Volta Finance Ld Volta Finance Limited : Estimated Net Asset Value As At 31 December 2017

 
TIDMVTA 
 
 
   Volta Finance Limited (VTA) - December 2017 monthly report 
 
   NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR 
INTO THE UNITED STATES 
 
   ***** 
 
   Guernsey, 19 January 2018 
 
   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 will be available on Volta's website 
shortly (www.voltafinance.com). 
 
   PERFORMANCE and PORTFOLIO ACTIVITY 
 
   In December, Volta's Estimated NAV* performance was +0.6% (taking into 
account the December dividend payment), bringing the performance for the 
year to date to 6.6% (dividends reinvested at NAV). 
 
   On 21 December, Volta paid a quarterly dividend of 0.16 euro per share 
(with an ex-dividend date of 30 November) representing an annualised 
yield of 9% based on the end of November share price. 
 
   The annual performance is somewhat below that recorded in the last few 
calendar years, primarily on account of the negative performance drag 
caused by currency exposure to the US Dollar (nearly 30% of the NAV on 
average through 2017). The overall estimated impact of currency 
exposures for 2017 is -3.6%, meaning that the performance of Volta, 
prior to the currency impact is above 10% (net of fees) for 2017. As we 
have noted previously, foreign currency exposure is not fully hedged 
back to Euro to avoid excessive liquidity demands if hedges were to move 
adversely and also to limit the cash drag that arises from the need to 
maintain margin against open hedges. This strategy has been in place for 
many years and historically has not had any material impact on the mid 
to long-term performance of Volta as the Euro/dollar cross rate has been 
relatively stable for many years. 
 
   Late in December, Volta received the equivalent of EUR24.2m of 
prepayments from two positions. These repayments account for the rather 
significant amount of cash held at the end of December. Prepayment 
levels were very high in 2017 and this, in large part, accounted for 
periodically higher levels of cash in the Company than would be usual. 
However, it is encouraging that, throughout the year, we have continued 
to be able to source and reinvest in new opportunities at attractive 
IRRs, which bodes well for future returns. Volta was drawn on one asset 
(the lease transaction that was sourced in 2016) for the equivalent of 
EUR1.4m during December. 
 
   In 2018 we anticipate continuing to increase exposure to the CLO Equity 
bucket as well as the Bank Balance sheet bucket. It is expected that we 
will continue to do so at the expense of CLO Debt positions given the 
significant tightening of CLO debt tranches. This tandem increase to CLO 
Equity and Bank Balance sheets from CLO Debt means that aggregate risk 
levels should not increase meaningfully. 
 
   At the end of December 2017, Volta's Estimated NAV was EUR304.0m or 
EUR8.32 per share. The GAV stood at EUR347.4m. 
 
   In December, mark-to-market variations of Volta's asset classes were: 
+0.5% for Bank Balance Sheet Transactions; +1.0% for CLO Equity 
tranches; +2.1% for CLO Debt tranches, 0.0% for Cash Corporate Credit 
deals as well as for ABS. 
 
   In December, Volta generated the equivalent of EUR1.9m 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 
EUR17.4m. 
 
   *It should be noted that approximately 11.5% 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 for 8.9% as at 30 November 2017 and for 
2.6% as at 29 September 2017. 
 
   ** "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. 
 
   This announcement contains information that is inside information for 
the purposes of the Market Abuse Regulation (EU) No. 596/2014. Upon the 
publication of this announcement via Regulatory Information Service this 
inside information is now considered to be in the public domain. 
 
   CONTACTS 
 
   For the Investment Manager 
 
   AXA Investment Managers Paris 
 
   Serge Demay 
 
   [e-mail] 
 
   [phone] 
 
   Company Secretary and Portfolio Administrator 
 
   Sanne Group (Guernsey) Limited 
 
   [e-mail] 
 
   [phone] 
 
   Corporate Broker 
 
   Cenkos Securities plc 
 
   Oliver Packard 
 
   Andrew Worne 
 
   Sapna Shah 
 
   [phone] 
 
   ***** 
 
   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. 
 
   ***** 
 
   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 EUR717 billion in assets under management as of the end of 
December 2016. AXA IM employs approximately 2,420 people around the 
world. 
 
   ***** 
 
   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. 
 
   ***** 
 
   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. 
 
   ***** 
 
   Volta Finance Limited - December 2017 monthly report: 
http://hugin.info/137695/R/2162655/831897.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 
 
 
  http://www.voltafinance.com 
 

(END) Dow Jones Newswires

January 22, 2018 02:00 ET (07:00 GMT)

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