Volta Finance Ld Volta Finance Limited : Net Asset Value(s)
21 November 2016 - 6:00PM
UK Regulatory
TIDMVTA
Volta Finance Limited (VTA) - October 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, 21 November 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 October, Volta's Estimated NAV(1) performance was 2.0%, in line with
modest positive performance in most credit markets.
As at the end of October, the YTD NAV performance was 10.9%, 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.
In October, Volta purchased two CLO Equity positions in the secondary
market (one USD and one Euro tranche) for a total of the equivalent of
EUR4.3m and sold two positions (one ABS Debt asset and one emerging
market credit CDO) for a total of the equivalent of EUR6.1m. On average
and based on standard market assumptions, the purchases were executed
with an average expected yield close to 10.5% and the sales were traded
with an average expected yield of close to 5%.
At the end of October 2016, Volta's Estimated NAV(1) was EUR300.1m or
EUR8.21 per share. The GAV stood at EUR342.3m.
In October, mark-to-market variations(2) of Volta's asset classes were:
-0.4% for Synthetic Corporate Credit deals; +3.0% for CLO Equity
tranches; +0.4% for CLO Debt tranches, +1.9% for Cash Corporate Credit
deals; and, -0.1% for ABS.
In October, Volta generated the equivalent(3) of EUR6.0m in interest and
coupons net of repo costs, bringing the total cash amount generated
during the last six months in terms of interest and coupons during the
last six months to EUR15.8m.
Cash holdings or cash equivalent instruments at the end of October
totaled EUR10.6m and the Company can be considered as almost fully
invested. Considering the significant rally that occurred on CLO Debt
tranches during the summer, AXA IM expects to continue selling some of
its old 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 was beneficial to Volta as the US Dollar exposure was in the
area of 30%. US mid and long term rates have increased toward levels
unseen for some time and Volta added some duration in mid-November
through the US 5YR Note Future. AXA IM believes that fixed rate exposure
(at a reasonable level) can provide a good hedge against further
potential economic disappointments.
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.
Volta announced its next quarterly dividend payment: EUR16 cents per
share to be paid on 22 December 2016, bringing the total dividend
payments for 2016 to EUR62 cents per share (a yield of 8.7% based on the
end of October 2016 share price.
(1) 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: 30 September 2016 for 7.5% of
Volta's GAV and as at 31 August 2016 for 3.4% of Volta's GAV.
(2) "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.
(3) Non-euro amounts translated into euro using end-of-month cross
currency rates.
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.
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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.
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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'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.
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Volta Finance Limited - October 2016 monthly report:
http://hugin.info/137695/R/2058095/771258.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
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