Volta Finance Ld Volta Finance Limited Net Asset Value As At 30 September 2019
October 10 2019 - 12:00PM
UK Regulatory
TIDMVTA
Volta Finance Limited (VTA / VTAS) -- September 2019 monthly report
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES
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Guernsey, 10 October 2019
AXA IM has published the Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") monthly report for September. 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 September, Volta's NAV* total return performance was +0.4%
(considering the EUR16 cents per share dividend payment late in
September), bringing the YTD performance to 5.7%.
The monthly performances ** of the sub-asset classes were the following,
in local currency: +0.8% for Bank Balance Sheet transactions, +0.5% for
CLO Equity tranches; +0.2% for CLO Debt; +2.4% for Cash Corporate Credit
deals; and +0.4% for ABS.
Despite a mix performance for US loans (the average loan price of the
S&PLSTA index was unchanged in September) our CLO buckets performed
positively reflecting the high projected yield at which these assets are
valued. For example, our bucket of CLO equity position (24.5% of our
assets) is valued at a projected yield near 16% currently, using market
standard assumptions.
One direct consequence of larger discount yields is that we can acquire
more assets and generate larger cashflows from these assets. As at the
end of September, the amount of interest and coupons we received for the
last 6 months was at the equivalent of EUR21.9m, an annual yield at
15.6% of the current Net Asset Value. The last time ongoing cashflows
over NAV reached these figures was in December 2012. At the time our
assets were still recouping from the Global Financial Crisis and were
still priced at significant discounts. Our view is not that we can
expect a similar performance over the next couple of years as the one we
had in 2013 and 2014 (25.3% and 12.4% respectively) but to make it clear
that our assets are now priced at a significant discount relative to
what has been observed for the last 6 years.
In September, we invested the equivalent of EUR3.9m in a Euro CLO Equity
position and sold 2 debt positions for the equivalent of EUR5m. With
standard assumptions, the projected IRR of the Euro CLO Equity position
was close to 11%.
As at the end of September 2019, Volta's NAV was EUR281.4m or EUR7.69
per share. The GAV stood at EUR321.2m.
*It should be noted that approximately 10.7% 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 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 6.2% as at 30 August 2019 and for 4.5% as at 28 June 2019.
** "monthly performances" are 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
srge.demay@axa-im.com
https://www.globenewswire.com/Tracker?data=FU4fIqtiIM4dhSRZW8Kbnr4B-7FjWXJd7CxmKu6HgQjlR5h8Q0zYuq0ZqarAJFsIzbxd2BiYQ3RtfIf9IzfaB6Z6GxnV884xgIxin_b2ADs=
+33 (0) 1 44 45 84 47
Company Secretary and Administrator
BNP Paribas Securities Services S.C.A, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com
https://www.globenewswire.com/Tracker?data=nSRKcRvzmYqk_An_-Yi6gNJQSEOc-ZVfjBvGFA84_2UiP-o5m53ljhrsAhEN23TW_fe2npQLDEzb_4mTjJBhkGBPanJ5xeRoHj6KgvbzVQ3qcCYvm5JcxbTqFHpc4AOkOmPH5gCMnHMlLcazi6JfBn7-Zdh-u_eCaolLp2TtiwQmNFxhdmrGPQ8c0ohHzruArBPFEJnZQouD6i3bQswSgkJMVAGeTP2CUCsEAGG7iD0i-F25Zhn2zYx--w0HLhQsAmp1LTpv2kwLHsEvp1Gl7rLtaTdsEb1tSzZi7Z5Vdi1ZL7abQGx6_Gpjqv5Ecs1qOBqxSyScxKjn8hJfBoUPcflhBvzmkvimW_r3v_MkzjuaQD0Eh_YOBMqR6KCLqLyo
+44 (0) 1481 750 853
Corporate Broker
Cenkos Securities plc
Andrew Worne
Oliver Packard
Sapna Shah
+44 (0) 20 7397 8900
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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 739 investment professionals and EUR750 billion in assets
under management as of the end of March 2019.
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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.
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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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Attachment
-- September 2019 Monthly Press Release - Final - PDF
https://ml-eu.globenewswire.com/Resource/Download/0dad1585-357f-4105-9e79-50286d49da50
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October 10, 2019 12:00 ET (16:00 GMT)
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