Datt Absolute Return Fund Performance – April 2026

In April 2026, the Fund returned -2.13%, as the Fund held cautious positioning ahead of an anticipated volatile tax-loss season.

Consolidation Ahead of a Volatile Tax-Loss Season

The Datt Absolute Return Fund delivered a net return of -2.13% in April, underperforming a Benchmark return of 0.75%. The Fund has returned 14.19% per annum net to investors since inception. April was a month of consolidation with little portfolio movement, as the Fund positioned cautiously ahead of the upcoming tax-loss season in May and June, a period expected to bring rising volatility given one of the most significant Federal Budgets in recent Australian history and proposed amendments to taxation policy.

At month end, the Fund held 13 positions with 69% of capital deployed. The top five holdings represented 55% of portfolio exposure.

Performance Snapshot

• 1 month: -2.13%
• 3 months: -17.44%
• 1 year: -8.24%
• 3 years p.a.: 13.45%
• 5 years p.a.: 11.62%
• Since inception p.a.: 14.19%
• Since inception total: 178.91%

Performance is reported net of all fees and expenses. Past performance is not an indicator of future performance. Download the full report — "April 2026 - Absolute Return Fund Newsletter" — [PLACEHOLDER: Google Drive link].

Market Overview

Market leadership was concentrated in cyclicals, with Materials and Technology leading an early-month recovery while Healthcare remained weak and Financials traded mixed. The March quarter CPI print came in line with expectations, and rate hike expectations were stable through most of the month. Despite a weak end to April and an extended losing streak, the ASX 200 finished the month positive, largely on concentrated buying in ASX20 names.

Inflation remains a concern, with the RBA raising cash rates by a further 25 basis points into May. The Fund anticipates a rising inflation outlook ahead, driven by the energy shock stemming from the war in the Middle East.

Portfolio Insights

The portfolio's top three holdings at month end were ALD (Energy), WA1 (Materials) and WTC (Technology). Positioning remained largely unchanged through April as the Fund held its settings into the more volatile months ahead.

Key portfolio characteristics at month end:

• 13 positions held
• 69% of capital deployed
• Top five positions representing 55% of exposure
• Energy, Materials and Technology holdings led the portfolio's top positions

Why It Matters for Investors

April demonstrated the value of positioning ahead of known catalysts rather than reacting to them. With a major Federal Budget and tax-loss season both on the near-term horizon, the Fund's low turnover this month reflects deliberate caution rather than inactivity, a distinction that matters for investors assessing manager discipline through quieter periods.

Outlook

The Fund continues to see the current environment as beneficial for active, skilled stock pickers, with opportunities expected to widen across sectors as tax-loss season approaches. Caution remains warranted given the scale of proposed taxation changes and the prospect of an energy-driven rise in inflation.

About the Datt Absolute Return Fund

The Datt Absolute Return Fund is an independent, research-led strategy focused on capital preservation and delivering consistent, risk-adjusted returns across market cycles.

Key details:

• Minimum investment: $100,000
• Management fee: 1.03%
• Performance fee: 20.5% above benchmark
• Benchmark: RBA Cash Rate + 5%
• Custodian: HSBC
• Auditor: Ernst & Young
• Trustee: Fundhost

To learn more or request a discussion, contact Daniel Liptak at daniel@datt.com.au or 0419 004 524.