JUNE 2012 PERFORMANCE UPDATE by 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 Accumulation Index 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.

7.2% 0.9% 4.8% 2.5%

1.5%

3.8%

Cash Software & Services Consumer Durables & Apparel Capital Goods Media

Latest Unit Price $0.9805

Latest Fund Performance as at May 31, 2012
FUND 1 Month 3 Month 6 Month 12 Month Inception AOAI* OP*

-2.21% -3.96%

+0.25% -5.64%

-2.47% +1.68%

11.1% 3.6% 14.1% 50.6%

Commercial Services & Supplies Diversfied Financials Retailing Banks Real Estate

-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: Outperformance. Past performance is not indicative of future performance.

*High Income Value Microcap Portfolio as of 30 of June 2012

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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