Volta Finance Limited Net Asset Value as at 30 September 2019
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 €16 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 €21.9m, 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
€3.9m in a Euro CLO Equity position and sold 2 debt positions for
the equivalent of €5m. 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
€281.4m or €7.69 per share. The GAV stood at €321.2m.
*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
+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 +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 €750 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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- September 2019 Monthly Press Release - Final - PDF
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