Volta Finance Ld Volta Finance Limited : Estimated Net Asset Value As At 31 December 2017
January 22 2018 - 2:00AM
UK Regulatory
TIDMVTA
Volta Finance Limited (VTA) - December 2017 monthly report
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES
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Guernsey, 19 January 2018
AXA IM has published the Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") monthly report for December. 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 December, Volta's Estimated NAV* performance was +0.6% (taking into
account the December dividend payment), bringing the performance for the
year to date to 6.6% (dividends reinvested at NAV).
On 21 December, Volta paid a quarterly dividend of 0.16 euro per share
(with an ex-dividend date of 30 November) representing an annualised
yield of 9% based on the end of November share price.
The annual performance is somewhat below that recorded in the last few
calendar years, primarily on account of the negative performance drag
caused by currency exposure to the US Dollar (nearly 30% of the NAV on
average through 2017). The overall estimated impact of currency
exposures for 2017 is -3.6%, meaning that the performance of Volta,
prior to the currency impact is above 10% (net of fees) for 2017. As we
have noted previously, foreign currency exposure is not fully hedged
back to Euro to avoid excessive liquidity demands if hedges were to move
adversely and also to limit the cash drag that arises from the need to
maintain margin against open hedges. This strategy has been in place for
many years and historically has not had any material impact on the mid
to long-term performance of Volta as the Euro/dollar cross rate has been
relatively stable for many years.
Late in December, Volta received the equivalent of EUR24.2m of
prepayments from two positions. These repayments account for the rather
significant amount of cash held at the end of December. Prepayment
levels were very high in 2017 and this, in large part, accounted for
periodically higher levels of cash in the Company than would be usual.
However, it is encouraging that, throughout the year, we have continued
to be able to source and reinvest in new opportunities at attractive
IRRs, which bodes well for future returns. Volta was drawn on one asset
(the lease transaction that was sourced in 2016) for the equivalent of
EUR1.4m during December.
In 2018 we anticipate continuing to increase exposure to the CLO Equity
bucket as well as the Bank Balance sheet bucket. It is expected that we
will continue to do so at the expense of CLO Debt positions given the
significant tightening of CLO debt tranches. This tandem increase to CLO
Equity and Bank Balance sheets from CLO Debt means that aggregate risk
levels should not increase meaningfully.
At the end of December 2017, Volta's Estimated NAV was EUR304.0m or
EUR8.32 per share. The GAV stood at EUR347.4m.
In December, mark-to-market variations of Volta's asset classes were:
+0.5% for Bank Balance Sheet Transactions; +1.0% for CLO Equity
tranches; +2.1% for CLO Debt tranches, 0.0% for Cash Corporate Credit
deals as well as for ABS.
In December, Volta generated the equivalent of EUR1.9m 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
EUR17.4m.
*It should be noted that approximately 11.5% 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 for 8.9% as at 30 November 2017 and for
2.6% as at 29 September 2017.
** "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 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
Oliver Packard
Andrew Worne
Sapna Shah
+44 (0) 20 7397 1916
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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.
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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 EUR717 billion in assets under management as of the end of
December 2016. AXA IM employs approximately 2,420 people around the
world.
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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.
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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.
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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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Volta Finance Limited - December 2017 monthly report:
http://hugin.info/137695/R/2162655/831897.pdf
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
http://www.voltafinance.com
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January 22, 2018 02:00 ET (07:00 GMT)
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