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
NAV1 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 €4.3m and sold two
positions (one ABS Debt asset and one emerging market credit CDO)
for a total of the equivalent of €6.1m. 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 NAV1 was €300.1m
or €8.21 per share. The GAV stood at €342.3m.
In October, mark-to-market
variations2 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
equivalent3 of €6.0m 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 €15.8m.
Cash holdings or cash equivalent
instruments at the end of October totaled €10.6m 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: €16 cents per share to be paid on 22 December
2016, bringing the total dividend payments for 2016 to €62 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 €679 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.
*****
Volta Finance Limited - October
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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