Microequities Asset Management Group Limited (ASX:MAM) has released a market update addressing recent volatility in global equity markets. Microequities is a boutique value-driven fund manager specialising in exchange-listed industrial microcaps and small caps. Established in 2005, the company manages multiple investment funds.
The announcement details that global equity markets have experienced heightened volatility due to macroeconomic and geopolitical factors, including the escalation of conflict in the Middle East, which has led to an energy shock and renewed inflation concerns. Consequently, Microequities’ Funds Under Management (FUM) have decreased from approximately $657.0 million as of December 31, 2025, to approximately $518.14 million as of April 1, 2026. The company attributes this decline primarily to mark-to-market valuation movements.
Despite the decrease in FUM, Microequities assures investors that it remains strongly capitalised, with a robust balance sheet comprising cash and liquid financial assets. The company reports that it continues to operate profitably and generate free cash flow, highlighting the resilience of its business model. The investment management team is actively optimising fund portfolios and monitoring the evolving risk environment.
Microequities believes that the current market environment presents attractive opportunities to acquire high-quality growth assets at heavily discounted valuations. The company anticipates that these actions will position its funds to outperform as conditions stabilise and markets recover. While acknowledging that near-term volatility is likely to persist, Microequities notes that markets are increasingly exhibiting characteristics of being oversold, which historically has preceded periods of strong market recovery.
