Volta Finance Share Discussion Threads

[davebowler] 02/6/2015 13:34

Peer group valuation Feb 15 by Liberum
Fund Ticker Mkt Cap (£m) Price NAV (Ex-div) NAV date Prem /(Disc) Dividend Yield
Volta Finance VTA NA £171.0m €6.36 €7.67 Dec-14 -------------(17.1%)------9.4%
Carador Income Fund CIFU LN £316.9m $0.883 $0.874 Dec14- 0.9%- --11.3%
Fair Oaks Income Fund FAIR LN £85.5m $1.063 $0.978 Dec14 -8.7%-- -7.9%
Blackstone GSO Loan Fin BGLF LN £220.7m €0.976 €0.966 Dec14- 1.0% 8.2%

[davebowler] 02/6/2015 13:19

Last Divi was .31 euros so on that basis c.8%

[wirralowl] 02/6/2015 12:08

Anyone know what the yield is here? TIA

[badtime] 02/6/2015 11:14

Taken a nibble

[davebowler] 02/6/2015 09:55

Westhouse;
Volta Finance (BUY)
Value outlier

CLOs

Volta Finance (BUY)
Value outlier

Event
Volta's IMS for the quarter to April 2015 highlights another period of strong performance with a NAV total return of 6.3%. NAV total return for 2015 to date is 10.2%.

The performance in the period reflects strong credit markets as well as the gain from selling two non-conforming residual positions.

In terms of portfolio activity, VTA acquired five assets for €16.7m, €11.7m was drawn on previous commitments and €3.5m was added to the warehouse position. Two assets were sold generating €12.2m and two CLO equity tranches were called generating €1.9m.

Volta agreed a new repurchase agreement with Societe Generale at the end of March. The facility size is $30m and the proceeds will mainly be used to purchase USD CLO debt tranches.

Liberum view
In our view, Volta's continued performance demonstrates that the discount to peers is unjustified. We believe the c10 percentage point differential (8% discount for Volta vs. 2% premium for peers) has been due to the company's Euronext listing. We expect the shares will continue to re-rate now that the company has a dual London listing.

The portfolio is weighted towards CLOs but the uplift from the non-conforming residual positions illustrates the advantage of the flexibility in the manager's mandate to allocate capital to asset classes which offer the best relative value. The non-confirming residual assets form the majority of the ABS positions in the portfolio which have been the best performing assets in the portfolio since 2013.



The non-conforming residual positions are from UK mortgage ABS transactions. During 2009 and 2010, the residual positions stopped paying cash flows due to the build-up of arrears on the underlying loans. Since then, the investments have been highly cash-generative with payments received in the six months to January 2015 representing just over 20% of the July 2014 valuation.

[jaws6] 02/6/2015 07:46

NAV up to 8.13.RNS

[badtime] 29/5/2015 21:20

Spread narrowed a bit...one would expect turnover to pick up considering the new listing and then hopefully it will narrow further.
I think i am going to have a nibble.

[davebowler] 29/5/2015 14:20

Agreed ,its wider than the Amsterdam price spread too.

[badtime] 29/5/2015 10:20

don't like that spread

[davebowler] 28/5/2015 11:48

It goes live on the UK market tomorrow with the EPIC of VTA.L

[badtime] 27/5/2015 09:45

Thanks to both

[badtime] 27/5/2015 09:34

Link to it?

[jaws6] 27/5/2015 07:49

RNS out today

[badtime] 22/5/2015 21:31

So DB this time week (hopefully) we can buy through the LSE...excuse my ignorance...same epic code and in sterling?

[davebowler] 18/5/2015 10:12

Liberum;


Volta Finance (BUY, TP €7.65)
ABS gains drive NAV uplift

Event
Volta's NAV at 30 April 2015 was €8.13 per share which represents a NAV total return of 1.7% in the month after adjusting for dividends paid.

NAV performance was driven by stronger credit markets as well as the gain from selling two non-conforming residual positions. The portfolio performance breakdown per asset class was CLO equity +2.8%, CLO debt +1.7%, Cash corporate credit -0.1%, synthetic corporate credit +0.5% and ABS +27.2%. The assumptions used to value the remaining UK non-conforming residual positions have been amended to reflect the valuation uplift achieved on realisation. These assets account for 4.8% of GAV and are the only assets in the portfolio that are valued on a mark to model basis.

Three assets were acquired in the month for a total of €12.0m. The acquisitions included the B and the BB tranche of a recently issued USD CLO and the equity tranche of a European CLO. The sale of the non-conforming residual positions generated €12.2m and two USD CLO equity tranches were called which produced a further €1.9m.

The new investment policy was approved by shareholders at an EGM on 6th May 2015 and Volta is able to proceed with the Main Market listing. Admission is expected on 29 May 2015.

Liberum view
Volta'a NAV performance in the month was achieved despite FX headwinds (USD depreciated by 4.4% against the Euro in the month) and we calculate the NAV return in local currency was c3.5% in the month. NAV total return for the first four months of 2015 is +10%.

The non-conforming residual positions are from UK mortgage ABS transactions. During 2009 and 2010, the residual positions stopped paying cash flows due to the build-up of arrears on the underlying loans. Since then, the investments have been highly cash-generative with payments received in the six months to January 2015 representing just over 20% of the July 2014 valuation.

Volta trades on a 14% discount to NAV compared to an average 3% premium for peers. This discount to peers is unwarranted in our view given Volta's impressive track record and we expect the listing on the Main Market of the LSE (due to occur on 29 May 2015) to act as a catalyst for a share re-rating.

[davebowler] 11/5/2015 15:37

Move to the U.K. LSE Market 29 May;

[jaws6] 07/5/2015 12:58

dave
Thanks for info.
good one

[davebowler] 07/5/2015 12:56

Liberum;
Volta Finance (BUY, TP €7.65)
Investment policy changes approved

Event
At yesterday's EGM, the resolution to amend the company's investment policy was passed by shareholders. Changes to the investment policy were required in order to comply with the eligibility criteria for listing on the official list of the UKLA. The approved changes remove the board's discretion on investment limits in different asset classes and individual assets.

Liberum view
The listing of VTA's shares is now expected to take place before the end of the month. We believe this will act as a catalyst for an improvement in the share rating given the discount VTA trades at in comparison to London listed peers. VTA's 11.1% discount to NAV is 14 percentage points wider than the peer group average (3% premium).

[davebowler] 27/4/2015 07:55

Liberum;
Volta Finance (BUY, TP €7.65)
3% NAV rise in March

Event
VTA's NAV rose 3% in Mar-15 to €8.30 per share (Feb-15: €8.05). The NAV increase over Q1 2015 is +8.2%.

The positive performance was driven by stronger credit markets and further appreciation of the USD against Euro (USD exposure was 44.3% at the end of Mar-15). The portfolio performance breakdown per asset class was CLO equity +1.8%, CLO debt +1.0%, Cash corporate credit -1.8%, synthetic corporate credit -1.2% and ABS +2.4%.

As previously announced, Volta has entered into a repurchase agreement with Societe Generale. The facility size is $30m and the proceeds will mainly be used to purchase CLO debt tranches. $6m has been out to work in early April into two debt tranches of a USD CLO.

Liberum view
Volta's impressive GAV performance continues with an uplift of 8.2% in 2015 to date. We estimate the FX gains added 1.9% of the 3.0% increase in the month. The new repo facility will be used to leverage the most stable assets in the portfolio which should help to maintain the high level of returns to shareholders.

VTA trades on a 14.8% discount to NAV which compares to an average 3.5% premium for peers. Volta's discount to peers has narrowed in 2015 as it has delivered the best YTD shareholder total return (VTA +14.6% vs. +3.3% peer group average). We believe this is a reflection of the ongoing strong performance of the portfolio and the intended move to a Main Market listing in May. We believe the shares rating will continue to improve and we reiterate our BUY recommendation.