Volta Finance Limited : Net Asset Value(s)
(Thomson Reuters ONE) -
Volta Finance Limited (VTA) - March 2017 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 April 2017
AXA IM has published the Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") monthly report for March. The full report is attached to this
release and will be available on Volta's website shortly (www.voltafinance.com).
PERFORMANCE and PORTFOLIO ACTIVITY
In March, Volta's Estimated NAV* performance was +0.9%, in line with a positive
performance in most credit and equity markets.
During the month, Volta purchased three assets (two USD CLO debt positions, one
new USD CLO equity position) and the "CMV" announced in the January monthly
report was partly drawn down for an aggregate equivalent of ?13.4m. On average,
and based on standard market assumptions, the purchases and the CMV drawdown
have an average expected yield close to 10.7%. In March, three USD CLO debt were
sold or called for an aggregate equivalent of ?10.8m. On average, and based on
standard market assumptions, the average expected yield of these three assets
was close to 5.5%.
At the end of March 2017, Volta's Estimated NAV* was ?311.1m or ?8.51 per share
after a dividend of ?15 cents per share was paid. The GAV stood at ?357.7m.
In March, mark-to-market variations** of Volta's asset classes were: +0.7% for
Synthetic Corporate Credit deals; +1.8% for CLO Equity tranches; +1.5% for CLO
Debt tranches, -10.9% for Cash Corporate Credit deals; and +0.2% for ABS.
Cash corporate credit is a relatively small component of Volta (2.4% at the end
of March) and the negative performance was due to the final payment of a German
SME CDO (purchased by Volta in 2006) that depended on the assessment, by two
independent experts, of the value of a pool of defaulted SME loans. By nature,
this kind of final cash flow is always difficult to estimate. In recent years
this asset has produced material cash flows well in excess of expectations but
this last cash flow was below the carrying valuation. The impact was -0.4% to
the monthly performance of Volta.
During March, Volta generated the equivalent of ?0.7m 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 ?16.3m.
Cash holdings or cash equivalent instruments at the end of March totaled ?28.6m.
The current level of cash is higher than usual but reflects our view that credit
markets are now quite fully valued and better opportunities will arise in due
course. Typically we expect to be able to deploy more capital in CLO Equity
tranches and in Bank Balance Sheet transactions. We expect to utilize CLO
warehouse exposure as a way to access CLO equity positions with better
economics.
Volta's currency exposure was relatively stable during March and the exposure to
the US Dollar at month end was circa 24%.
A modest exposure continues to be maintained to duration, which was accretive to
returns during March. Volta ended the month with a positive 0.3 years of
duration via the overlay. In addition, a short position via options was
initiated on the S&P500 during March given the growing uncertainty around the
Trump administration. This S&P500 position is being utilized as a proxy credit
hedge and represents 2.5% of Volta's NAV. These hedges are aimed at seeking to
dampen downside volatility arising from shorter-term mark to market developments
that may arise. Ultimately, the returns of Volta continue to be predominantly
driven by the performance and the strong cash flows from the structured finance
assets held but we believe that these hedges will contribute to a better short-
term volatility profile.
* It should be noted that approximately 10.4% of Volta's GAV comprises
investments in funds 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 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 28 February 2017 for 9.5% 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.
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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Volta Finance Limited - March 2017 monthly report:
http://hugin.info/137695/R/2096621/793382.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: 19.04.2017 - 08:01 Uhr
Sprache: Deutsch
News-ID 536963
Anzahl Zeichen: 13861
contact information:
Town:
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Kategorie:
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