Volta Finance
Limited (VTA) - August 2016 monthly report
NOT FOR RELEASE, DISTRIBUTION OR
PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES
*****
Guernsey, 22 September 2016
Volta Finance Limited (the
"Company" or "Volta Finance" or "Volta") has published its monthly
report. The full report is attached to this release and is
available on Volta's website (www.voltafinance.com).
PERFORMANCE and
PORTFOLIO ACTIVITY
In August, Volta's Estimated NAV
gained 2.8% in line with the modest positive performance in most
credit and equity markets.
As at the end of August, the YTD
NAV performance is 7.4%, including the April dividend payment.
Volta expects to produce a performance in the area of 10% for this
year, after 10.0% in 2015 and 12.4% in 2014.
In August, Volta purchased one USD
CLO Equity in the secondary market and signed for a new European
CLO warehouse. A total of the equivalent of €5.2m was invested in
these two positions (only one third of the total commitment for the
warehouse was drawn). On average and based on standard market
assumptions, these purchases have an expected yield of close to
11.5%. During the month no position was sold or amortised.
At the end of August 2016, Volta's
Estimated NAV* was €295.6m or €8.09 per share. The GAV stood at
€338.4m.
In August, mark-to-market
variations** of Volta's asset classes were: +1.6% for Synthetic
Corporate Credit deals; +2.4% for CLO Equity tranches; +3.1% for
CLO Debt tranches, +4.4% for Cash Corporate Credit deals; and,
+3.3% for ABS.
In August, Volta generated the
equivalent of €1.4m in interest and coupons (non-euro amounts
translated into euro using end-of-month cross currency rates),
bringing the total cash amount generated in terms of interest and
coupons during the last six months to €17.3m.
Cash holdings or cash equivalent
instruments at the end of August totaled €3.4m (after reductions
for some trades unsettled at the end of August) and therefore the
Company can be considered as fully invested. Considering the
significant rally that occurred on CLO debt tranches during the
summer, AXA IM expects to sell some of its old positions and buy
more recently issued deals in order to increase the projected yield
of the portfolio. As at the end of August, the weighted average
life (WAL) of Volta assets is close to 3.5 years. Volta still has
some room to extend both the WAL and the yield of our
portfolio.
AXA IM continues 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 €0.15
per share payable on 27 September 2016, the currency conversion
rate for those Shareholders who elected to receive pounds sterling
will be 0.85121 pounds sterling per euro, based on the foreign
currency exchange rate as at 18:00 (UK time) on 13 September 2016.
Consequently, the applicable pounds sterling dividend rate is
£0.1276815 per share.
* It should be
noted that approximately 10.9% 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 July 2016 for 10.1% of Volta's GAV and as at 30 June 2016 for
0.8% 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 €694 billion in assets under
management as of the end of June 2015. AXA IM employs
approximately 2,360 people around the world.
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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. The
company 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.
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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'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. Volta Finance 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.
*****
August 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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