Mar-26: Insights

Read the latest Avastra Fund insights on Markets, Equities, Bonds and Alternatives for March 2026.

MARCH 2026 UPDATE

MARKETS

US and Israeli strikes on Iran triggered a global equity sell-off and oil shock, reversing the year’s “Sell America, Buy Asia” rotation as energy-import-dependent markets bore the brunt.

Bond markets suffered one of their worst months in years as surging oil pushed UK gilt yields to their highest since 2008 and priced out all expected Fed rate cuts. Private credit funds restricted redemptions.
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Commodities surged +14.55% MTD (+27.04% YTD) as Brent oil spiked above $100, the US Dollar (a traditional safe-haven asset) posted its strongest month since October 2024. 

EQUITIES

​The VT Avastra Global Equity Fund returned -5.53% for the month and 1.42% for the year. 

• Regional changes include introducing allocations to UK Equity whilst selling out from World Equities. 
  
• Sector switches include moving out from Industrials sector, in favour of Energy sector. 
  
• Increasing allocations to Ultrashort GBP and USD whilst selling out from US, EU and World Small Cap. 

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 -2.08% for the month and -1.20% for the year. 

• Changes included selling out from longer dated bonds and CoCos in favour of USD and GBP Ultrashort bonds. 
  
• Increasing allocations to EM USD strategies as well. ​

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 -1.11% for the month and +3.34% for the year. 

• Changes included increasing allocations to Equal Weight strategy whilst selling out from GBP Ultrashort Bonds. As well as selling out from Real Estate, Infrastructure and Private Equity in favour of USD Ultrashort Bonds, broad commodities basket and Natural Gas exposures. ​

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