Feb-24: Insights

Read the latest Avastra Fund insights on Markets, Equities, Bonds and Alternatives for February 2024.

February 2024 Update

​For UK professional investors only

MARKETS 

Strong US earnings and corporate outlook supports markets. 

Bond markets have adjusted to a more realistic expectation as regards the timing of rate cuts. 
​
Geopolitical risks – in Ukraine, Middle East and Taiwan – combined with upcoming US and UK elections remain acute and could destabilise markets and/or rekindle inflation. 

​EQUITIES 

​The VT Avastra Global Equity Fund returned +2.96% for the month and is + 4.10% YTD. During the month we made the following adjustments to the fund: 

• Reduced allocation from UK equities in favour of Global Equities as the UK faces recessionary headwinds and lacks real growth opportunities ​

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 -0.26% for the month and is -0.76% YTD. During the month we made the following adjustments to the fund: 

• Increased allocation to UK Index-Linked Gilts and UK All Stocks Gilts to extend duration ahead of BoE Rate Cuts 

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 +0.09% for the month and is -0.07% YTD. During the month we made the following adjustments to the fund: 

• Increased allocations to Listed Private Equity markets from reductions in Money Market Funds as earnings remain resilient despite high interest rates. 

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