Nov-24: Insights

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

November 2024 Update

​​For UK professional investors only 

MARKETS

​Equity markets have rallied strongly following the US election result, with a positive outlook for US corporate earnings.

Rate cuts in the US and UK of 25bp (to 4.75%) were in line with expectations. But economic growth outlook is better for the US than UK.

Geopolitical risk was reduced in the US with a clear, uncontested win, but has escalated in both Ukraine and the Middle East.

EQUITIES

​The VT Avastra Global Equity Fund returned +4.77% for the month and is +15.97% YTD. During the month we made the following adjustments to the fund:

• Reduced equity allocations from Europe in favour of US on bleak outlook.
  
• Introduced Brunner Investment Trust as an “all weather strategy” focused on Quality stocks.
  
• Sector switches included Materials and Industrials in favour of Energy and Communication Services. 

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 +0.40% for the month and is +1.17% YTD. During the month we made the following adjustments to the fund:

• Introduced US corporate bonds funded by a reduction in UK Gilts to increase USD exposure.
• Larger fiscal spends in the UK are likely to keep longer term yields higher. 

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 +1.16% for the month and is +10.06% YTD. During the month we made the following adjustments to the fund:

• Switched out from UK REITs as the higher for longer environment is not favourable. 
  
• Increased allocations Listed Private Equity and Infrastructure as valuations are attractive and further AI investments could boost the sector.

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