Volta Finance Limited : Net Asset Value(s)
(Thomson Reuters ONE) -
Volta Finance Limited (VTA) - April 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 May 2017
AXA IM has published the Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") monthly report for April. 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 April, Volta's Estimated NAV* performance was -0.5%. This slightly negative
performance is mostly due to the depreciation of the dollar against Euro,
contributing -0.5%. Underlying performance excluding the impact of currency was
modestly positive in line with very quiet credit markets in April.
During the month, Volta purchased two assets (one Euro CLO debt position and one
new USD CLO equity position), entered into a European CLO warehouse and, in
addition, the "CMV" announced in the January monthly report was partly drawn
down for an aggregate equivalent of ?19.2m. On average, and based on standard
market assumptions, the purchases and the CMV drawdown have an expected yield
close to 13%. In April, four CLO debt positions were sold or called for an
aggregate equivalent of ?21.2m. On average, and based on standard market
assumptions, the expected yield of these four assets was close to 5.8%.
At the end of April 2017, Volta's Estimated NAV* was ?309.7m or ?8.47 per share.
The GAV stood at ?355.8m. The variation relative to the Early Estimated NAV
reflects lower prices received for CLO equity positions.
In April, mark-to-market variations** of Volta's asset classes were: 0.0% for
Synthetic Corporate Credit deals; +0.1% for CLO Equity tranches; 0.0% for CLO
Debt tranches, +6.1% for Cash Corporate Credit deals; and +0.6% for ABS.
During April, Volta generated the equivalent of ?5.4m 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 ?15.7m.
Cash holdings or cash equivalent instruments at the end of April totaled ?36.6m.
The current level of cash is higher than usual and mainly reflects the strong
prepayments that occurred in April. Our view is still that credit markets are
now quite fully valued and this amount will be deployed in due course when
better opportunities arise. 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 April and the exposure to
the US Dollar at month end was circa 24% against circa 33% one year ago. The
negative contribution this month needs to be put in perspective with the
positive contribution for the previous 12 month period (circa +2.1% from March
2016 to March 2017). Volta currency exposures are modest and through time are
not expected to be a significant driver of performance.
A small exposure continues to be maintained to duration, which was accretive to
returns during April. The modest short position that was taken on the S&P500 was
closed with a very minor loss (less than 0.1%).These hedges are aimed at
dampening 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 8.8% 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: 31
March 2017 for 8.8% 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 ?717
billion in assets under management as of the end of December 2016. AXA IM
employs approximately 2,420 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 - 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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Volta Finance Limited - April 2017 monthly report:
http://hugin.info/137695/R/2106129/799481.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: 19.05.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 543742
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