May-26: Insights

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

MAY 2026 UPDATE

MARKETS

Global equities rose for a ninth consecutive week in May, with Asia and Tech leading the way, as 
markets focused on the AI revolution & strong corporate earnings rather than the ongoing Strait of 
Hormuz closure.

UK 30-year gilt yields hit their highest since 1998 after Reform’s local election gains raised fears of a 
Labour leadership change and looser fiscal policy, before recovering sharply as Andy Burnham 
committed to the fiscal rules and oil prices fell.
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A tentative 60-day ceasefire extension was agreed on the final Friday of the month, but Iran said it 
would charge fees for Strait navigation, stopping well short of full reopening, and infrastructure 
damage is expected to weigh on energy supply well into 2027.

EQUITIES

The VT Avastra Global Equity Fund returned +5.01% for the month and +7.50% for the year.

• Regional switches include selling out from World Equities in favour of Asia Pacific equities
• Manager changes include selling out from global active strategies in favour of Semiconductor 

and Lithium Production thematics.
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 +0.75% for the month and -0.43% for the year.

• No changes were made 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 +2.32% for the month and +6.06% for the year.

• Changes include selling out from Mortgage-Backed Securities, Ultrashort Bonds and Brent 

Crude, in favour of Physical precious metals allocations.
The fund provides both asset-based and risk-based diversification, as an alternative to equities and 
bonds