Feb-26: Insights

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

FEBRUARY 2026 UPDATE

​MARKETS

AI disruption fears spread from technology into real estate, logistics and financial services, driving a rotation into non-US equity markets including Asia, Japan and the UK.

US Treasuries posted their best month in a year as growth concerns mounted and a knife edge 5-4 Bank of England vote drove UK gilt yields sharply lower.
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The Supreme Court struck down broad tariffs only for a replacement 15% global levy to be announced the same day; Gold extended its YTD run to +21.70%. 

EQUITIES

The VT Avastra Global Equity Fund returned +4.06% for the month and 4.35% for the year. 

• Regional changes include introducing allocations to Japanese GBP Hedged equities, selling out from unhedged positions. 
• Sector switches include moving out from Utilities sector, in favour of Industrials sector. 

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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 +1.50% for the month and +0.91% for the year. 

• No changes were made 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 +2.36% for the month and +4.50% for the year. 

• Changes included selling out from GBP Ultrashort Strategies in favour of longer dated UK Index Linked Gilts. 

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