Global equities rose for a ninth consecutive week in May, with Asia and Tech leading the way, as 
markets focused on the AI revolution & strong corporate earnings rather than the ongoing Strait of 
Hormuz closure.

UK 30-year gilt yields hit their highest since 1998 after Reform’s local election gains raised fears of a 
Labour leadership change and looser fiscal policy, before recovering sharply as Andy Burnham 
committed to the fiscal rules and oil prices fell.
​
A tentative 60-day ceasefire extension was agreed on the final Friday of the month, but Iran said it 
would charge fees for Strait navigation, stopping well short of full reopening, and infrastructure 
damage is expected to weigh on energy supply well into 2027.

The VT Avastra Global Equity Fund returned +5.01% for the month and +7.50% for the year.

• Regional switches include selling out from World Equities in favour of Asia Pacific equities
• Manager changes include selling out from global active strategies in favour of Semiconductor 

and Lithium Production thematics.
The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager 
strategies.

The VT Avastra Global Fixed Income Fund returned +0.75% for the month and -0.43% for the year.

• No changes were made this month.

The fund provides an active allocation approach to managing duration and credit quality exposure 
within the Bond sector.

The VT Avastra Global Alternatives Fund returned +2.32% for the month and +6.06% for the year.

• Changes include selling out from Mortgage-Backed Securities, Ultrashort Bonds and Brent 

Crude, in favour of Physical precious metals allocations.
The fund provides both asset-based and risk-based diversification, as an alternative to equities and 
bonds

​A ceasefire agreed in the second week of April ended active US-Israeli strikes on Iran and triggered a
sharp rally, with the S&P 500 rising over 10% in April. Oil price remains volatile, but equity markets are looking through this.
Asia ex-Japan led all equity markets, as peace optimism and a weakening dollar drove a powerful recovery in the region hardest hit during the March sell-off.
Bond markets stabilised but offered little relief, with UK 10-year gilt yields edging higher to 5.01% as the Strait of Hormuz remained effectively closed and both the BoE and ECB signalled rates would stay
on hold or move higher.

The VT Avastra Global Equity Fund returned +3.83% for the month and +2.36% for the year.

• Sector switches include reducing Energy sector holdings and selling out of Health Care in favour of IT and Communication Services
• Factor changes include increasing allocations to Momentum factor whilst selling out from Equal Weight Factor
• Selling out from cash positions for risk on posture and introducing Smart Grid Infrastructure strategy.

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager
strategies.

The VT Avastra Global Fixed Income Fund returned +0.02% for the month and -1.18% for the year.

• Changes included reducing EM USD exposures in favour of EM Local debt and increasing allocations to high yield global bonds and AT1 Coco bonds.

The fund provides an active allocation approach to managing duration and credit quality exposure
within the Bond sector.

​The VT Avastra Global Alternatives Fund returned +0.30% for the month and +3.65% for the year.

• Changes include selling out from SONIA Aligned strategies in favour of Equal Weight strategy, Global Clean Energy and broad commodities exposure.

The fund provides both asset-based and risk-based diversification, as an alternative to equities and
bonds.

US and Israeli strikes on Iran triggered a global equity sell-off and oil shock, reversing the year’s “Sell America, Buy Asia” rotation as energy-import-dependent markets bore the brunt.

Bond markets suffered one of their worst months in years as surging oil pushed UK gilt yields to their highest since 2008 and priced out all expected Fed rate cuts. Private credit funds restricted redemptions.
​
Commodities surged +14.55% MTD (+27.04% YTD) as Brent oil spiked above $100, the US Dollar (a traditional safe-haven asset) posted its strongest month since October 2024. 

​The VT Avastra Global Equity Fund returned -5.53% for the month and 1.42% for the year. 

• Regional changes include introducing allocations to UK Equity whilst selling out from World Equities. 
  
• Sector switches include moving out from Industrials sector, in favour of Energy sector. 
  
• Increasing allocations to Ultrashort GBP and USD whilst selling out from US, EU and World Small Cap. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​The VT Avastra Global Fixed Income Fund returned -2.08% for the month and -1.20% for the year. 

• Changes included selling out from longer dated bonds and CoCos in favour of USD and GBP Ultrashort bonds. 
  
• Increasing allocations to EM USD strategies as well. ​

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

The VT Avastra Global Alternatives Fund returned -1.11% for the month and +3.34% for the year. 

• Changes included increasing allocations to Equal Weight strategy whilst selling out from GBP Ultrashort Bonds. As well as selling out from Real Estate, Infrastructure and Private Equity in favour of USD Ultrashort Bonds, broad commodities basket and Natural Gas exposures. ​

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

AI disruption fears spread from technology into real estate, logistics and financial services, driving a rotation into non-US equity markets including Asia, Japan and the UK.

US Treasuries posted their best month in a year as growth concerns mounted and a knife edge 5-4 Bank of England vote drove UK gilt yields sharply lower.
​
The Supreme Court struck down broad tariffs only for a replacement 15% global levy to be announced the same day; Gold extended its YTD run to +21.70%. 

The VT Avastra Global Equity Fund returned +4.06% for the month and 4.35% for the year. 

• Regional changes include introducing allocations to Japanese GBP Hedged equities, selling out from unhedged positions. 
• Sector switches include moving out from Utilities sector, in favour of Industrials sector. 

​
The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​ The VT Avastra Global Fixed Income Fund returned +1.50% for the month and +0.91% for the year. 

• No changes were made this month. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

​ The VT Avastra Global Alternatives Fund returned +2.36% for the month and +4.50% for the year. 

• Changes included selling out from GBP Ultrashort Strategies in favour of longer dated UK Index Linked Gilts. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

Concerns around the debasement of the US Dollar led to Euro and Sterling strength, and a blistering 
run in Gold & Precious metals.

As earnings growth gathers momentum, investors are rotating out from US technology sector to other 
parts of the equity market where valuations are less stretched.
​
America’s “Donroe Doctrine” led to regime change in Venezuela and risked splitting allies over 
Greenland.

The VT Avastra Global Equity Fund returned +0.28% for the month.

• Regional changes include increasing allocations to S&P 500 Equal Weight and EM ex China 

whilst reducing S&P 500 Index exposures.

• Sector switches include moving out from IT and Comm. Services in favour of Financials and 

Utilities

• Factor switches include moving out from Momentum in favour of Value.
• Manager switch includes introducing Deep Buffer strategies in place of S&P 500 Top 20.

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager 
strategies

The VT Avastra Global Fixed Income Fund returned -0.58% for the month.

• Switches include partially moving from EM USD Debt to EM Local currency debt and moving 

from USD ultrashort to GBP ultrashort strategies.
The fund provides an active allocation approach to managing duration and credit quality exposure 
within the Bond sector

The VT Avastra Global Alternatives Fund returned +2.10% for the month.

• Changes included selling out from GBP Ultrashort Strategies in favour of Listed Private Equity 

and Copper exposures.
The fund provides both asset-based and risk-based diversification, as an alternative to equities and 
bonds.

​Sterling strength weighed on overseas returns despite positive local market performance in several regions.

Bond markets saw yields move higher, with UK and US 10-year yields rising modestly.
​ 
US growth surprised to the upside and inflation continued to moderate, while UK growth remained subdued. Geopolitical risks remained elevated. 

​The VT Avastra Global Equity Fund returned -0.18% for the month and +12.92% YTD. 

• There were no changes to the fund this month. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​The VT Avastra Global Fixed Income Fund returned -0.33% for the month and +4.06% YTD.

• There were no changes to the fund this month. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

The VT Avastra Global Alternatives Fund returned +0.05% for the month and +14.15% YTD. 

• There were no changes to the fund this month. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

​Equity markets were volatile in November, with global equities ending lower as risk appetite weakened across risk assets, while UK equity income remained resilient during the global market turmoil 

The UK Budget was announced without triggering significant market volatility. Gilts yields remained range bound and Pound Sterling avoided a post-Budget sell-off. 
​
The US dollar weakened and gold posted monthly gains as investors increasingly priced a more dovish Fed rate path. 

​The VT Avastra Global Equity Fund returned -0.08% for the month and +13.13% YTD. 

• Sector switches include increasing allocations to Technology and Communication Services and moving away from Financials and Utilities. 
  
• Manager changes include introducing S&P 500 Top 20 exposure. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​The VT Avastra Global Fixed Income Fund returned +0.17% for the month and +4.40% YTD. 

• There were no changes to the fund this month. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

​The VT Avastra Global Alternatives Fund returned +0.62% for the month and +14.09% YTD. 

• There were no changes to the fund this month. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

​Equity markets posted strong October gains, with global equities rising amid a rally in the US and record highs in the UK and Asia.

US tech stocks delivered better-than-expected earnings, driven by cloud computing growth. 
​
The US and China agreed a one-year trade truce, postponing further tariffs and export controls, removing short-term uncertainty while structural issues remain unresolved. 

​The VT Avastra Global Equity Fund returned +3.90% for the month and +13.22% YTD. 

• Manager switches include selling out from Blackrock Global Unconstrained and Virtus US Small Cap in favour of Amundi Prime Global and Invesco Global Equity Income trust. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​The VT Avastra Global Fixed Income Fund returned +1.46% for the month and +4.22% YTD. 

• Switches include selling out from Global Convertible Bonds in favour of short-dated UK gilts. Switches also include selling out GBP ultrashort in favour of USD ultrashort. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

The VT Avastra Global Alternatives Fund returned +0.42% for the month and +6.71% YTD. 

• Switches include selling out from Gold and Equal weight strategy to GBP Ultrashort. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

​Global equity markets continued their recovery, as US equities hit new highs on AI productivity expectations, earnings resilience and US rate cut expectations. Non-US markets also delivered strong returns.

The focus on the potential for productivity gains from the AI revolution and resulting earnings growth has powered equities higher, outweighing the multiple geopolitical risk factors.
​
UK longer-dated bonds remain under pressure caught between downside risks to growth, upside risks to inflation and the UK’s fiscal position. 

The VT Avastra Global Equity Fund returned +2.07% for the month and +8.97% YTD. 

• There were no changes to the fund this month. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​The VT Avastra Global Fixed Income Fund returned +0.99% for the month and +2.72% YTD. 

• There were no changes to the fund this month. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

The VT Avastra Global Alternatives Fund returned +3.08% for the month and +10.00% YTD. 

• Switches include selling out from World Energy Sector into Physical Gold. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.

​Global equity markets ended flat on the month, having hit new highs earlier in the month with the US underpinned by earnings growth and the UK supported by expanding valuation multiples.

The BoE cut rates. The Fed held rates steady but signalled a September cut. Despite the rate cut, both US and UK long-dated bond yields have been volatile on fears of 1) debt indigestion, 2) fiscal pressure (UK) and 3) fears Central Bank independence (US). 
​
The risk of stagnant growth and sticky inflation (which could re-accelerate) means that “stagflation” remains a concern for the UK. 

​The VT Avastra Global Equity Fund returned -0.52% for the month and +6.76% YTD. 

• Sector switches include adding allocations to Utilities and Health Care and moving away from Information Technology. 

The fund provides a “4-in-1” active allocation strategy across Regional, Sector, Factor and Manager strategies. 

​​The VT Avastra Global Fixed Income Fund returned +0.25% for the month and +1.72% YTD. 

• There were no changes to the fund this month. 

The fund provides an active allocation approach to managing duration and credit quality exposure within the Bond sector. 

​ The VT Avastra Global Alternatives Fund returned +0.42% for the month and +6.71% YTD. 

• Switches include selling out from money market strategies into Gold. 

The fund provides both asset-based and risk-based diversification, as an alternative to equities and bonds.