Jun-25: Insights

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

JUNE 2025 UPDATE

​ MARKETS 

US equities reached all-time highs, driven by a ceasefire agreement between Israel and Iran, strong demand for artificial intelligence (AI), and optimism around potential banking deregulation & tax cuts.
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The Fed and Bank of England held rates steady while signalling future cuts.

The US and China agreed to a trade framework, marking a step toward de-escalating tensions between the two largest trading nations.

​ EQUITIES 

​ The VT Avastra Global Equity Fund returned +1.94% for the month and +2.22% YTD. 

• Factor switches include moving to an equally allocated basket across five Factors including Momentum, Quality, Minimum Volatility, Value & Equal Weight 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 +0.81% for the month and -0.28% YTD. 

• Switching from USD ultrashort allocations to GBP ultrashort allocations to mediate fund currency exposures. 
  
• Switching out from UK Government bonds exposures in favour of shorter dated corporate bonds. ​

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 +0.85% for the month and +3.76% YTD. 

• Switches include reducing allocations to Industrial Metals and GBP & USD Ultra Short Bonds, whilst increasing allocations to Global Real Estate, Copper, World Energy and Global Water. 

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