Datt Small Companies Fund Performance – January 2026

The Datt Small Companies Fund returned -2.61% in January, underperforming its benchmark by 5.35% as Technology and Materials detracted.

Market Overview

The S&P/ASX 200 advanced modestly in January. Market leadership remained oriented toward cyclicals, particularly Materials, while Technology and Healthcare lagged and Financials showed a mixed performance. Inflation dynamics stayed firm, and with no decisive shift in policy expectations, the RBA's steady stance continued to support a higher-for-longer rates narrative. This kept markets sensitive to macro data and global developments, contributing to intermittent volatility through the month.

Liquidity conditions remained constructive despite this backdrop, and the persistent value differential between large and small caps continued to present selective opportunities where valuations have reset but earnings outlooks remain resilient.

Performance Snapshot

• 1 month: -2.61%
• 3 months: 3.39%
• 6 months: 12.86%
• 1 year: 40.39%
• Since inception p.a.: 32.24%
• Since inception total: 92.20%

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

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

Portfolio Insights

Certain names in Technology and Professional Services were the best-performing segment of the portfolio in January, while Technology and Materials holdings elsewhere in the book were the largest detractors, reflecting the dispersion within those sectors during the month.

The Fund remained conservatively positioned given prevailing market conditions. The portfolio held an elevated level of cash following a significant reduction in materials exposure, most prominently in precious metals. Capital continued to be directed towards companies with clear utility, strong economics and clean balance sheets, as recent volatility has thrown up value opportunities for long-term investors. The Fund held 27 positions at month end, with 67% of capital deployed and the top five positions representing 27% of exposure.

Why It Matters for Investors

January reinforced that dispersion within sectors can matter as much as dispersion between them. Technology names sat on both sides of the ledger this month, a reminder that sector labels alone do not capture the underlying quality differences that drive small-cap returns.

Outlook

The Fund continues to see the environment as beneficial for active, skilled stock pickers, with the persistent value differential between large and small caps supporting the case for selective, research-led positioning.

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.