Datt Absolute Return Fund Performance – October 2025

Disciplined Positioning Through Market Volatility

The Datt Absolute Return Fund recorded a net return of –4.92% in October 2025, reflecting broad market volatility and a pullback in materials, particularly gold-related exposures. Technology was the strongest contributor, supported by renewed strength across software and digital infrastructure.

Since inception in 2018, the Fund has returned 252.74% in total, or 19.03% per annum, compared with the benchmark’s 66.53% total gain.

Full performance snapshot:

• 1 month: –4.92%
• 3 months: +7.96%
• 1 year: +32.62%
• 3 years (p.a): +17.23%
• 5 years (p.a): +18.44%
• Since inception (p.a): +19.03%
• Since inception (total): +252.74%

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

Market Overview

The S&P/ASX 200 Index ended October slightly positive, while small caps also outperformed modestly. Markets saw broad sector rotation, with strength in Financials and Healthcare, offset by weakness in Materials.

Inflation data came in above expectations, reinforcing the view that the RBA will hold cash rates steady at 3.60%. Market sentiment softened late in the month as investors de-risked ahead of year-end.

Despite the volatility, the environment remains favourable for active fund managers focused on risk-adjusted returns, given the ongoing dispersion across sectors and the widening gap between high-quality and speculative assets.

Portfolio Insights

At month-end, the Fund held 18 positions, with 83% of capital deployed. The top five positions represented 45% of total exposure, consistent with the Fund’s high-conviction, concentrated approach.

• Technology led performance, driven by companies showing strong recurring revenue and operating leverage.
• Materials detracted most, impacted by sharp sentiment shifts in gold.

While short-term volatility affected results, the Fund’s defensive positioning remains deliberate, reflecting a focus on capital preservation amid changing macro conditions.

Outlook

We remain constructive on the portfolio’s underlying fundamentals and continue to identify compelling, long-term opportunities across the Australian equity market.

The Fund’s flexible mandate allows selective participation across sectors and market caps, ensuring exposure to quality businesses capable of sustaining returns with less volatility.

Our focus remains clear: to preserve capital first, while delivering consistent, positive absolute returns through disciplined research and prudent risk control.

About the Fund

The Datt Absolute Return Fund is an independent, research-led investment strategy that seeks to generate steady returns regardless of market conditions. Since launching in 2018, it has aimed to deliver double-digit returns over two-year periods, guided by a disciplined and risk-aware investment process.

Key details:

• Minimum investment: $100,000 (unless agreed otherwise)
• Management fee: 1.025%
• Performance fee: 20.5% above benchmark
• Benchmark: RBA Cash Rate + 5%
• Custodian: HSBC
• Auditor: Ernst & Young
• Trustee: Fundhost

To learn more about the Fund, contact Daniel Liptak at daniel@datt.com.au or 0419 004 524, or visit the Absolute Return Fund page.