Mar-24: Insights

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

March 2024 Update

​For UK professional investors only

MARKETS

​World equity markets - led by the US - continued their rally on prospects of moderating inflation and falling interest rates.

Inflation is moderating in the US and UK but has potential to tick up again in 2025.
​
Rate cuts are getting closer and will likely target a ‘neutral’ level rather than return to the pre-hike lows. 

​EQUITIES 

The VT Avastra Global Equity Fund returned +3.90% for the month and is +8.16% YTD. During the month we made the following adjustments to the fund: 

• Increased allocations to European Equities as recession risks have subsided and potential for rate cuts from the ECB. 
  
• Sold out from the WS Evenlode Income fund in favour of the BlackRock Global Unconstrained as Global markets outlook remains stronger compared to UK markets. 

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 +1.82% for the month and is +1.05% YTD. During the month we made the following adjustments to the fund: 

• Switched from UK ultrashort to US ultrashort as US inflation is proving stickier and the BoE may cut rates before the Fed. 

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 +2.77% for the month and is 2.70% YTD. During the month we made the following adjustments to the fund: 

• Introduced tilts into Developed Markets Real Estate and Global Clean Energy as valuations look attractive. 

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