• Funds Under Management declined due to market volatility
• Company remains strongly capitalized with robust balance sheet
• Experienced investment team optimizing portfolios amid opportunities

Microequities Asset Management Group Limited (ASX:MAM) has provided a market update, noting that global equity markets have experienced a period of heightened volatility over recent months, driven by a confluence of macroeconomic and geopolitical factors. The escalation of conflict in the Middle East has triggered a significant energy shock, with disruptions to global oil supply chains contributing to sharp increases in energy prices and renewed concerns around inflation. Against this backdrop, global equity markets have declined and exhibited increased dispersion, leading to significant mark to market falls. Microequities' Funds Under Management (FUM) has declined from circa $657.0m (as at 31 December 2025) to circa $518.14m (as at 1 April 2026), predominantly driven by mark-to-market valuation movements. The company remains strongly capitalized, with a robust balance sheet comprising cash and liquid financial assets. The business continues to operate profitably and continues to generate free cash flow, demonstrating the resilience of the company's business model. The highly experienced investment management team has continued to optimize the Funds' portfolios and monitor the evolving risk environment. The current environment is creating attractive opportunities to acquire high-quality growth assets at heavily discounted valuations, which the company believes will position the Funds to outperform strongly as conditions stabilize and markets recover.

While near-term volatility is likely to persist given ongoing geopolitical uncertainty and macroeconomic pressures, markets are increasingly exhibiting characteristics of being oversold, which historically has preceded periods of strong market recovery as sentiment stabilizes.