Net Asset Value as at 31 March 2023

Volta Finance Limited (VTA / VTAS) March 2023 monthly report


***** Guernsey, 14 April 2023

AXA IM has published the Volta Finance Limited (the “Company” or “Volta Finance” or “Volta”) monthly report for March 2023. The full report is attached to this release and will be available on Volta’s website shortly (


Including the dividend to be paid in April (but had record date in March) Volta Finance performance in March is -1.5% which is a relatively good performance in such context. For the first quarter of the year the performance stands at +5.8%, a very good start for 2023.

Volta’s underlying sub asset classes monthly performances** were as follows: +0.8% for Bank Balance Sheet transactions, -2.8% for CLO Equity tranches, -3.4% for CLO Debt tranches; and +2.9% for Cash Corporate Credit and ABS (which represent circa 2.2% of the fund’s NAV).

We highlighted in previous monthly reports that we have been building (and trading) a long duration overlay for several months. As explained, we are convinced that rates are globally back to levels from which one could anticipate interest rates cuts in reaction to potential economic shocks. This is exactly what happened in March with the Credit Suisse story and the bail-out of some US Regional banks: government bonds recorded solid performances on both sides of the Atlantic. As of the start of March, Volta overlay duration was in the area of 3 years (long US five-notes contracts and fixed receiver on European swaps) and it contributed to circa 2% of the March’s performance. As a result, we took some significant profits on this duration overlay, taking the overlay in the area of 1 year of duration at the end of March.

Our view regarding the March events is as follow – while the CS situation was very specific and should not spread to the wider European banking system, we believe that what happened with the US Regional banks is much more concerning. It is clear to us that there is a need for higher regulation there while the competition between US banks deposits and US monetary funds is much more acute than in Europe. Consequently, we may see some US regional banks pushed to reduce some of the support they used to provide to specific businesses in the quarters/years to come. The areas under most scrutiny seem to be the CREs one as well as local/small businesses, and it is reasonable to expect that a reduction in their financial support will have economic impacts. Access to credit may reduce while the cost of credit for a substantial chunk of the US economy will most likely be higher, although we expect this to be partially offset by lower-than-expected interest rates.

We see no direct impact of these banking issues for CLOs. Underlying loan portfolios are located in SPVs (Special Purpose Vehicle) that sit outside banks’ balance sheets. CS was a modest player in Loan origination and the US regional banks are not involved in US Loan origination either. CLOs holdings in US regional banks are also very modest (below 1.5% of the CLO market according to the research we read). The only area that may be under some pressure is the Middle Market CLO one. Indeed, companies that finance themselves through Middle Market loans are usually local and relatively small, hence most likely customers of regional banks (in the form of deposit, paycheck, revolver facilities, …). There has been no particular market reaction and MML CLOs did not underperform their BSL cousins for now. Note that Volta do not own MML CLO debts and our exposure to MML CLO equity is 1.1% of NAV.

March is a structurally weak month in terms of interest and cash flows collected from Volta’s assets: Volta received the equivalent of €0.6m of interests and coupons. However, over the usual rolling 6-month time frame, Volta received €22.1m of interests and coupons, ie. a 19.2% annualized cash flow to NAV.

No significant purchases were made in March. We think that some pricing weakness on Loans will show in the coming months. Volta accumulated a bit of cash over the last 3 months, and we hope this will allow us to make some good investments, at a discount, in the coming weeks/months.

As at the end of March 2023, Volta’s NAV was €221.0m or €6.04 per share.

*It should be noted that approximately 6.99% 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. Volta’s policy is to publish its NAV on as timely a basis as possible 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 notes. The most recently available fund NAV or quoted price was 5.86% as at 28 February 2023, 0.57% as at 31 January 2023, 0.56% as at 30 September 2022.

** “performances” of asset classes are calculated as the Dietz-performance of the assets in each bucket, taking into account the Mark-to-Market of the assets at period ends, 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.


For the Investment ManagerAXA Investment Managers ParisSerge (0) 1 44 45 84 47

Company Secretary and AdministratorBNP Paribas S.A, Guernsey +44 (0) 1481 750 853

Corporate BrokerCenkos Securities plcAndrew WorneDaniel Balabanoff+44 (0) 20 7397 8900


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 its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. The Company currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. 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 2,623 professionals and €817 billion in assets under management as of the end of September 2022.  


This press release is 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.


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