Feb-25: Insights

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

February 2025 Update

​​For UK professional investors only 

MARKETS

​Tech stocks faced renewed volatility on valuation concerns. Nvidia’s earnings beat expectations, but its shares declined on concerns of slowing growth and rising competition.

Bond values increased as yields continued to decline, with the UK 10-year Gilt yield dropping to 4.48% and the 10-year US Treasury yield falling to 4.21%.

Geopolitical risks intensified as the US threatened new tariffs on imports from Canada, Mexico, and China. A diplomatic spat between Trump and Zelensky questioned US support for Ukraine.

EQUITIES

The VT Avastra Global Equity Fund returned -2.17% for the month and +2.28% YTD.

• Factor switch includes selling out from World Small Cap and S&P 500 Equal Weight and moving into Minimum Volatility factor as smaller companies are more likely to struggle against Trumps’ Tariffs. 

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 +1.65% YTD.

• Fund switch to access cheaper allocation to Emerging Market Debt 
• Switching from USD Ultrashort to GBP Ultrashort as Trumps’ Tariffs could lead to a structural weakness of the US dollar.

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 -0.39% for the month and +3.57% YTD. 

• Selling out from The Ruffer Investment Company as returns have been lack lustre and haven’t provided sufficient downside protection. 

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