Apr-25: Insights

​Read the latest Avastra Fund insights on Markets, Equities, Bonds and Alternatives for April 2025.

APRIL 2025 UPDATE

​​For UK professional investors only ​

MARKETS

Markets moved past “peak volatility” when the White House announced a 90 day pause on additional tariffs, fearing a “Truss moment” in US bonds.

The flip flop of tariff policy and global disruption to trade raises uncertainty for businesses and the economy.
​
Slowing trade and selling of US assets put the dollar under pressure.

EQUITIES

The VT Avastra Global Equity Fund returned -1.79% for the month and -4.43% YTD.

• Factor switches include moving from Momentum to Min. Volatility, to provide downside protection in uncertain market conditions.
• Regional positioning sees an increase in Global allocations funded from a reduction in Emerging Markets as trade wars cause instability.
  ​
  

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

BONDS

The VT Avastra Global Fixed Income Fund returned -1.26% for the month and -0.98% YTD.

• Switching from traditional Investment Grade corporate bonds in favour of Convertible bonds which are expected to outperform nominal corporate bonds.
  ​
  

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

ALTERNATIVES

The VT Avastra Global Alternatives Fund returned -1.49% for the month and +1.79% YTD.

• Deploying SONIA-Aligned holdings into Alternatives Strategies to add allocations back towards risk assets, as cash has provided a protection during market downturns.
  ​
  

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