TIDMVTA
Volta Finance Limited (VTA / VTAS) -- September 2021 monthly
report
NOT FOR RELEASE, DISTRIBUTION, OR PUBLICATION, IN WHOLE OR PART,
IN OR INTO THE UNITED STATES
*****
Guernsey, 12 October 2021
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
September's performance, including the EUR0.14 dividend per
share paid at the end of September, was outstanding at 1.9%
relative to the negative performance for most equity markets. The
year-to-date total return of the company is 15.0%.
This recently observed uncorrelated performance may result from
being predominantly invested in floating-rate instruments
(corporate loans through CLOs) and having a relatively short
duration. Noting that this negative correlation may be
temporary.
With ongoing cash flows continuing at a pace close to 20%
(annualized), Volta's strategy is expected to differ from
investments like equity strategies (especially growth stocks) that
may be more sensitive to long-term interest rates. In this way,
Volta looks like a perfect complement to classic equity exposure,
with a performance that exhibits less dependence on long-term
dividend growth and profitability and more on short to medium-term
company solvency.
At the end of September, the 12-month default rate was at 0.5%
for US loans and 0.8% for European loans. Companies can more easily
refinance their debt and M&A activity is frequently providing
an exit strategy to some of the stocks that suffered the most from
the Covid crisis. Whatever the exit strategy being pursued so far,
many loans found a way to refinance and the maturity wall is being
extended towards 2027-2028, reducing significantly the probability
of default for the coming few years.
Turning to the details, the monthly asset class performances**
were: +0.8% for Bank Balance Sheet transactions, +2.1% for CLO
equity tranches; +0.2% for CLO debt; +0.3% for Cash Corporate
Credit and ABS (together representing 3.0% of NAV). In September,
USD appreciation against Euro contributed +0.8% to the overall
performance
As usual, September is a relatively low volume month in terms of
interest and coupons with the currency equivalent of EUR1.3m being
received. On a 6-month rolling basis, Volta had received the
currency equivalent of EUR26.5m to the end of September,
representing a 20.0% annualised cash flow yield, based on the end
of the month NAV.
In September, Volta had a EUR1m BB tranche called and made no
new investment. As at the end of September Volta held nearly EUR12m
of cash available for re-investment. The pipeline in the primary
market for CLO issuance, both in the US and in Europe, is extremely
high for October (with an unprecedented volume YTD) that we are
expecting some spread widening and to be able to reinvest cash at
attractive levels.
As at the end of September 2021, Volta's NAV was EUR264.8m or
EUR7.24 per share.
*It should be noted that approximately 8.0% 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 NAV on as
timely a basis as possible 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 notes. The most
recently available fund NAV or quoted price was 1.7% as at 31
August 2021, 5.5% as at 31 July 2021, and 0.8% as at 30 June
2021.
** "performances" of asset classes are calculated as the
Dietz-performance of the assets in each bucket, taking into account
the Mark-to-Market of the assets at period ends, 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
https://www.globenewswire.com/Tracker?data=_Vs-T3g-wzP44n-ja60D3ACjrZvR5lOsmJKEuZV1rK0JklQixuK8Sojxbtth7S2udFDCi-oMQqPkK6wVrGiPqi8oxqmSkkFrQ7m4P-Q-Me0=
+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
https://www.globenewswire.com/Tracker?data=4Qtb0_g7RjCuJLUHdPlGzwxvEwOk56gZIHUQhKEKv2nEKdEOPHTbeRPp503Qhk2qVkIlPiwAYkyUNgAN-MDeHuRDg51Fr1rYOAifXjb755dwPKIWGONv72ODV4jq3f71TxdPGVbbUetgESEPhojrYi4B7YKKmtx8vDqvhBBkC2qyC66zyrdSRjseWczRxkLMhFJonxyqM3MpS7kfVbnrKV9aBBVz-_lslVLTjkD7Pj2Ih7t2-Ddz9XvNamxgcTkx_lOtyL1zD36DNNkrYF2uEJ6mwG3lj-I-Pkp_oH_l1MtY3xKqFgwOatv561mUi95wvI6mK3BMUt1faargd4KZsSkeYtmh02_jSauiTMVSUIp-aoDPboU1b6kvbSltNi5t
+44 (0) 1481 750 853
Corporate Broker
Cenkos Securities plc
Andrew Worne
Daniel Balabanoff
+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 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 767 investment
professionals and EUR866 billion in assets under management as of
the end of June 2021.
*****
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.
*****
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.
*****
Attachment
-- Volta - September Monthly Report
https://ml-eu.globenewswire.com/Resource/Download/e9501bca-b4d4-4e5e-85b5-134a021520ec
(END) Dow Jones Newswires
October 12, 2021 12:15 ET (16:15 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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