Oct-24: Insights

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

October 2024 Update

​​For UK professional investors only 

MARKETS

​Equity markets have been jittery pending the US Elections on 5 November.

Sterling’s weakness against the Dollar this month made US and Global Equity performance look better.

Geopolitical tensions - in the Middle East and in Ukraine - remain acute, creating a higher risk to inflation than to economic growth.

EQUITIES

​The VT Avastra Global Equity Fund returned +1.48% for the month and is +10.70% YTD. During the month we made the following adjustments to the fund:

• Realigning overall fund allocations to MSCI World ACWI, including Overweight tilts to EM, Asia Pacific and Japan whilst being underweight UK.
  
• Further increased allocations to US S/Mid cap strategy. 

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 -0.95% for the month and is +0.77% YTD. During the month we made the following adjustments to the fund:

• Introduced AT1 Coco Bonds which offer higher yield but are still made up of high-quality underlying bonds.
  
• Re-introduced tilts back to Emerging Market USD Debt as yields are once again attractive. 

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 +1.44% for the month and is +8.80% YTD. During the month we made the following adjustments to the fund:

• Increased allocations to Silver as demand out paces supply.
  
• Introductions of RIT Capita Partners and Berkshire Hathaway as both offer differentiated approaches funded from reductions in Money Market Instruments. 

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