VOLTA FINANCE LIMITED (AMS:VTA) Volta Finance Limited - Net Asset Value as at 28 February 2019

Directive transparence : information réglementée

15/03/2019 18:00

Volta Finance Limited (VTA / VTAS) – February 2019 monthly report


Guernsey, 15 March 2019

AXA IM has published the Volta Finance Limited (the “Company” or “Volta Finance” or “Volta”) monthly report for February. The full report is attached to this release and will be available on Volta’s website shortly (www.voltafinance.com).


In February, Volta’s NAV* total return performance was +0.4%, bringing the YTD performance to 3.5% after a volatile end to 2018.

Volta will pay its quarterly dividend (€15 cents per share) on the 28th March (the ex-dividend date was the 7th March).

This positive performance was driven mainly by the good performance of bank balance sheet transactions (+1.2% for the month) and of CLO debt tranches (+0.8%). The performances of Volta’s other asset classes in local currencies were: -0.4% for CLO Equity tranches; +0.1% for Cash Corporate Credit deals; and +0.5% for ABS.

Volta is almost fully invested when taking into account the need to keep cash for the dividend being paid in March. In February we added $2m capital to a CLO warehouse.  Currently, we hold only one warehouse, which was opened in late 2018. At the time of writing this warehouse facility has been successfully converted into a CLO. Because this warehouse was opened late in 2018 we avoided the painful situation faced by some market participants who have warehouse facilities holding expensive loans purchased several months previously and who now are struggling to convert the warehouse into a CLO.

Despite the recent volatility, Volta’s assets continue to perform well. As an example, our CLO Equity positions, both in Europe and the US, are exposed to loan portfolios that hold fewer Caa1 or below rated loans than the market: 1.5% for our European positions against 1.6% for the market and 2.6% for our US positions against 4.1% for the market(1).

These statistics together with the very low level of defaults experienced both for US and European loans are signs that despite the recent volatility, the fundamentals are still supportive.

As we are increasing our CLO equity tranches and reducing CLO debt tranches, we are reducing Volta’s leverage on its CLO debt by $10m. We now prefer to take exposure to leverage through the long-term embedded borrowings provided by CLO Equity rather than leveraging CLO Debt through the repo, even though the repo is attractively structured.  This repayment was done through cashflow generation and not through sales of debt tranches.

In February, Volta generated the equivalent of €0.6m in interest and coupons net of repo costs (non-Euro amounts translated into Euro using end-of-month cross currency rates). This brings the total cash amount generated during the last six months in terms of interest and coupons to €20.1m; 13.8% on an annual basis of Volta’s NAV. The projected IRR of Volta’s current portfolio is 12% using reasonable and market standard assumptions.  The 1.3% difference from the current yield of the portfolio reflects the assumption that at some point in time we will experience more defaults than we have experienced in recent years.

As at the end of February 2019, Volta’s NAV was €292m or €7.98 per share. The GAV stood at €340.9m.

*It should be noted that approximately 10.5% 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 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 are valued using the most recently available NAV for each fund or quoted price for such subordinated note. The most recently available fund NAV or quoted price was for 6.5% as at 31 January 2019 and for 4.0% as at 28 September 2018. ** “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.
(1) Source Intex : comparable deals with same vintage and currency


For the Investment Manager
AXA Investment Managers Paris
Serge Demay
+33 (0) 1 44 45 84 47

Company Secretary and Administrator
BNP Paribas Securities Services S.C.A, Guernsey Branch
+44 (0) 1481 750 853

Corporate Broker
Cenkos Securities plc
Andrew Worne
Oliver Packard
Sapna Shah
+44 (0) 20 7397 8900


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.


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 766 investment professionals and €759 billion in assets under management as of the end of June 2018. 


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.



February 2019 Monthly Press Release final