Volta Finance Ld Net Asset Value As At 31 March 2019
23 Aprile 2019 - 6:00PM
UK Regulatory
TIDMVTA
Volta Finance Limited (VTA / VTAS) -- March 2019 monthly report
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR
INTO THE UNITED STATES
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Guernsey, 23 April 2019
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 NAV* total return performance was +0.5%, bringing the
YTD performance to 4.0% after a volatile end to 2018.
Volta paid a quarterly dividend (EUR0.15 per share) on the 28(th) March
(the ex-dividend date was the 7(th) March).
This positive performance was driven mainly by the good performance of
bank balance sheet transactions (+0.7% for the month) and of CLO debt
tranches (+0.6%). The performances of Volta's other asset classes in
local currencies were: -0.2% for CLO Equity tranches; +0.7% for Cash
Corporate Credit deals; and +0.4% for ABS.
As at the end of March, Volta was fully invested having purchased three
new positions (1 Bank Balance Sheet transaction and 2 CLO Equity
positions, one in Euro and one in USD) for a total of the equivalent of
EUR24.2m. On average, using market standard assumptions, the projected
yield of such purchases was 12.6%. Some of these purchases have a
settlement in April, explaining why the cash position of Volta at the
end of March was negative (on a trade date basis not on a settlement
date basis).
At the end of March, Volta still had exposure to a CLO warehouse, which
does not carry any more credit risk as the underlying CLO equity has
been priced. The realized IRR on this warehouse is to be confirmed
shortly (after the very last settlement in April) but it should likely
be between 25 and 30%.
Being at the end of the first quarter of this year, it makes sense to
reassess our view for 2019. What we observed, almost everywhere in the
credit markets and it is even more true in structured finance, is that,
on average, the maturity curve and the credit curve are very steep. For
CLO debt tranches it has been rare to see such a steep maturity curve
(same rating assets are yielding far more with a long maturity than with
a mid to short term maturity). This situation characterizes periods in
which investors, are globally cautious in the way they deploy capital
(avoiding long credit duration instruments and the most sensitive ones).
This situation is very encouraging for the rest of the year even though
we continue to think that it is near the end of the economic and credit
cycles and that at some point in time more volatility will come back.
The fact that investors are cautious limits the probability of a brutal
rise in volatility in the coming months/quarters. More and more we think
that the probability of having in 2019 a second spike of volatility like
the one we had in Q4 2018 is declining. This overall cautiousness makes
us a bit more comfortable deploying all the capital (balancing risks)
and avoiding having too much cash.
We continued increasing our CLO equity tranche exposure and reducing CLO
debt tranches as the CLO equity tranches are already benefiting from the
fact that spreads stopped tightening in loan markets (we have noticed
for some months that the CLO managers we selected have been able to
increase the WAS (Weighted Average Spread) of the underlying loan pools,
generating higher cash flows to the CLO Equity positions).
In March, Volta generated the equivalent of EUR0.2m 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
EUR19.6m.
As at the end of March 2019, Volta's NAV was EUR287.8m or EUR7.87 per
share. The GAV stood at EUR326.3m.
*It should be noted that approximately 11.2% 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 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 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 6.9% as at 28 February 2019, 2.9% as at 31 December 2018
and for 1.4% as at 28 September 2018. ** "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@axa-im.com
https://www.globenewswire.com/Tracker?data=xCI-dAox31KMl8-wb8Uf_9Qf61v1aWAiVC_kygcA1gPnE3WRm3UobEsFYBL5_fqSjpEvtJg5OPUaazxPeH4DJGvGOGeQk7rywDt_hPCU2dk=
+33 (0) 1 44 45 84 47
Company Secretary and Administrator
BNP Paribas Securities Services S.C.A, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com
https://www.globenewswire.com/Tracker?data=0LU3W1CfsEAxl9am2l7skyPza6wzBGUtyYTQbu23P-1aePDBMpUKSqtCdUI5Y-ysStyrEgrSkfmLs0oCdh_2M75Kj6XLySGlmZtuSHBxlxCoyDU8miR8N1OESc7amK9qSDtYc8WZr3KxV8QYjM-yB3WiKjbtXQCVP-LMsc7R8g52sEDXcNAVvp_LqqP3GwglItCVEmke2A2cIg42VmODreJepIq8d1Za7sCeHljKn1iZ5DCQNrRafcFUgAopGaNoKFM-75Zqk0jTXdOr_KG5h0by2CeBtl0l55r7Pio1U-ME1Zr1aP7ycY6t4EgCmdKtCsVN-LZzf9i9UyJzJP-4AcWRo8q3-6VggIXyO-Op-nF7zYWr8jj2_JMtuBC0LUTI
+44 (0) 1481 750 853
Corporate Broker
Cenkos Securities plc
Andrew Worne
Oliver Packard
Sapna Shah
+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 766 investment professionals and EUR759 billion in assets
under management as of the end of June 2018.
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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.
*****
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.
*****
Attachments
-- March 2019 Monthly Press Release Final
https://ml-eu.globenewswire.com/Resource/Download/818efcb3-2643-41ac-ae0f-234d9d328ec9
-- Volta - Monthly Report - March 2019
https://ml-eu.globenewswire.com/Resource/Download/d6a3466a-f5ca-4cd1-88ca-793ca7cb7232
(END) Dow Jones Newswires
April 23, 2019 12:00 ET (16:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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