Volta Finance Ld Volta Finance Limited: Net Asset Value As At 30 June 2020
10 Luglio 2020 - 6:25PM
UK Regulatory
TIDMVTA
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR PART, IN OR
INTO THE UNITED STATES
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Guernsey, 10 July 2020
AXA IM has published the Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") monthly report for June. The full report is
attached to this release and will be available on Volta's website
shortly (
https://www.globenewswire.com/Tracker?data=MJMFTQQW5WDbHjTLtmhoNsjrsGi_JJ9a_5Svxeq7K9y_BDlk-XOBhHk4TiOY1ibJm7mTGJhFGVQoS1wF4EXkJUp1Y0pZ-fMLmD_0vXyvIok=
www.voltafinance.com).
PERFORMANCE and PORTFOLIO ACTIVITY
June delivered another month of strong performance after May and April,
helping further to recover the mark-to-market impact of the COVID-19
pandemic. Accounting for the EUR0.10 per share dividend paid 16(th) of
June, Volta's NAV* total return performance in June was +6.9%.
With the increased confidence around cash flows from underlying assets
over the medium term, not only was the Company able to restore the
dividend ordinarily payable in April but has further declared a dividend
of EUR0.11 per share payable on 29th July 2020, which is a return to the
Company's original payment timetable.
The monthly performances** were, in local currency: +0.8% for Bank
Balance Sheet transactions, +9.5% for CLO Equity tranches; +13.0% for
CLO Debt; -0.6% for Cash Corporate Credit deals (this bucket compromises
of funds that have a one-month delay in publishing their NAV); and -6.2%
for ABS.
At the end of the month, the average price for USD CLO debt was 71.8%.
All the company's USD CLO debt positions are receiving their coupons in
full, none of them has been downgraded and 10 of them are "Watch Neg"
either with Moody's or S&P (none with Fitch). We continue to be highly
confident that all these positions will go through the current crisis
without any loss and continue to think that the latest prices do not
reflect the embedded value of these positions.
Regarding our CLO Equity positions, the July cash flow payments are due
over the coming weeks. Of all our positions, only one is expected to
suffer a diversion of cash flow in July. It is a position from 2013 that
has already significantly amortized. In normal market conditions, this
position would have been called as the arbitrage in favor of the equity
is less and less attractive now that all the original AAA debt tranche
has been prepaid.
Of the other CLO equity positions, 3 out of 46 came close to breaching a
reinvestment test but all three have now seen improvement in May and
June and now have larger cushions.
So far, the consequences of the COVID-19 crisis are being smoothed
through time as the increase in default rates is very slow. This means
that CLO managers have more time to re-arrange portfolios to avoid
diversion of cash flows and generate added value.
There has been widespread comment that private equity funds raised
billions of new capital in recent months. For Loans and CLOs, it means
that we should expect an acceleration of M&A activity over the coming
months. Some loans, even some trading at a discount, will be called at
par and that will permit an acceleration in reinvestment opportunities
for CLO managers. As a reminder, in 2009 even though default rates
peaked near 10%, the prepayment rate in the US loan market was close to
10% rising to nearly 20% in 2010.
This comment is not to suggest that the future is rosy but it might be
far less dark than it appeared just a few months ago and less gloomy
than current CLO pricing suggests.
As usual, June was a quiet month in terms of interest and cash flows
received with only the equivalent of EUR0.6m received. On a six-month
basis, we are still close to Volta's historical high with the equivalent
of EUR21.5m received as at the end of June.
In June Volta invested EUR4.1m through one newly issued EUR BB CLO
tranche and additional capital was called by the existing CMV.
As at the end of June 2020, Volta's NAV was EUR214.9m or EUR5.87 per
share.
The month-end cash position was EUR4.3m. Considering the payment of the
dividend in July and the necessity to maintain a working capital balance
to cover potential margin calls from currency hedging positions and
further capital calls from pre-existing investments, Volta was almost
fully invested as of the end of June. With the cash flows due in July,
Volta will have again some room for investments.
*It should be noted that approximately 11.4% 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 note. The most recently available fund NAV or quoted price
was for 5.7% as at 31 May 2020, 5.7% as at 31 March 2020.
** "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.
CONTACTS
For the Investment Manager
AXA Investment Managers Paris
Serge Demay
https://www.globenewswire.com/Tracker?data=z6lwm5hY58Arghs2DtUrqDILw9ISqFMEk1Xe60aOSV51uKyNtd_rTIik5u8O3qQ5iarLLPQWTVhX-Y7aL_0HntTsWy068IgdpfcGdgmVjkE=
serge.demay@axa-im.com
+33 (0) 1 44 45 84 47
Company Secretary and Administrator
BNP Paribas Securities Services S.C.A, Guernsey Branch
https://www.globenewswire.com/Tracker?data=bVxi7HzoniuMXue5cNOcHcfyENoQfsucimTD14-pQer6q7TWaR5Bcgv0CJzH62DI90lXTRZfm27IoAt684nJ3AgfHe6HzXGUP4XC8dDTu6T0U944cclC4rCTNgXONYjl3bIaAdila5j0FlDFgtOjwdUYSqIggF9RDTHi_39AE7s0rCFPHhR5df-bKp2Uzlfc7TwLzIgc6gletkvSQLOF0Sqdm5L-e30HBWhCL3GlwDx0rtO6iuLjLy6PJ3pEepNmBnLA-EJ7ys38_XxSyIMlL04HzT-bi7khxLkwMoNqVzaaQpQvdxYoG2u3wH_4GSAo4BvUmTeHGX_Whhllso9kGfncrUzXP1nfS5HFwYxfKelK69725VQR24AcBu4MJSoK
guernsey.bp2s.volta.cosec@bnpparibas.com
+44 (0) 1481 750 853
Corporate Broker
Cenkos Securities plc
Andrew Worne
Daniel Balabanoff
Rob Naylor
+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 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 753 investment professionals and EUR801 billion in assets
under management as of the end of April 2020.
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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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(END) Dow Jones Newswires
July 10, 2020 12:25 ET (16:25 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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