MARCH 2012 PERFORMANCE UPDATE

Markets and economy With some of Europes economies facing deep recessions Germans economy (Europes biggest) continues to display strong resilience. Germans unemployment fell to 6.7%, the lowest its been in the last 20 years. Its export oriented economy enjoying what is clearly evident; Europe might be struggling, but the world economy is growing. In fact Germanys resilient economy (despite many of its neighboring counterparts enduring mild to strong recessions) is verification of the global forces that drive export oriented economies. Those global forces will deliver growth, because the world economy by large is growing. Reading commentary on theimpending China slowdown it is somewhat bemusing that Chinas revised target of 8% GDP growth is now considered by some as a slowing economy. It wasnt long ago that China superseded Japan as the world second biggest economy. The last time Japan grew at rate of more than 8% was over 4 decades ago (1970), at the time Japan was not the worlds second biggest economy. We have no precedents of an economy the size of China growing at speeds of over eight percent; it is history in the making. Still for the eternal pessimist amongst us, a GDP growth rate of eight percent is unarguably numerically smaller than nine percent. For some, even a glass three quarters full still contains some level of emptiness. Microequities Deep Value Microcap Fund returned a positive +3.90% versus the All Ordinaries Accumulation Index positive +1.15% in March; this brings the total return net of fees to 136.92% for the Fund compared to 61.12% for the All Ords Accumulation since inception in March 2009. Our Deep Value Microcap Fund posted its 4 consecutive positive return with a strong 3.9% return for the month. Pleasingly the Deep Value Microcap Fund has now stretched its outperformance against the benchmark index by 75.8% since inception, to deliver a total return since inception of 136.92% (versus 61.12% for the All Ordinaries Accumulated Index Return). The Deep Value Fund saw its biggest position (previously 13% of total assets of the fund) reweighted to around 7%. The Funds biggest position is now held by a business that was previously ranked third in the overall weightings. We will from time to time revise our weightings to make sure that they represent the optimal risk/reward relationship. Written by Carlos Gil, Chief Investment Officer. Written by Carlos Gil, Chief Investment Cash Officer. 2.6% 4.5%
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*Deep Value Portfolio as of 30 of March 2012

Software & Services Telecommunications Services Hotels Restaurants & Leisure Media Health Equipment & Services

Latest Unit Price $2.0901

Latest Fund Performance as at March 30, 2012
FUND 1 Month 3 Month 6 Month 12 Month 2 yrs comp pa 3 yrs comp pa Inception AOAI* OP*

3.9% 12.5% 9.4% 38.1%

6.7%

14.5%
7.9%

Commercial Services & Supplies Diversified Financials Utilities

+3.90% +14.86% +21.52% +9.64% +8.54% +30.43% +136.92%

+1.15% +9.00% +11.03% -6.20% -0.85% +12.29% +61.12%

+2.75% +5.86% +10.49% +15.84% +9.39% +18.15% +75.80%

(Returns are calculated after all fees and expenses and reinvestment of distributions. Inception of Fund March 2009)

*AOAI: All Ordinaries Accumulation Index. *OP: Outperformance.

Past performance is not indicative of future performance.

*Deep Value Portfolio as of March 30, 2012

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