DATT

CAPITAL
INVESTOR PRESENTATION
 DISCLAIMER

The Datt Capital Absolute Return Fund (Fund) is available to Wholesale Investors only. The information provided is only for Wholesale
Investors. Datt Capital Pty Ltd (ABN 37 124 330 865 ) CAR #001264886 of Fundhost Limited AFSL 233045) (Datt Capital) is the
Investment Manager of the Fund. Fundhost Limited (AFSL 233045) is the issuer and trustee of the Fund. An investment in the Fund will
only be available through a valid application form attached to the Information Memorandum. Before making any decision to make or hold
any investment in the Fund you should consider the Information Memorandum in full. The information contained in this document is not
intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to
law or regulation, or which would subject Datt Capital or Fundhost Limited to any registration or other requirement within such jurisdiction
or country. Datt Capital may provide general information to help you understand our investment approach. Any financial advice we provide
has not considered your personal circumstances and may not be suitable for you. To the extent permitted by law, Datt Capital and
Fundhost, their officers, employees, consultants, advisers and authorised representatives, are not liable for any loss or damage arising as
a result of any reliance placed on this document. Information has been obtained from sources believed to be reliable, but we do not
represent it is accurate or complete, and it should not be relied upon as such. Datt Capital and Fundhost do not guarantee investment
performance or distributions, and the value of your investment may rise or fall. Past performance is not an indicator of future performance.

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Fund Overview

Inception Date
August, 2018

Investment Strategy
The fund deploys a long-only investment approach that focuses on capital
preservation & absolute wealth accumulation, which since inception has
returned over 17% per annum after fees.

Investment Objectives
o Minimise the risk of permanent capital loss and;
o Generate double digit net returns throughout the economic cycle.

Investment Team’s Stake

Fund manager and associates currently remain the largest unit holders within the
Absolute Return Fund, providing direct alignment with investors
 Absolute Return Fund

concentrates on long-only equity and fixed income

ideas in Australian markets. The mandate is broad and allows investment within
a range of assets that may not be accessible to other investors.

has a proven investment strategy that has delivered an average

compound return of

Fund Performance As at 30 Jun 2021 Out/Under Performance

vs XJOA
1-Year Return 26.86% 21.59%
2-Year Return p.a. 25.03% 19.49%
Since Inception 58.77% 40.72%
Compound Return p.a. 17.28% 11.39%
Past performance is not a reliable indicator of future performance
XJOA – ASX 200 Index

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 Value Proposition
The Fund has

The Fund has

Datt Capital continues to deliver for investors via its investment

process and portfolio construction. The fund is , investing solely in
the best opportunities that provide the .

Fund Details As at 30 Jun 2021

Standard Deviation 18.43

Sortino Ratio 1.43
Sharpe Ratio 0.92
Fund Skew (0.17)
Fund Kurtosis 0.96
Up Capture 89.44%
Down Capture 53.98%

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 Recent Awards
Australian Fund Monitors Ranks Datt Capital The No. 1 Fund

The Datt Capital Absolute Return Fund has been recognised as the No. 1 Australian
Equity Fund as at the end of September 2020; evaluated over a rolling 12-month
period using Fund Monitors risk adjusted model.

The Fund has achieved a 12-month rolling return of +35.6% vs a fall of -8.15% for the
ASX 200 Total Return Index over the same period; outperforming by +43.75% (as of
31st October 2020.)

“Despite being relatively new, we are very pleased to receive this ranking by Fund Monitors,
a well-recognised specialist fund research platform. We consider it a great achievement to
have been the front runner in a large competitive field of around 180 peers”. Fund Monitors
2020
 Our Team
Investment Team Support Team

Emanuel Datt – Principal Lachlan Apperly – Business Development

Emanuel has had experience in financial markets since 2006. Prior to
founding Datt Capital in 2017, Emanuel ran the Datt Group, a family
conglomerate of businesses in the Commercial Real Estate, Tourism and
Medical fields; which have consequently been liquidated and turned into
a family office. Emanuel has obtained a Bachelor of Commerce
(International Business) from Deakin University, a Master in Applied
Finance (Corporate Finance) from Macquarie University and is a
graduate of the Australian Institute of Company Directors.
Lachlan leads the firm's Business Development operations, targeting
growth both in Australia and internationally. Lachlan is also
responsible for servicing the needs of our Investor Clients and
ensuring a positive, professional and seamless experience throughout
their transactions and ongoing dealings with Datt Capital.

Tony Yi Gu – Investment Analyst

Tony joined Datt Capital in 2017 leads the firm’s research and dealing
functions. Tony is responsible for performing due diligence on all
investment opportunities. Prior to joining Datt Capital, Tony had an
entrepreneurial background co-founding several start-ups in Shanghai
and acted as the Chief Operating Officer for a leading automotive
component supplier in China.
Chris Lu – Junior Analyst
At Datt Capital, Chris is a junior analyst for the firm's research functions.
Prior to commencing his role at Datt Capital, Chris interned at TMGM, a
world renowned foreign exchange broker based in Sydney. Chris has
completed a Bachelor of Commerce (Finance & Economics) from the
University of Melbourne.
Rakshya Niraula– Administration &
Operations
Rakshya is responsible for the internal reporting, compliance,
operations and administration functions at Datt Capital. Prior to
joining Datt Capital, Rakshya held varied administration and
accounting roles within the automotive and consulting industries.
Rakshya has completed a Bachelor of Business Administration from
Tribhuvan University (Nepal) and a Masters of Professional
Accounting from Charles Sturt University.

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 A Unique Investment Approach

By investing across multiple asset classes we are able to

. This emphasis on investing defensively
.

Our investments can be grouped into 3 key areas:

– Agriculture, precious metals,
fixed income, private debt and infrastructure that typically provide a
lower correlation to other asset classes.
– Companies with unique business models with
strong potential to compound capital for longer periods of time. Ability to
grow their way towards market leadership and global audiences.
– Low
risk turnarounds, mispriced asset rich companies, stocks with exposure
to markets with projected future supply constraints, spin-offs,
privatisations.

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 Our Advantage

of over 1,000 ASX listed and private

companies researched; this continues to grow.

. Bottom up approach to
investment evaluation combined with top down risk management.

allows larger equity exposure when

cheap, larger defensive allocation when expensive. Staying agile and
opportunistic.

Investment process that :

dare to dream. to information collection and research.

, by culture, ethnicity, gender and age

fund manager with .

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 What Makes Us Different

We aim to achieve double digit The investment team are the We control our risk by
net returns per annum, which Fund’s largest investors, where
should beat most indices over providing possible, not solely in equities.
time. .

The fund’s portfolio is We investments in We to with

than the typical illiquid instruments, that have investee company management
investment fund. a fixed exit. teams to maximise our return

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 A More Focused Portfolio
One of our central beliefs is . As such we
believe that appropriate position sizing does

Studies have shown that the benefits of diversification are limited once a
portfolio has over 12 positions. A
due to reduced
correlation between asset classes.

Our own research indicates that the

. Most active managers have a maximum limit of
5%, which we utilise as our base case in position evaluation.

We would rather exposure to

. This selective approach assists in reducing
risk by keeping our powder dry in times when good opportunities are scarce.

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 Absolute Return Fund: Portfolio

Biotech Mineral Explorers

6% 10%
Sector Exposure As at 30 Sep 2021
Financal Services
13%
Mineral Developers 25%

Mineral Producers 20%

Cash
2%
Retail 17% Mineral Developers
25%
Financial Services 13%

Mineral Explorers 10%

Retail
Fixed Income 7% 17%

Biotech 6%

Cash 2% Fixed Income

7%

Mineral Producers
20%
 Investment Philosophy

GROWTH DISCIPLINE ADAPTABLE

We seek to find high quality and growing companies
with exposure to positive tailwinds run by honest
and competent management teams that deliver
results.
We also seek growth in opportunities with
undervalued present or future cash flows; or that
may be catalyst driven.
We like to invest where others are not and capital is
scarce.
Discipline & patience to invest only in exceptional
opportunities
Markets are fiercely competitive and combined with
limited resources makes it difficult to find attractive
investments – where the risk/return equation is
extremely favourable.
Because exceptional opportunities are rare, we
want to make meaningful investments when such
opportunities are identified.
Adapt to change and understand new paradigms.
Adapting to and anticipating change is critical to
achieving adequate and durable long term returns.
We strive to achieve optimal investment outcomes
by diversifying our exposure across asset classes
and not being transfixed to concepts such as ‘value’
or ‘growth’.
Remain agile and let market volatility work to our
advantage.

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 Investment Process & Criteria

IDEA GENERATION
• Quantitative screening — using multiple factors eg. market cap, earnings growth and quality, yield, cashflow etc.
• Primary research by investment team — discovered by industry analysis, comparison of peers, review of academic literature, Datt
Capital Research Library & use of intellectual property.
• Investment opportunities and ideas offered by qualified existing partners

POSITION SELECTION
• Bottom up due diligence process using a mosaic approach towards information collection
• Understanding the catalysts, key value drivers/levers and optionality potentially embedded within the position or business.
• Focus on the best companies and opportunities in a particular sector or theme; use of investment checklists

QUALITY MANAGEMENT & POSITIVE MOMENTUM

• We look for honest, intelligent and flexible management teams that are not afraid of change or improvement.
• Well structured remuneration packages and alignment of incentives with shareholders are strongly preferred
• Positive momentum in terms of business progress and market recognition

ATTRACTIVE PROJECTED RETURNS

• We only invest when the prospective returns are attractive relative to other investment opportunities
• Returns are compared across capital structure, to accurately pinpoint pockets of pricing inefficiency
• Our success depends on exercising patience and discipline to only invest in situations that meet our criteria

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 Vigilance Towards Risk
Above all, we believe is
central to achieving solid investment returns.

We manage portfolio and market risk by:

IMPLEMENT
• Investing in multiple asset classes across
the capital structure;
THINGS THINGS • Using diverse investment strategies and
SELECT EVALUATE
WE CAN THAT holding periods;
CONTROL MATTER • Utilise time and price stops;
• Maintain position limits and;
• Actively manage our asset allocation.
ASSESS IDENTIFY

We
to unfavourable outcomes and
market conditions.
Risk Assessment Process What we focus on

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 Investment Decision

POSITION RISK CONTROL

MANAGEMENT & PROJECTED INVESTMENT
SPECIFIC
MOMENTUM RETURN PROCESS DECISION
FACTORS

Segmenting each component of a potential investment allows us to accurately and quickly respond to changes in the market
environment; .

Uncompromising adherence to our Investment Principles we believe

We are loss averse and aim to hit a lot of low risk ‘singles’
with occasional investments in higher risk opportunities. Survival and longevity are primary objectives, we are happy to be
patient and sit in cash until the right opportunity presents itself.

The Principal has for all investment decisions made and for the Funds return to investors.

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 PORTFOLIO CONSTRUCTION
• Weigh themes in the portfolio based on:
• Risk and relative projected return
• Level of conviction
• Maturity in structural theme and/or investment
opportunity
• Rebalance portfolio periodically and assess alternative
opportunities at hand.
• A high level of portfolio concentration given our rigorous
investment process.
• A higher than typical weighting to cash given our risk
aversion and opportunistic style.
• Portfolio typically a balance of low-risk, cash generative
investments and higher risk equity positions.
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• Position Limits are:
• 20% for any single fixed interest or private debt
position (at cost)
• 15% for any single equity holding (at cost)
• 10% for any single derivative exposure
• 5% minimum cash holding
• Asset Allocation ranges (at cost):
• Fixed Interest: 0-75%
• Equities: 0-80%
• Cash: 5-50%
• Australian markets only. Risks and Projected Returns
can be more accurately assessed in a familiar
commercial and legal environment, with exposure to
fewer negative externalities eg. FX risk.
 Structural Investment Themes

• The investment team

.
START UP/
INCUBATION GROWTH

• This refinement assists in obtaining exposure to

PERIOD

companies and sectors

• We investigate and
assess the merits of both bulls and bear arguments.
RESTRUCTURE/ MATURITY
REINVENTION
• Where are we in the lifecycle
of the theme or trend?
DECLINE
• Ask the question, where and
how could we be wrong?

The Industry/Company Life Cycle

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 Performance
Absolute Return Fund – Since Inception
$180,000.00

$160,000.00

$140,000.00

$120,000.00

$100,000.00

$80,000.00

$60,000.00
Oct 2019 Apr Jul Oct 2020 Apr Jul Oct 2021 Apr

Past performance is not a reliable indicator of future performance

Datt Capital Absolute RBA Cash Rate Out/Under

As at Income Capital
Return Fund Plus 5% performance(i)
Financial YTD 30 June 2021 26.86% 5.27% 21.59% 1.12% 25.74%
2 years p.a. 30 June 2021 25.03% 5.54% 19.49% 1.65% 23.38%
Since inception 30 June 2021 58.77% 18.05% 40.72% 7.84% 50.93%
Compound annual return 30 June 2021 17.28% 5.89% 11.39% 2.64% 14.64%
(Since inception)

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 FUND SUMMARY
Fund Summary Summary of Terms
FUND STYLE: Long only, Absolute Return MIN INVESTMENT: $100,000
DOMICILE: Australia MANAGEMENT FEE: 1.025% (Annual)
MANAGER: Datt Capital Pty Ltd PERFORMANCE FEE: 20.5% over Hurdle Rate
CURRENCY: Australian Dollar HURDLE RATE: RBA Cash rate plus 5%
INCEPTION: August 2018 HIGH WATER MARK: Yes
CUSTODIAN: NAB SUBSCRIPTIONS: Monthly
AUDITOR: Ernst & Young WITHDRAWALS: Quarterly
ADMINISTRATOR: FUNDHOST REPORTING: Monthly
LOCK-UP: No
WITHDRAWAL FEE: 2%,1%, for first two years

Firm Management & Investment Team Investor Enquiries

Emanuel Datt — Principal Lachlan Apperly – Investor Relations
+61409 903 060 +61427 368 950
emanuel@datt.com.au lachlan@datt.com.au
Tony Gu — Investment Analyst Level 11, 1 Queens Road
Melbourne Victoria Australia 3004

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