Volta Finance Ld Volta Finance Limited : Net Asset Value(s)
December 22 2016 - 2:00AM
UK Regulatory
TIDMVTA
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 EUR0.16 (16 cents) per share will be paid the
22(nd) 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 EUR2.3m and sold three positions (two CLO BB tranches and one
CLO Equity tranche) for a total of the equivalent of EUR10.3m. 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 EUR308.2m or
EUR8.43 per share. The GAV stood at EUR352.2m.
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 EUR0.9m 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
EUR15.0m.
Cash holdings or cash equivalent instruments at the end of November
totaled EUR17.7m 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.
DIVID CURRENCY ELECTION - CURRENCY CONVERSION RATE
Regarding the dividend of EUR0.16 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 GBP0.13528 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 EUR679 billion in assets under management as of the end of
June 2016. AXA IM employs approximately 2,399 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.
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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.
*****
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:
http://hugin.info/137695/R/2067191/776196.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
(END) Dow Jones Newswires
December 22, 2016 02:00 ET (07:00 GMT)
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