Jul-25: Insights

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

JULY 2025 UPDATE

MARKETS

​US equities reached new, driven by strong demand for artificial intelligence (AI), and a boost from changes in the tax regime.

The Fed and Bank of England held rates steady while signalling future cuts.
​
Sterling came under pressure this month with currency exchange rate volatility being a key swing factor this year. 

EQUITIES

​The VT Avastra Global Equity Fund returned +4.98% for the month and +7.32% YTD. 

• Regional switches include replacing Emerging Markets Index ETF with institutional Emerging Markets Index fund to reduce costs of underlying. 

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 +1.75% for the month and +1.46% YTD. 

• There were no changes to the fund 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 +2.41% for the month and +6.26% YTD. 

• Switching from GBP ultrashort bonds to USD ultrashort bonds to balance overall currency exposures. 

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