Net Asset Value as at 30 September 2023
Volta Finance Limited (VTA / VTAS) –
September 2023 monthly report
NOT FOR RELEASE, DISTRIBUTION, OR PUBLICATION, IN WHOLE
OR PART, IN OR INTO THE UNITED STATES
***** Guernsey, 16 October 2023
AXA IM has published the Volta Finance Limited
(the “Company” or “Volta Finance” or “Volta”) monthly report for
September 2023. The full report is attached to this release and
will be available on Volta’s website shortly
(www.voltafinance.com).
PERFORMANCE and PORTFOLIO
ACTIVITY
Including the dividend to be paid in October
(record date in September), Volta Finance posted another positive
monthly performance in September 2023 (+1.6%) and has now delivered
a YTD performance of 18.6%.
Volta’s underlying sub asset classes monthly
performances** performed as follows: +0.7% for Bank Balance Sheet
transactions, +3.7% for CLO Equity tranches, -1.4% for CLO Debt
tranches and -0.1% for Cash Corporate Credit and ABS. This month,
being long USD against Euro provided circa +0.5% of
performance.
September recorded another strong month for
leveraged loans with US and European markets moving up again (ELLI
was up 1.1% while US LLI was up c.1.0% according to Pitchbook LCD)
even though some market softness started to show at the end of the
month alongside other credit markets. This impacted some of our US
CLO debt exposures that were marked lower at the end of the
month.
In terms of cashflows, Volta received €0.8m of
distributions through the month, and a cumulative total of €25.8m
in cashflow generation over the last 6 months. In addition, Volta
received some principal repayments from one Bank Balance Sheet
transaction for €1.5m reducing further the Bank Balance Sheet
exposure to 1.8%.
Regarding the European warehouse exposure, we
can report that the CLO priced in September and is expected to
close in November. The warehouse IRR is expected to be above 20%
and Volta is rolling its current exposure into the CLO Equity and
the CLO single B tranche. Overall, we expect over 15% IRR from the
blended investment.
Through the month, we also partially sold 2 US
CLO debts and opened another US warehouse to be able to benefit
from market volatility.
As of end of September 2023, Volta’s NAV was
€238.3m, i.e. €6.51 per share.
*It should be noted that approximately 1.48% 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 1.08% as at 31 July
2023, 0.40% as at 30 June 2023.
** “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 ManagerAXA
Investment Managers ParisFrançois
Touatifrancois.touati@axa-im.com+33 (0) 1 44 45 80 22
Company Secretary and
AdministratorBNP Paribas S.A, Guernsey
Branchguernsey.bp2s.volta.cosec@bnpparibas.com +44 (0) 1481
750 853
Corporate BrokerCenkos Securities plcAndrew
WorneDaniel 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
its capital across the credit cycle and to provide a stable stream
of income to its Shareholders through dividends that it expects to
distribute on a quarterly basis. The Company currently seeks to
achieve its investment objectives by pursuing exposure
predominantly to CLO’s and similar asset classes. A more
diversified investment strategy across structured finance assets
may be pursued opportunistically. 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
MANAGERSAXA 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 2,600 professionals and
€824 billion in assets under management as of the end of December
2022.
*****
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.
*****
- Volta - Monthly report-September
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