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

 
TIDMVTA 
 
 
   Volta Finance Limited (VTA) - June 2018 monthly report 
 
   NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR 
INTO THE UNITED STATES 
 
   ***** 
 
   Guernsey, 23 July 2018 
 
   AXA IM has published the Volta Finance Limited (the "Company" or "Volta 
Finance" or "Volta") monthly report for June. 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 June, Volta's Estimated NAV* performance was +0.2%, a positive 
performance in a context of relatively quiet credit markets in general, 
including the 16 cents per share dividend paid on the 28(th) of June. 
 
   The last 4 quarterly dividends were covered 1.6 times by Volta's income 
and contributed to a 7.5% trailing dividend yield relative to the share 
price. 
 
   In June, mark-to-market performances of Volta's asset classes, in local 
currencies, were: 0.0% for Bank Balance Sheet Transactions; +0.1% for 
CLO Equity tranches; +1.1% for CLO Debt tranches, -2.1% for Cash 
Corporate Credit deals and +0.6% for ABS. 
 
   In June, Volta generated the equivalent of EUR1.7m 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 
EUR18.0m, a level unseen for several years. 
 
   The increasing amount of interest and coupons generated by Volta's 
assets continues, resulting from the increase in the 3 month USD Libor 
rate as well as the increasing importance of the CLO equity bucket (the 
asset class with the highest cash on cash contribution). 
 
   During the month, Volta sold one European CLO equity position, saw one 
CLO debt position called and received the final payment from the 
warehouse facility that closed this month for a total equivalent of 
approximately EUR8.1m. Volta purchased two USD CLO debt positions and 
two recently opened CLO warehouse facilities were partially drawn for a 
total equivalent amount of EUR12.5m. On average and under market 
standard assumptions, the projected IRR of these purchases is in the 
area of 11.5%. 
 
   As planned, we continue to allocate capital to CLO warehousing 
facilities. It is anticipated that the two warehouses to which Volta 
contributed this month should lead to a CLO pricing during Q3 2018. 
Expected returns on such CLO equity positions are in the area of 13% to 
15%. 
 
   On top of the good performance that we realise on our warehouse 
facilities, they generally offer a way to secure attractive terms for 
new CLO equity positions. 
 
   We've seen a bit of widening in CLO BB tranches, and if this was to 
continue we will use this opportunity to deploy more cash in this area. 
 
   As of the end of June 2018, Volta's Estimated NAV was EUR303.9m or 
EUR8.31 per share. The GAV stood at EUR350.6m. 
 
   *It should be noted that approximately 11.2% 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 6.8% as at 31 May 2018 and for 4.4% 
as at 31 March 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. 
 
   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 
 
   Andrew Worne 
 
   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 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 - Monthly Report - June 2018: 
http://hugin.info/137695/R/2206541/857631.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

July 23, 2018 02:00 ET (06:00 GMT)

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