Small Companies Fund Performance: July 2025

Rebound with Strong Performance

The Datt Small Companies Fund gained 8.72% in July 2025, significantly outperforming the S&P/ASX Small Ordinaries Accumulation Index, which rose 2.82%.

This strong result was supported by broad portfolio gains, with technology and healthcare sectors delivering the highest contributions. The Fund continues to apply a disciplined, independent research process to identify undervalued companies in Australia with long-term growth potential.

Performance Highlights for July 2025

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

To summarise:

• To summarise:
• Net return: +8.72% in July
• 12-month return: +39.15%
• Since inception (p.a.): 33.67% vs +14.75% benchmark
• Total since inception: +70.29%

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.

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Key Drivers in July

• Technology and healthcare holdings were the largest contributors to monthly returns.
• Resources exposure was a minor detractor but had limited impact given prudent risk trimming.
• The Fund closed July with 23 positions, with the top five accounting for 43% of portfolio value.

Market Commentary

The S&P/ASX 200 Index gained more than 2% in July, while resource companies lagged. Large caps continued to trade on expanding valuation multiples, leaving a wide gap between large and small cap companies.

We see this differential as an ongoing opportunity for active fund managers in Australia. In our view, the current environment favours skilled stock pickers who can uncover overlooked investment opportunities in the small-cap sector.

The Outlook

Following the portfolio repositioning in June, July was a low turnover month. The Fund remains well placed heading into the August reporting season, with risk appropriately trimmed.

Australian small companies continue to provide long-term, high-conviction opportunities for investors seeking exposure to sectors underrepresented in large cap indices.

About the Datt Small Companies Fund

The Datt Small Companies Fund invests in high-quality, undervalued companies outside the ASX100. Our objective is to identify tomorrow’s leaders: scalable businesses with strong fundamentals and risk-adjusted return potential. As an independent investment fund manager in Australia, we are deeply aligned with our investors, co-investing alongside them to ensure shared outcomes.