Datt Small Companies Fund Performance – April 2026

The Datt Small Companies Fund returned -2.79% in April, underperforming its benchmark by 6.12% during a month of positioning ahead of tax-loss season.

Market Overview

The Small Ordinaries rose 3.33% for the month, outperforming parts of the large-cap market but still reflecting a selective rather than broad-based risk-on environment. Sector leadership within small caps remained tilted toward cyclicals and higher-beta industrial and resource exposures, while rate-sensitive names remained under pressure. March-quarter CPI came in firmer but less severe than feared, which helped stabilise risk appetite. Despite late-month volatility, liquidity remained tight and dispersion across the small-cap universe continued to create selective opportunities.

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 present energy shock stemming from the war in the Middle East.

Performance Snapshot

• 1 month: -2.79%
• 3 months: -18.69%
• 6 months: -15.90%
• 1 year: 0.40%
• Since inception p.a.: 18.60%
• Since inception total: 55.33%

Download the full report - "April 2026 - Small Companies Fund Newsletter".

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

Portfolio Insights

April was a month of consolidation with little movement in the portfolio. The upcoming tax-loss season in May and June is likely to bring rising market volatility, stemming from several externalities including one of the most critical Federal Budgets in recent Australian history.

The Fund remained conservatively positioned given volatile market conditions, holding elevated levels of cash and energy exposure. The portfolio's energy exposures continued to benefit from the extended duration of the Strait of Hormuz shutdown, with those effects expected to compound in coming months as the Northern Hemisphere prepares for winter. The Fund held 22 positions at month end, with 70% of capital deployed and the top five positions representing 40% of exposure.

Why It Matters for Investors

April's low turnover reflects positioning ahead of known catalysts rather than inactivity. With a major Federal Budget and tax-loss season both on the near-term horizon, holding steady through a consolidation month can be as deliberate a decision as reallocating capital.

Outlook

The environment remains beneficial for active, skilled stock pickers, with opportunities expected across sectors heading into tax-loss season. Energy exposure remains a deliberate positioning choice given the Fund's expectation of a critically constrained energy market later in the year.

About the Datt Small Companies Fund

The Fund invests in high-quality companies outside the ASX100 with strong fundamentals, scalable business models and long-term growth potential. Our research-led, conviction-based process focuses on identifying undervalued opportunities often overlooked by the broader market. The Fund aims to outperform the Small Ordinaries Accumulation Index over five years through prudent stock selection and disciplined risk control.

Key details:

• Minimum investment: $50,000
• Management fee: 1.54%
• Performance fee: 20.5% above benchmark
• Benchmark: S&P/ASX Small Ordinaries Accumulation Index
• Custodian: HSBC
• Auditor: Ernst & Young
• Trustee: Fundhost

For more information, contact Daniel Liptak at daniel@datt.com.au or 0419 004 524.