Jan-24: Insights

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

Preparing to Pivot

For UK professional investors only

MARKETS

The resilience of the US economy despite a moderate deceleration in growth is increasing
confidence in US equity valuations.

Equities and bonds remain buoyed by the potential pivot in interest rate policy.
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Geopolitical risks – in Ukraine, Middle East and Taiwan – combined with upcoming US and UK elections could destabilise markets and/or rekindle inflation.

US Equities were up +2.31% and UK Equities were down -1.21%, in GBP terms.

EQUITIES

For the VT Avastra Global Equity Fund, there was positive performance of +1.11% in Jan-24. We
continue to review fund holdings for a potential pivot to a lower interest rate environment.

BONDS

​For the VT Avastra Global Fixed Income Fund, there was slight negative performance of -0.50% in Jan-24, driven by declining US bond yields in anticipation of the potential policy pivot.  We are looking to position the fund to take advantage of the higher, near-term yield available. 

ALTERNATIVES

For the VT Avastra Global Alternatives Fund, there was slight negative performance of -0.15% in Jan-
24, reflecting the lower risk-return characteristics of the current allocation. We continue to consider ways to position the fund to ensure both asset-based and risk-based diversification.