Volta Finance Limited : Net Asset Value(s)
(Thomson Reuters ONE) -
Volta Finance Limited (VTA) - December 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, 19 January 2017
AXA IM has published the Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") monthly report for December. The full report is attached to this
release and is available on Volta's website (www.voltafinance.com).
PERFORMANCE and PORTFOLIO ACTIVITY
In December, Volta's Estimated NAV* performance was 1.4% including the December
dividend payment (?0.16 per share). It is in line with a positive performance in
most credit and equity markets.
For 2016, the NAV performance was 15.2%, adjusting for the April, September and
December dividend payments. This good performance was mostly due to the strong
performance of the CLO Equity and CLO debt buckets. The rest of the portfolio
provided diversification and stability to the portfolio as illustrated by the
relatively modest drawdown of Volta's NAV in Q1 2016. Our ability to rotate the
portfolio through the year was also key in producing such a performance.
In December, Volta purchased two positions (one Euro CLO Equity and one Bank
Balance Sheet transaction) for a total of ?16.1m and sold four positions (3 CLO
debt tranches and the remaining UK non-conforming residual position) for a total
of the equivalent of ?14.0m. On average and based on standard market
assumptions, the purchases were executed with an average expected yield close to
12.5% and the sales were traded with an average expected yield of close to 6.5%.
At the end of December 2016, Volta's Estimated NAV* was ?306.4m or ?8.39 per
share. The GAV stood at ?351.4m.
In December, mark-to-market variations** of Volta's asset classes were: +0.2%
for Synthetic Corporate Credit deals; +1.5% for CLO Equity tranches; +2.2% for
CLO Debt tranches, -0.4% for Cash Corporate Credit deals; and -0.1% for ABS.
In December, Volta generated the equivalent of ?1.1m in interest and coupons net
of repo costs (non-euro amounts translated into euro using end-of-month cross
currency rates), bringing the total cash amount generated during the last six
months in terms of interest and coupons net of repo costs to ?14.6m.
Cash holdings or cash equivalent instruments at the end of December totaled
?16.0m and we expect to invest in some recent transactions, including some Bank
Balance Sheet transactions, in early 2017.
On top of that, considering the significant rally that occurred on CLO debt
tranches since the summer, we expect to continue selling some of the old debt
positions and buying more recently issued ones as well as CLO Equity positions
in order to increase the projected yield of the portfolio.
Again this month, the US Dollar appreciated somewhat against the Euro which is
beneficial to Volta as the US Dollar exposure is in the area of 26%.
In November and December we added some duration through the US 5YR Note Future.
At the time of writing this report we took some profits on this position that
represents circa 0.75 year of duration. AXA IM believes that fixed rate exposure
(at a reasonable interest rate level) can provide a good hedge against further
potential economic disappointments.
We continue to see opportunities in several structured credit sectors including
mezzanine and equity tranches of CLOs and Bank Balance Sheet transactions.
* It should be noted that approximately 10.9% of Volta credit sectors including
mezzanine and equity tranches of CLOs and Bank Balance Sheet transactions.s
circa 0.75 year of duration. AXNAV 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 0.9% of Volta's GAV and as at 30 November 2016 for 10.0% of
Volta's GAV.
** "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.
CONTACTS
For the Investment Manager
AXA Investment Managers Paris
Serge Demay
Serge.demay(at)axa-im.com
+33 (0) 1 44 45 84 47
Company Secretary and Portfolio Administrator
Sanne Group (Guernsey) Limited
voltafinance(at)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 distributed and 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.
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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. 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 - 92908 Paris La Défense cedex, a company incorporated under the laws
of France, having its register Management Company, holder of AMF Approval no. GP
92-08, issued on 7 April 1992.
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December 2016 Monthly Report:
http://hugin.info/137695/R/2072117/778704.pdf
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
Unternehmensinformation / Kurzprofil:
Datum: 19.01.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 518613
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