Volta Finance Ld Volta Finance Limited : Net Asset Value(s)

 
TIDMVTA 
 
 
   Volta Finance Limited (VTA) - October 2016 monthly report 
 
   NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR 
INTO THE UNITED STATES 
 
   ***** 
 
   Guernsey, 21 November 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 October, Volta's Estimated NAV(1) performance was 2.0%, in line with 
modest positive performance in most credit markets. 
 
   As at the end of October, the YTD NAV performance was 10.9%, adjusting 
for the April and September dividend payments. After 12.4% in 2014 and 
10.0% in 2015, 2016 is so far another good year for Volta and its 
shareholders. 
 
   In October, Volta purchased two CLO Equity positions in the secondary 
market (one USD and one Euro tranche) for a total of the equivalent of 
EUR4.3m and sold two positions (one ABS Debt asset and one emerging 
market credit CDO) for a total of the equivalent of EUR6.1m. On average 
and based on standard market assumptions, the purchases were executed 
with an average expected yield close to 10.5% and the sales were traded 
with an average expected yield of close to 5%. 
 
   At the end of October 2016, Volta's Estimated NAV(1) was EUR300.1m or 
EUR8.21 per share. The GAV stood at EUR342.3m. 
 
   In October, mark-to-market variations(2) of Volta's asset classes were: 
-0.4% for Synthetic Corporate Credit deals; +3.0% for CLO Equity 
tranches; +0.4% for CLO Debt tranches, +1.9% for Cash Corporate Credit 
deals; and, -0.1% for ABS. 
 
   In October, Volta generated the equivalent(3) of EUR6.0m in interest and 
coupons net of repo costs, bringing the total cash amount generated 
during the last six months in terms of interest and coupons during the 
last six months to EUR15.8m. 
 
   Cash holdings or cash equivalent instruments at the end of October 
totaled EUR10.6m and the Company can be considered as almost fully 
invested. Considering the significant rally that occurred on CLO Debt 
tranches during the summer, AXA IM expects to continue selling some of 
its old positions and buying more recently issued deals in order to 
increase the projected yield of the portfolio. 
 
   Since the end of October, the US Dollar appreciated somewhat against the 
Euro which was beneficial to Volta as the US Dollar exposure was in the 
area of 30%. US mid and long term rates have increased toward levels 
unseen for some time and Volta added some duration in mid-November 
through the US 5YR Note Future. AXA IM believes that fixed rate exposure 
(at a reasonable level) can provide a good hedge against further 
potential economic disappointments. 
 
   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. 
 
   Volta announced its next quarterly dividend payment: EUR16 cents per 
share to be paid on 22 December 2016, bringing the total dividend 
payments for 2016 to EUR62 cents per share (a yield of 8.7% based on the 
end of October 2016 share price. 
 
   (1) 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: 30 September 2016 for 7.5% of 
Volta's GAV and as at 31 August 2016 for 3.4% of Volta's GAV. 
 
   (2) "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. 
 
   (3) Non-euro amounts translated into euro using end-of-month cross 
currency rates. 
 
   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] 
 
   ***** 
 
   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 EUR679 billion in assets under management as of the end of 
June 2016. AXA IM employs approximately 2,399 people around the world. 
 
   ***** 
 
   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. 
 
   ***** 
 
   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. 
 
   ***** 
 
   Volta Finance Limited - October 2016 monthly report: 
http://hugin.info/137695/R/2058095/771258.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

November 21, 2016 02:00 ET (07:00 GMT)

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