Estimated Net Asset Value as at 31 August 2018
Volta Finance Limited (VTA / VTAS) –
August 2018 monthly report
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE
OR IN PART, IN OR INTO THE UNITED STATES
***** Guernsey, 20 September 2018
AXA IM has published the Volta Finance Limited
(the “Company” or “Volta Finance” or “Volta”) monthly report for
August. The full report is attached to this release and will be
available on Volta’s website shortly (www.voltafinance.com).
PERFORMANCE and PORTFOLIO
ACTIVITY
In August, Volta’s Estimated NAV* performance
was +1.2%, a positive performance in a context of modestly
constructive credit markets in general. Volta will pay a dividend
of 0.15 euro per share on 27 September 2018 (Ex-dividend date was 6
September 2018).
In August, mark-to-market performances of
Volta’s asset classes, in local currencies, were: +1.4% for Bank
Balance Sheet Transactions; +0.9% for CLO Equity tranches; +1.1%
for CLO Debt tranches, +0.2% for Cash Corporate Credit deals and
+0.4% for ABS.
Despite the oversupply situation in the CLO
space (mostly affecting the spread at which AAA/AA and A rated
tranches are issued), the mezzanine tranches of CLO owned by Volta
(mostly BB rated tranches) performed positively this month
reflecting the fact that on a fundamental basis these assets
continue to perform well.
During the month Volta did not make any new
investments but the equivalent of €5.3m was drawn from existing
positions (various contributions to the 3 CLO warehouses that have
been opened previously and contributions to the existing CMV and
Crescent). On average and under market standard assumptions, the
projected IRR of such instruments is in the area of 16%. It is
worth mentioning that a previous warehouse closed in August,
delivering through its four and one half months of existence an IRR
slightly below 20%.
In August, Volta generated the equivalent of
€1.0m in interest and coupons net of repo costs (non-euro amounts
translated into euro using end-of-month cross currency rates). This
brings the total cash amount generated during the last six months
in terms of interest and coupons to €19.6m, a level unseen for
several years.
This time, the increasing amount of interest and
coupons generated by Volta’s assets on a six-month basis was mostly
due to the closing of one warehouse (with the payment, at this
point in time of the cumulative interest collected through its four
and one half month duration).
As planned, we continue to allocate capital to
CLO warehousing facilities in order to source new CLO equity
positions with attractive economic terms. It is anticipated that
two warehouses to which Volta contributed this month should lead to
a CLO pricing during Q3 2018. Expected returns on such CLO equity
positions are in the area of 13% to 15%.
As of the end of August 2018, Volta’s Estimated
NAV was €309.6m or €8.46 per share. The GAV stood at €355.3m.
*It should be noted that approximately 10.9% of
Volta’s GAV comprises investments for which the relevant NAVs as at
the month-end date are normally available only after Volta’s NAV
has already been published and an investment in one subordinated
note security for which a fully up-to-date price might be
unavailable. Volta’s policy is to publish its own NAV on as timely
a basis as possible in order to provide shareholders with Volta’s
appropriately up-to-date NAV information. Consequently, such
investments are valued using the most recently available NAV for
each fund or quoted price for such subordinated note. The most
recently available fund NAV or quoted price was for 7.5% as at 31
July 2018, for 1.3% as at 30 June 2018 and for 2.1% as at 31 March
2018.
** “Mark-to-market variation” is calculated as
the Dietz-performance of the assets in each bucket, taking into
account the Mark-to-Market of the assets at month-end, payments
received from the assets over the period, and ignoring changes in
cross currency rates. Nevertheless, some residual currency effects
could impact the aggregate value of the portfolio when aggregating
each bucket.
This announcement contains information
that is inside information for the purposes of the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement via Regulatory Information Service this inside
information is now considered to be in the public
domain.
CONTACTS
For the Investment ManagerAXA
Investment Managers ParisSerge Demayserge.demay@axa-im.com+33 (0) 1
44 45 84 47
Company Secretary and Portfolio
AdministratorSanne Group (Guernsey)
Limitedvoltafinance@sannegroup.com +44 (0) 1481 739810
Corporate Broker Cenkos Securities plc Andrew
WorneOliver PackardSapna Shah+44 (0) 20 7397 8900
***** ABOUT VOLTA FINANCE
LIMITED
Volta Finance Limited is incorporated in
Guernsey under The Companies (Guernsey) Law, 2008 (as amended) and
listed on Euronext Amsterdam and the London Stock Exchange's Main
Market for listed securities. Volta’s home member state for the
purposes of the EU Transparency Directive is the Netherlands. As
such, Volta is subject to regulation and supervision by the AFM,
being the regulator for financial markets in the Netherlands.
Volta’s investment objectives are to preserve
capital across the credit cycle and to provide a stable stream of
income to its shareholders through dividends. Volta seeks to attain
its investment objectives predominantly through diversified
investments in structured finance assets. The assets that the
Company may invest in either directly or indirectly include, but
are not limited to: corporate credits; sovereign and
quasi-sovereign debt; residential mortgage loans; and, automobile
loans. The Company’s approach to investment is through vehicles and
arrangements that essentially provide leveraged exposure to
portfolios of such underlying assets. The Company has appointed AXA
Investment Managers Paris an investment management company with a
division specialised in structured credit, for the investment
management of all its assets.
*****
ABOUT AXA INVESTMENT
MANAGERSAXA Investment Managers (AXA IM) is a multi-expert
asset management company within the AXA Group, a global leader in
financial protection and wealth management. AXA IM is one of the
largest European-based asset managers with €717 billion in assets
under management as of the end of December 2016. AXA IM employs
approximately 2,420 people around the world.
*****
This press release is distributed and
published by AXA Investment Managers Paris (“AXA IM”), in its
capacity as alternative investment fund manager (within the meaning
of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance
Limited (the "Volta Finance") whose portfolio is managed by AXA
IM.
This press release is for information
only and does not constitute an invitation or inducement to acquire
shares in Volta Finance. Its circulation may be prohibited in
certain jurisdictions and no recipient may circulate copies of this
document in breach of such limitations or restrictions. This
document is not an offer for sale of the securities referred to
herein in the United States or to persons who are “U.S. persons”
for purposes of Regulation S under the U.S. Securities Act of 1933,
as amended (the “Securities Act”), or otherwise in circumstances
where such offer would be restricted by applicable law. Such
securities may not be sold in the United States absent registration
or an exemption from registration from the Securities Act. Volta
Finance does not intend to register any portion of the offer of
such securities in the United States or to conduct a public
offering of such securities in the United States.
*****
This communication is only being
distributed to and is only directed at (i) persons who are outside
the United Kingdom or (ii) investment professionals falling within
Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the “Order”) or (iii) high net
worth companies, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order
(all such persons together being referred to as “relevant
persons”). The securities referred to herein are only available to,
and any invitation, offer or agreement to subscribe, purchase or
otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should
not act or rely on this document or any of its contents. Past
performance cannot be relied on as a guide to future
performance.
*****This press release
contains statements that are, or may deemed to be, "forward-looking
statements". These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms
"believes", "anticipated", "expects", "intends", "is/are expected",
"may", "will" or "should". They include the statements regarding
the level of the dividend, the current market context and its
impact on the long-term return of Volta Finance's investments. By
their nature, forward-looking statements involve risks and
uncertainties and readers are cautioned that any such
forward-looking statements are not guarantees of future
performance. Volta Finance's actual results, portfolio composition
and performance may differ materially from the impression created
by the forward-looking statements. AXA IM does not undertake any
obligation to publicly update or revise forward-looking
statements.
Any target information is based on
certain assumptions as to future events which may not prove to be
realised. Due to the uncertainty surrounding these future events,
the targets are not intended to be and should not be regarded as
profits or earnings or any other type of forecasts. There can be no
assurance that any of these targets will be achieved. In addition,
no assurance can be given that the investment objective will be
achieved.
The figures provided that relate to past
months or years and past performance cannot be relied on as a guide
to future performance or construed as a reliable indicator as to
future performance. Throughout this review, the citation of
specific trades or strategies is intended to illustrate some of the
investment methodologies and philosophies of Volta Finance, as
implemented by AXA IM. The historical success or AXA IM’s belief in
the future success, of any of these trades or strategies is not
indicative of, and has no bearing on, future results.
The valuation of financial assets can
vary significantly from the prices that the AXA IM could obtain if
it sought to liquidate the positions on behalf of the Volta Finance
due to market conditions and general economic environment. Such
valuations do not constitute a fairness or similar opinion and
should not be regarded as such.
Editor: AXA INVESTMENT MANAGERS
PARIS, a company incorporated under the laws of France, having its
registered office located at Tour Majunga, 6, Place de la Pyramide
- 92800 Puteaux. AXA IMP is authorized by the Autorité des Marchés
Financiers under registration number GP92008 as an alternative
investment fund manager within the meaning of the AIFM
Directive.
*****
- Volta - Monthly Report - August 2018
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