Mar-25: Insights

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

March 2025 Update

​​For UK professional investors only 

MARKETS

​Trump’s “Tariff Tuesday” and the risk of a trade war has rattled US (and hence Global) equity markets.

Tariff uncertainty could potentially disrupt economic and earnings growth and could be inflationary in the short-run.

UK & US Central Banks kept interest rates on hold as policy makers strike a balance between supporting growth and capping inflation.

EQUITIES

​The VT Avastra Global Equity Fund returned -4.86% for the month and -2.69% YTD.

• Sector switches include introducing Information Technology and selling out from Consumer Staples as the defensive nature has protected the fund from initial volatility
  
• Factor switches include moving from Min. Volatility to Momentum, to take advantage of any future recoveries
  
• Regional positioning sees an increase in European allocations as fiscal spending could boost the wider economy
  
• Taking profits from positions in Berkshire Hathaway and HANETF Future of Defence. 

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 -1.34% for the month and +0.28% YTD.

• Switching from traditional Investment Grade corporate bonds in favour of Convertible bonds which are expected to outperform nominal 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 -0.23% for the month and +3.33% YTD.

• Taking profits from positions in Berkshire Hathaway to introduce MGTS Downing Fund which has defensive characteristics and aims to provide a target return over the long term. 

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