Datt Small Companies Fund Performance – September 2025

Small Caps Continue Their Outperformance

The Datt Small Companies Fund delivered a 10.21% return in September, outperforming its benchmark, the S&P/ASX Small Ordinaries Accumulation Index, which gained 3.44%. This marks another strong month for small caps, supported by improving investor sentiment and selective strength across technology and materials.

Since inception, the Fund has returned 98.00%, or 40.68% per annum, versus the benchmark’s 44.34% total gain.

Full performance snapshot:

• 1 month: +10.21%
• 3 months: +26.42%
• 6 months: +34.56%
• 1 year: +61.83%
• Since inception (p.a): +40.68%
• Since inception (total): +98%

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

Disclaimer:

• The Fund’s benchmark is the S&P/ASX Small Ordinaries Accumulation Index (XSOA).
• The Fund commenced in October 2023. Performance is reported net of all fees and expenses and reflects actual returns since inception.
• Past performance is not a reliable indicator of future results. Investment is limited to wholesale and sophisticated investors under Australian law.

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

Market Overview

Australian equities posted a mixed performance in September. The S&P/ASX 200 fell 1.4%, while the Small Ords Index rose 3.44%, reflecting renewed appetite for smaller, growth-oriented companies. Investor confidence was underpinned by a resilient domestic economy, unemployment remains low, wage growth continues to outpace inflation, and the RBA maintained its cash rate at 3.60%.

Commodity prices strengthened, particularly in precious and industrial metals, as investors looked for real-asset exposure in an environment of moderate inflation expectations.

Portfolio Insights

At month-end, 83% of the Fund’s capital was deployed, with strongest contributions coming from the technology and materials sectors. These holdings benefited from improving margins and rising demand expectations.

The healthcare segment continued to detract modestly from returns, though valuations are increasingly attractive for selective exposure.

We have maintained a measured, risk-aware positioning, trimming gains in stronger names and broadening exposure across high-conviction holdings. The Fund continues to build selectively in under-owned, fundamentally improving businesses that exhibit strong cash generation and disciplined capital management.

Outlook

Despite a buoyant market backdrop, we remain conservatively positioned. We continue to favour companies with tangible earnings momentum and scalable business models rather than speculative growth stories.

With a significant valuation gap persisting between large and small caps, the environment remains favourable for active managers with strong research capability and discipline.

Our focus is on identifying high-quality, undervalued small companies in Australia with long-term wealth creation potential.

About the Fund

The Datt Small Companies Fund invests in high-quality businesses outside the ASX100 with strong fundamentals and scalable long-term growth. Since launched in 2023, the Fund applies independent, independent process to capture opportunities in under-researched and undervalued areas of the market.

If you want to learn more about the Absolute Return Fund, visit the Fund Page or contact our Head of Distribution, Daniel Liptak, on 0419 004 524 or via email at daniel@datt.com.au.