Volta Finance
Limited (VTA) - May 2017 monthly report
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES
*****
Guernsey, 16 June 2017
AXA IM has published the Volta
Finance Limited (the "Company" or "Volta Finance" or "Volta")
monthly report for May. 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 May, Volta's Estimated NAV*
performance was +0.6%. This positive performance is mostly due to
the good performance of the CLO Equity bucket and is in line with
the modest but positive performance of credit markets in May.
The depreciation of the dollar
against Euro contributed to -0.7%. The negative contribution this
month needs to be put in perspective with the positive contribution
(circa +2.1%) for the period from March 2016 to March 2017. Volta
currency exposures are limited and through time are not expected to
be a significant driver of performance.
During the month, Volta did not
purchase nor sell any assets.
At the end of May 2017, Volta's
Estimated NAV* was €311.3m or €8.52 per share. The GAV stood at
€354.6m. A 16 cents per share quarterly dividend payment is
scheduled to be paid on the 29th of June
(ex-dividend date was June 8th).
In May, mark-to-market
variations** of Volta's asset classes were: +0.9% for Synthetic
Corporate Credit deals; +2.6% for CLO Equity tranches; 0.8% for CLO
Debt tranches, 0.0% for Cash Corporate Credit deals; and -0.2% for
ABS.
In May, Volta generated the
equivalent of €1.1m 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 May totaled €40.2m. €5.8m will be used to
pay for the end of June dividend.
The current level of cash is
higher than usual and mainly reflects the strong prepayments that
occurred recently. 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 is
relatively unchanged since the end of April. The exposure to the US
Dollar at the end of May was still circa 24% against circa 33% one
year ago.
In May we closed the modest and
positive duration position that was added to the portfolio in Q4
2015. It modestly contributed to +0.2% to Volta performance during
the period. This kind of hedge is 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 volatility profile.
* It should be
noted that approximately 10.2% 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 1.0% of Volta's GAV and at 28 April for 9.2% 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.
*****
Monthly Report May 2017
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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