Jan-25: Insights

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

January 2025 Update

​​For UK professional investors only 

MARKETS

​Tech volatility surged as DeepSeek’s AI breakthrough hit Nvidia, but US equities remained resilient.
​
Declining bond yields supported fixed-income markets, with US and UK 10-year yields both falling to 4.54%.

Geopolitical risks persist as US trade tensions escalate with new tariffs on Mexico and Canada. 

EQUITIES

​The VT Avastra Global Equity Fund returned +4.55% for the month.

• Reducing allocations to Asian Markets in favour of broader Global exposures within the regional strategy
  
• Sector switches include introducing Utilities and Consumer Staples funded from Energy and Information Technology
  
• Factor switch includes selling out from Momentum in favour of Value Factor 

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 +1.38% for the month.

• UK Gilts and Inflation Linked Gilts were sold to introduce ultrashort GBP and USD bonds
  
• COCO bonds were introduced as a replacement for USD corporate bonds, on better yield offerings

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 +3.98% for the month.

• Trimming allocations from Commodities exposures due to a strong run up over the last few months. Moving allocations to cash until further buying opportunities become available.

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