Datt Small Companies Fund Performance – October 2025

Small Caps Pause After Strong Quarter

The Datt Small Companies Fund declined 6.12% in October, compared with the S&P/ASX Small Ordinaries Accumulation Index, which gained 1.89%. The Fund’s softer performance was driven by weakness across core materials holdings following a sharp pullback in gold market sentiment.

Since inception, the Fund has returned 85.89%, or 34.61% per annum, versus the benchmark’s 47.07% total gain.

Full performance snapshot:

• 1 month: –6.12%
• 3 months: +9.16%
• 6 months: +20.15%
• 1 year: +44.06%
• Since inception (p.a): +34.61%
• Since inception (total): +85.89%

Performance is reported after all fees and expenses. Inception: October 2023. Past performance is not an indicator of future results.

Download full report here: Datt Small Companies Fund Newsletter - October 2025.

Market Overview

Australian equities were mixed in October. The S&P/ASX 200 Index finished flat, while the Small Ords Index rose 1.89%. Sector rotation continued, with gains in Financials and Healthcare, offsetting a pullback in Materials.

Inflation data came in above expectations, reinforcing the view that the RBA will hold the cash rate steady at 3.60%. Late-month weakness reflected investor caution amid rising volatility.

The environment remains constructive for active fund managers focused on research-driven stock selection, given the persistent valuation gap between large and small caps.

Portfolio Insights

At month-end, 87% of the Fund’s capital was deployed.

• Technology was the strongest performing segment, benefiting from renewed demand in software and digital services.
• Materials detracted the most, affected by the gold sector’s rapid sentiment reversal.

This volatility validated the Fund’s conservative portfolio stance over recent months. We trimmed risk in high-beta holdings and broadened exposure across resilient, high-conviction names.

We continue to build selectively in under-owned sectors showing improving fundamentals despite a weaker macroeconomic backdrop.

Outlook

The near-term outlook remains uncertain as markets adjust to persistent inflation and slowing growth. However, the structural valuation discount across small-cap equities in Australia continues to offer long-term opportunity.

The Fund remains disciplined and research-driven, favouring businesses with tangible earnings, strong balance sheets, and scalable growth potential.

About the Fund

The Datt Small Companies Fund invests in high-quality Australian small-cap companies outside the ASX100. The strategy targets undervalued businesses with sustainable cash flow, prudent capital management, and long-term growth potential.

Applying an independent, research-led investment process, the Fund aims to outperform the S&P/ASX Small Ordinaries Accumulation Index by 5% per annum over five years.

Key Fund details:

• Minimum investment: $50,000
• Management fee: 1.54%
• Performance fee: 20.5% above
• Custodian: HSBC
• Auditor: Ernst & Young
• Trustee: Fundhost

To learn more about this small company investment fund in Australia, contact Daniel Liptak at daniel@datt.com.au or 0419 004 524, or visit the Small Companies Fund page.