Volta Finance
Limited (VTA) - April 2017 monthly report
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES
*****
Guernsey, 19 May 2017
AXA IM has published the Volta
Finance Limited (the "Company" or "Volta Finance" or "Volta")
monthly report for April. 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 April, Volta's Estimated NAV*
performance was -0.5%. This slightly negative performance is mostly
due to the depreciation of the dollar against Euro, contributing
-0.5%. Underlying performance excluding the impact of currency was
modestly positive in line with very quiet credit markets in
April.
During the month, Volta purchased
two assets (one Euro CLO debt position and one new USD CLO equity
position), entered into a European CLO warehouse and, in addition,
the "CMV" announced in the January monthly report was partly drawn
down for an aggregate equivalent of €19.2m. On average, and based
on standard market assumptions, the purchases and the CMV drawdown
have an expected yield close to 13%. In April, four CLO debt
positions were sold or called for an aggregate equivalent of
€21.2m. On average, and based on standard market assumptions, the
expected yield of these four assets was close to 5.8%.
At the end of April 2017, Volta's
Estimated NAV* was €309.7m or €8.47 per share. The GAV stood at
€355.8m. The variation relative to the Early Estimated NAV
reflects lower prices received for CLO equity positions.
In April, mark-to-market
variations** of Volta's asset classes were: 0.0% for Synthetic
Corporate Credit deals; +0.1% for CLO Equity tranches; 0.0% for CLO
Debt tranches, +6.1% for Cash Corporate Credit deals; and +0.6% for
ABS.
During April, Volta generated the
equivalent of €5.4m 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 €15.7m.
Cash holdings or cash equivalent
instruments at the end of April totaled €36.6m.
The current level of cash is
higher than usual and mainly reflects the strong prepayments that
occurred in April. Our view is still that credit markets are now
quite fully valued and this amount will be deployed in due course
when better opportunities arise. Typically we expect to be able to
deploy more capital in CLO Equity tranches and in Bank Balance
Sheet transactions. We expect to utilize CLO warehouse exposure as
a way to access CLO equity positions with better economics.
Volta's currency exposure was
relatively stable during April and the exposure to the US Dollar at
month end was circa 24% against circa 33% one year ago. The
negative contribution this month needs to be put in perspective
with the positive contribution for the previous 12 month period
(circa +2.1% from March 2016 to March 2017). Volta currency
exposures are modest and through time are not expected to be a
significant driver of performance.
A small exposure continues to be
maintained to duration, which was accretive to returns during
April. The modest short position that was taken on the S&P500
was closed with a very minor loss (less than 0.1%).These hedges are
aimed at dampening downside volatility arising from shorter-term
mark to market developments that may arise. Ultimately, the returns
of Volta continue to be predominantly driven by the performance and
the strong cash flows from the structured finance assets held but
we believe that these hedges will contribute to a better short-term
volatility profile.
* It should be
noted that approximately 8.8% of Volta's GAV comprises investments
in funds 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 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 in funds are valued using the most recently available
NAV for each fund. The most recently available fund NAV was as at:
31 March 2017 for 8.8% of Volta's GAV.
**
"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.
CONTACTS
For the
Investment Manager
AXA Investment Managers Paris
Serge Demay
Serge.demay@axa-im.com
+33 (0) 1 44 45 84 47
Company Secretary
and Portfolio Administrator
Sanne Group (Guernsey) Limited
voltafinance@sannegroup.com
+44 (0) 1481 739810
Corporate Broker
Cenkos Securities plc
Alan Ray
Oliver Packard
Sapna Shah
+44 (0) 20 7397 1916
*****
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 MANAGERS
AXA 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 Finance Limited - April 2017
monthly report
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Volta Finance Limited via Globenewswire
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