Volta Finance Limited: Estimated Net Asset Value as at 31 October
2018
Volta Finance Limited (VTA / VTAS) –
October 2018 monthly report
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE
OR IN PART, IN OR INTO THE UNITED STATES
***** Guernsey, 20 November 2018
AXA IM has published the Volta Finance Limited
(the “Company” or “Volta Finance” or “Volta”) monthly report for
October. 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 October, Volta’s Estimated NAV* total return
performance was +1.3%, a strongly positive performance in a context
of volatile credit and equity markets. A significant portion of
this positive monthly performance (0.8%) was due to USD
appreciation in October.
In October, almost all buckets contributed to
performance as shown by the mark-to-market performances of Volta’s
asset classes. In local currencies: +1.3% for Bank Balance Sheet
Transactions; +1.0% for CLO Equity tranches; +0.6% for CLO Debt
tranches; -2.7% for Cash Corporate Credit deals; and +1.1% for
ABS.
In September, Volta converted a USD CLO
warehouse facility into a CLO Equity position (USD13m was
purchased) which settled in October. The holding period performance
realised on this warehouse was 26.6%.
In October, another warehouse was converted into
a CLO Equity position (€6.4m was purchased). It is too early to
finalise the performance of this warehouse but it is expected to be
in the 20% area again.
A new USD CLO warehouse was opened in October
with an initial contribution of USD4m.
Overall, during the month the equivalent of
€24.0m was amortized or reimbursed from previous deals and the
equivalent of €17.3m was invested (representing various
contributions to the existing warehouses and the purchase in the
primary market of a USD5m position on a USD Middle Market CLO
Equity position). On average and under market standard assumptions,
the projected average IRR of all purchases was in the area of
14.5%.
We continue to pursue our investment strategy
that consists in increasing the allocation to CLO Equity tranches
in order to benefit from the structural optionality embedded with
such positions (contrary to CLO debt positions). At the end of
October, Volta’s CLO Equities represented 32.5% of GAV with a
further 2.3% invested in CLO warehouses that will be converted into
CLO Equity positions. Depending on the market situation, a target
allocation in the area of 40% into CLO Equity positions seems
reasonable for Volta.
In October, Volta generated the equivalent of
€7.1m 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 interests and coupons to €19.3m.
As at the end of October 2018, Volta’s Estimated
NAV was €306.7m or €8.39 per share. The GAV stood at €354.5m.
*It should be noted that approximately 9.2% 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. The most recently available fund NAV
was for 5.6% as at 30 September 2018 and for 3.6% as at 30 June
2018. ** “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 ManagerAXA
Investment Managers ParisSerge Demayserge.demay@axa-im.com+33 (0) 1
44 45 84 47
Company Secretary and
AdministratorBNP Paribas Securities Services S.C.A,
Guernsey Branch guernsey.bp2s.volta.cosec@bnpparibas.com +44
(0) 1481 750 853
Corporate Broker Cenkos Securities plc Andrew
WorneOliver PackardSapna Shah+44 (0) 20 7397 8900
***** 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
MANAGERSAXA 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 766 investment
professionals and €759 billion in assets under management as of the
end of June 2018.
*****
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.
*****
- Volta - Monthly Report - October 2018
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