17.06.2024 18:15:06 - dpa-AFX: GNW-Adhoc: Volta Finance Limited Net Asset Value as at 31 May 2024
Volta Finance Limited (VTA / VTAS) - May 2024 monthly report
NOT FOR RELEASE, DISTRIBUTION, OR PUBLICATION, IN WHOLE OR PART, IN OR INTO THE
UNITED STATES
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Guernsey, June 17(th), 2024
AXA IM has published the Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") monthly report for May 2024. The full report is attached to this
release and will be available on Volta's website shortly (www.voltafinance.com
(http://www.voltafinance.com)).
PERFORMANCE and PORTFOLIO ACTIVITY
Dear investors,
May was a strong month for Volta Finance, with a net performance of 1.7% and
year-to-date return close to +9.5%. In comparison, US High Yield returned
+1.63% year-to-date while European High Yield returned +2.57%.
Despite volatile markets, credit markets performed well in May. The momentum was
fueled - in Europe - by anticipation of imminent rate cuts from the European
Central Bank, which were eventually implemented early June. Both High Yield
Credit indices CDX (for the US) and Xover (for Europe) tightened by 20bps+ on
the month while US 10-year treasuries decreased from 4.68% to 4.50%. Leveraged
Loan markets also showed strength as Euro Loans gained one point to 98.15px
while the US index closed 30 cents up at 96.94px.
Primary CLO markets remained extremely active, with significant issuance in both
markets: there was circa USD 47bn of supply in the US (BSL + MML) and EUR 8.5bn
in Europe. Spreads tightened across the capital structure with AAAs moving 5bps
tighter to +140bps ; Non-Investment Grade assets also gained momentum as Tier
One CLO managers managed to place their BB-rated tranches well inside +600bps in
the US.
Fundamentals in both underlying loan markets continued to display no sign of
weakness, notably with default rates down to 1.08% in the US and 1.48% in
Europe. At the same time, the pick-up in loan refinancings has been increasing
the speed of prepayments in amortizing CLOs and fueling CLO refinancing and
reset activity.
Volta Finance's investment portfolio benefited from this search for yield, with
mark-to-market valuations for CLO debt tranches increasing and CLO Equity
investments returning over 3% on the month due to a combination of both higher
valuation and strong payments. Through the month, Volta engaged in various
transactions, including swapping from an amortizing US CLO debt tranche into a
longer profile one, adding to an existing CLO Equity (EUR0.1m) and funding EUR1.6m
of a European CLO warehouse. The cashflow generation over the last 6 months
remained strong at c. EUR28.4mm equivalent of interests and coupons on an
annualized basis, representing 22% of this month's NAV.
Volta's underlying sub asset classes monthly performances** were as follow:
+1.4% for Bank Balance Sheet transactions, +3.2% for CLO Equity tranches, +2.4%
for CLO Debt tranches and -1.3% for Cash Corporate Credit & ABS(***), cash
representing c.8% of NAV.
As of end of May 2024, Volta's NAV was EUR262.9m, i.e. EUR7.19 per share.
*It should be noted that approximately 0.49% 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 0.26% as at 30 April 2024, 0.23% as at 31 March 2024.
** "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.
*** The cash Corporate Credit and ABS bucket is currently made of 3 legacy
assets representing 0.8% of GAV.
CONTACTS
For the Investment Manager
AXA Investment Managers Paris
François Touati
francois.touati@axa-im.com (mailto:serge.demay@axa-im.com)
+33 (0) 1 44 45 80 22
Olivier Pons
Olivier.pons@axa-im.com (mailto:Olivier.pons@axa-im.com)
+33 (0) 1 44 45 87 30
Company Secretary and Administrator
BNP Paribas S.A, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com
(https://www.globenewswire.com/Tracker?data=8TYqe1zzDqrQV8m8k-
fbuFfCPWcNVqXrTTQMy3Vw8CpoBFOGhqpPpexeVMzzK3ctUViX81WWkeuOxG9NHYG9jpMG8R0hD_N6-
LtgNWE1arDUTmA3IXFWi7YN-Tx87SohQjtqLRvKjC0Xt9Uez6CGwy7YMZBDTJNaoPfIdb0fq48=)
+44 (0) 1481 750 853
Corporate Broker
Cavendish Securities plc
Andrew Worne
Daniel Balabanoff
+44 (0) 20 7397 8900
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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 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.
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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
2,600 professionals and EUR824 billion in assets under management as of the end of
June 2023.
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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.
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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 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.
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