Jul-24: Insights

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

July 2024 Update

​​For UK professional investors only 

MARKETS

​After a conspicuous absence, volatility has returned to US equities, which ended flat on the month.

UK Equities remain a useful and contrasting diversifier to US equities owing to different sector, factor and valuation characteristics.

Global and UK Bonds had a strong month on likely cuts in UK and US policy rates.

EQUITIES

The VT Avastra Global Equity Fund returned -1.07% for the month and is +8.65% YTD. During the month we made the following adjustments to the fund:

• Sold out from Communication Services to book profits and allocated to defensive sectors such as Energy and Utilities
  
• Introduced allocations to Quality and Momentum factors funded from S&P Equal Weight and Minimum Volatility Factors. 

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 +0.70% for the month and is +1.39% YTD. There were no changes made to the allocations of the fund.
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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 +1.28% for the month and is +5.56% YTD. During the month we made the following adjustments to the fund:

• Switched out from Global Clean Energy as it remains a high ‘Beta’ sector, in favour of UK Property REITs as changes in the UK’s political landscape are set to benefit the sector. 

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