Portfolio as of 30 of September 2010

Suite 702, 109 Pitt Street Sydney NSW 2000  Office: +61 2 9231 6169  Fax: +61 2 9475 1156 invest@microequities.com.au