Absolute Return Fund Performance: July 2026

Using July's Weakness to Add to Growth and Energy

In July 2026, the Datt Absolute Return Fund recorded a net return of -2.36%. The Fund has returned 11.68% per annum net to investors since inception. The decline was driven primarily by the Fund's energy and healthcare exposures, as energy prices declined further on an apparently stabilising Middle East and the flow-through of the June ceasefire. These declines outweighed strong contributions from WiseTech and HUB24, which rebounded materially over the month.

Performance Snapshot

Performance reported net of all fees and expenses. Inception August 2018. Past performance is not an indicator of future performance.

Download the full report: July 2026 - Absolute Return Fund NewsletterJuly 2026

To summarise:

• Monthly return: -2.36%
• 3-month return: -13.40%
• 1-year return: -26.08%
• 3-year return (p.a.): 5.42%
• 5-year return (p.a.): 8.07%
• Annualised return since inception: +11.68%
• Net return since inception: +141.52%
• Unit price: $1.0130
• Fund status: Open to wholesale investors

Disclaimer

• The Fund's benchmark is the RBA Cash Rate plus 5% per annum.
• Past performance is not a reliable indicator of future results and does not guarantee future returns. Investment in the Fund is limited to wholesale and sophisticated investors as defined under Australian law.
• The Datt Absolute Return Fund was launched in August 2018. Returns shown are calculated net of all fees and expenses and reflect actual performance since inception. Performance may vary for individual investors depending on the timing of their investment.

A Fourth Straight Monthly Gain Masked Widening Dispersion

The ASX 200 rose approximately 2% in July, a fourth consecutive monthly gain, reaching a five-month high near 9,086 late in the month. The gain masked unusually narrow participation. Miners continued to carry the market after a FY26 in which the S&P/ASX 200 rose just 2.8% overall, while technology, healthcare and telecommunications underperformed. For an actively managed strategy, this dispersion is the more relevant signal than the headline index move.

Softer Inflation Took an August Rate Rise Off the Table

Headline CPI eased to 3.8% in the year to June, down from 4.0% in May, while the RBA's preferred trimmed mean measure held at 3.6%. Much of the relief came from a 10.9% monthly fall in automotive fuel prices as global oil prices stabilised and federal excise relief flowed through, even as housing inflation ran at 6.8% and electricity rose 22.4% as rebates unwound. The RBA held the cash rate at 4.35% at its July meeting, retaining a hiking bias.

Portfolio Positioning – July Snapshot

The Fund used July's weakness to increase market exposure, adding to energy and growth positions while reducing financials and retailers. At month end the Fund held 18 positions, with the top five accounting for 57% of the portfolio. The three largest holdings, in alphabetical order, were:

• New Hope Corporation (NHC): Energy
• Whitehaven Coal (WHC): Energy
• WiseTech Global (WTC): Technology

Energy remained the Fund's largest sector exposure at 38%, followed by Materials at 21.2% and Information Technology at 18%.

A Disciplined Setup for FY27

The Datt Absolute Return Fund is a long-only, benchmark-unconstrained strategy designed to generate absolute returns through disciplined, research-led investing. In a month where headline index gains concealed sector-level weakness, the Fund's approach continued to demonstrate:

• Active allocation into dispersion, not index tracking
• Disciplined capital preservation through a soft month
• Full manager alignment with investors
• A concentrated portfolio built on independent research

The team remains constructive on positioning into August and expects dispersion across the market to continue creating selective opportunities for active managers. To learn more about the Absolute Return Fund, visit the Fund page or contact our Head of Distribution, Daniel Liptak, on 0419 004 524 or via email at daniel@datt.com.au.

About Datt Capital

Datt Capital is an investment fund manager in Australia focused on capital preservation and risk-adjusted returns. Our philosophy is centred on long-term wealth creation, combining disciplined research, opportunistic thinking and a strong focus on capital preservation.