Volta Finance
Limited (VTA) - November 2016 monthly report
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES
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Guernsey, 22 December 2016
AXA IM has published the Volta
Finance Limited (the "Company" or "Volta Finance" or "Volta")
monthly report for November. The full report is attached to this
release and is available on Volta's website
(www.voltafinance.com).
PERFORMANCE and
PORTFOLIO ACTIVITY
In November, Volta's Estimated
NAV* performance was 2.7%, in line with a positive performance in
most credit and equity markets.
As at the end of November, the YTD
NAV performance is 13.8%, adjusting for the April and September
dividend payments. After 12.4% in 2014 and 10.0% in 2015, 2016 is
so far another good year for Volta and its shareholders.
A dividend payment of €0.16 (16
cents) per share will be paid the 22nd of December
and at the time of publishing this report we have passed the
Ex-Dividend date.
In November, Volta purchased two
positions (one BB and one Equity tranche of two different USD
CLOs), both in the secondary market and for a total of €2.3m and
sold three positions (two CLO BB tranches and one CLO Equity
tranche) for a total of the equivalent of €10.3m. On average and
based on standard market assumptions, the purchases were executed
with an average expected yield close to 11% and the sales were
traded with an average expected yield of close to 6%.
At the end of November 2016,
Volta's Estimated NAV* was €308.2m or €8.43 per share. The GAV
stood at €352.2m.
In November, mark-to-market
variations** of Volta's asset classes were: +0.9% for Synthetic
Corporate Credit deals; +2.2% for CLO Equity tranches; +1.0% for
CLO Debt tranches, +0.8% for Cash Corporate Credit deals and 0.0%
for ABS.
In November, Volta generated the
equivalent of €0.9m in interest and coupons net of repo costs
(non-euro amounts translated into euro using end-of-month cross
currency rates), bringing the total cash amount generated during
the last six months in terms of interest and coupons to €15.0m.
Cash holdings or cash equivalent
instruments at the end of November totaled €17.7m and we expect to
invest in some recent transactions, including some Bank Balance
Sheet transactions, by the end of December 2016. On top of that,
considering the significant rally that occurred on CLO debt
tranches since the summer, we expect to continue selling some of
Volta's older positions and buying more recently issued deals in
order to increase the projected yield of the portfolio.
Since the end of October, the US
Dollar appreciated somewhat against the Euro which is beneficial to
Volta as the US Dollar exposure is in the area of 27%. US mid and
long term rates have increased toward levels unseen for some time
and Volta added some duration in mid-November and then in
mid-December through the US 5YR Note Future. At the time of writing
this report the position represents circa 1.5 year of duration. AXA
IM believe that fixed rate exposure (at a reasonable interest rate
level) can provide a good hedge against further potential economic
disappointments.
We continue to see opportunities
in several structured credit sectors including mezzanine and equity
tranches of CLOs, RMBS tranches and tranches of Cash Corporate
Credit and Synthetic Corporate Credit portfolios.
DIVIDEND CURRENCY ELECTION -
CURRENCY CONVERSION RATE
Regarding the dividend of €0.16 per share payable on 22 December
2016, the currency conversion rate for those Shareholders who
elected to receive pounds sterling will be 0.84550 pounds sterling
per euro, based on the foreign currency exchange rate as at 18:00
(UK time) on 6 December 2016. Consequently, the applicable pounds
sterling dividend rate is £0.13528 per share.
* It should be
noted that approximately 10.7% 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:
30 September 2016 for 2.6% of Volta's GAV and as at 31 October 2016
for 8.1% 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
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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 €679 billion in assets under
management as of the end of June 2016. AXA IM employs
approximately 2,399 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 - 92908 Paris La Défense cedex, a company
incorporated under the laws of France, having its register
Management Company, holder of AMF Approval no. GP 92-08, issued on
7 April 1992.
*****
November 2016 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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