APR-26: Insights

Read the latest Avastra Fund insights on Markets, Equities, Bonds and Alternatives for April 2026.

APRIL 2026 UPDATE

MARKETS

​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.

EQUITIES

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.

BONDS

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.

ALTERNATIVES

​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.