Aug-25: Insights

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

AUGUST 2025 UPDATE

MARKETS

​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). 
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The risk of stagnant growth and sticky inflation (which could re-accelerate) means that “stagflation” remains a concern for the UK. 

EQUITIES

​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. 

BONDS

​​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. 

ALTERNATIVES

​ 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.