Volta Finance Ld Volta Finance Limited : Net Asset Value

 
TIDMVTA 
 
 
   Volta Finance Limited (VTA) - August 2016 monthly report 
 
   NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR 
INTO THE UNITED STATES 
 
   ***** 
 
   Guernsey, 22 September 2016 
 
   Volta Finance Limited (the "Company" or "Volta Finance" or "Volta") has 
published its monthly report. The full report is attached to this 
release and is available on Volta's website (www.voltafinance.com). 
 
   PERFORMANCE and PORTFOLIO ACTIVITY 
 
   In August, Volta's Estimated NAV gained 2.8% in line with the modest 
positive performance in most credit and equity markets. 
 
   As at the end of August, the YTD NAV performance is 7.4%, including the 
April dividend payment. Volta expects to produce a performance in the 
area of 10% for this year, after 10.0% in 2015 and 12.4% in 2014. 
 
   In August, Volta purchased one USD CLO Equity in the secondary market 
and signed for a new European CLO warehouse. A total of the equivalent 
of EUR5.2m was invested in these two positions (only one third of the 
total commitment for the warehouse was drawn). On average and based on 
standard market assumptions, these purchases have an expected yield of 
close to 11.5%. During the month no position was sold or amortised. 
 
   At the end of August 2016, Volta's Estimated NAV* was EUR295.6m or 
EUR8.09 per share. The GAV stood at EUR338.4m. 
 
   In August, mark-to-market variations** of Volta's asset classes were: 
+1.6% for Synthetic Corporate Credit deals; +2.4% for CLO Equity 
tranches; +3.1% for CLO Debt tranches, +4.4% for Cash Corporate Credit 
deals; and, +3.3% for ABS. 
 
   In August, Volta generated the equivalent of EUR1.4m in interest and 
coupons (non-euro amounts translated into euro using end-of-month cross 
currency rates), bringing the total cash amount generated in terms of 
interest and coupons during the last six months to EUR17.3m. 
 
   Cash holdings or cash equivalent instruments at the end of August 
totaled EUR3.4m (after reductions for some trades unsettled at the end 
of August) and therefore the Company can be considered as fully 
invested. Considering the significant rally that occurred on CLO debt 
tranches during the summer, AXA IM expects to sell some of its old 
positions and buy more recently issued deals in order to increase the 
projected yield of the portfolio. As at the end of August, the weighted 
average life (WAL) of Volta assets is close to 3.5 years. Volta still 
has some room to extend both the WAL and the yield of our portfolio. 
 
   AXA IM continues to see opportunities in several structured credit 
sectors including mezzanine and equity tranches of CLOs, RMBS tranches 
and tranches of Cash Corporate Credit and Synthetic Corporate Credit 
portfolios. 
 
   DIVIDEND CURRENCY ELECTION - CURRENCY CONVERSION RATE 
 
   Regarding the dividend of EUR0.15 per share payable on 27 September 
2016, the currency conversion rate for those Shareholders who elected to 
receive pounds sterling will be 0.85121 pounds sterling per euro, based 
on the foreign currency exchange rate as at 18:00 (UK time) on 13 
September 2016. Consequently, the applicable pounds sterling dividend 
rate is GBP0.1276815 per share. 
 
   * It should be noted that approximately 10.9% 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 July 2016 for 10.1% of Volta's 
GAV and as at 30 June 2016 for 0.8% 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 
 
   [e-mail] 
 
   [phone] 
 
   Company Secretary and Portfolio Administrator 
 
   Sanne Group (Guernsey) Limited 
 
   [e-mail] 
 
   [phone] 
 
   Corporate Broker 
 
   Cenkos Securities plc 
 
   Alan Ray 
 
   Oliver Packard 
 
   Sapna Shah 
 
   [phone] 
 
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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 EUR694 billion in assets under management as of the end of 
June 2015. AXA IM employs approximately 2,360 people around the world. 
 
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   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. The company 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'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. Volta Finance 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. 
 
   ***** 
 
   August 2016 monthly report: 
http://hugin.info/137695/R/2043743/763051.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

September 22, 2016 02:00 ET (06:00 GMT)

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