Volta Finance Share Discussion Threads

[davebowler] 16/8/2018 13:09

8 August 2018

According to our early computations, the end of July Early Estimated
NAV(*) of Volta is at EUR8.35 per share. Volta's Early Estimated NAV(*)
performance is +0.5% for July 2018.

[davebowler] 22/6/2018 10:20

Liberum;
CLO Funds

Mixed performance in May

Event

Carador Income Fund and Blackstone GSO Loan Financing have reported NAV performance for May 2018. Carador suffered a NAV decline of -0.4% (6.8% NAV return over 12 months) and Blackstone GSO Loan Financing generated a return of 0.1% (-0.3% NAV TR over 12 months).

Blackstone GSO Loan Financing's income return of 1.3% was largely offset by mark-to-market losses of -1.2%. The biggest impact on performance was mark-to-market losses on the European CLOs (-0.8% NAV reduction) which we believe is a result of further spread compression.

NAV TR of CLO funds (assumes dividends not reinvested)



May-18 month return


Fair Oaks Income Fund

May-18 0.3%



Carador Income Fund

May-18 -0.4%



Volta Finance

May-18 2.4%



Blackstone/GSO Loan Financing

May-18 0.1%



Marble Point Loan Financing

May-18 0.7%




Source: Liberum estimates

Liberum view

Performance across the sector has slowed over the past 12 months as loan spread compression has impacted returns. Four of the funds have been listed since July 2014. A clear split has emerged in NAV returns, with Volta Finance and Fair Oaks materially outperforming Carador Income Fund and Blackstone GSO Loan Financing over the period.

As previously announced, the board of Carador has commenced a strategic review of the company to consider future prospects and opportunities. A large proportion of the share register (27%) opted for the repurchase pool in Q4 2017 and the ordinary shares have continued to trade at a wide discount (-7.5%) in comparison to peers (-2.9% average). The fund's performance has improved in recent years but the longer term performance has been below expectations (5.9% annualised NAV return over 5 years).

[skyship] 21/6/2018 11:01

Whatever chart variant you look at - downtrend busted:


free stock charts from uk.advfn.com

[skyship] 21/6/2018 10:57

Looks as though London now closing the gap...moved up to 7.00 bid.

[spittingbarrel] 21/6/2018 09:52

Quite a backwardation between London and Amsterdam, 6.94 offered in London and 7.12 bid in Amsterdam. Shame my broker won't let me deal in London.

[davebowler] 20/6/2018 09:36

Liberum;
Event

Volta Finance and Marble Point Loan Financing have both reported positive NAV updates for May 2018:

Volta's NAV per share rose by 2.4% to €8.45 at 31 May 2018 (April 2018: €8.25). US Dollar strength added 1.2% to NAV performance in the month. Portfolio gains were driven by CLO debt investments (+1.3%) and bank balance sheet transactions (+1.9%). The company has provided additional disclosure on its exposure to Italian investments (Italian companies account for less than 2.5% of the company's European CLO investments). The discount to NAV has steadily widened over the past year and now stands at -17.2%. The average discount for the CLO fund peer group is -3.1%.

Marble Point Loan Financing generated a 0.7% NAV gain in the month to $0.984 per share. The company believes it is on track to achieve the targeted 10% dividend in year two. The manager reports a healthy environment for CLO issuance with $54 billion of new CLOs issued to date in 2018. We note reports of a slight widening in AAA CLO spreads due to the high level of new issues coming to market. The stock trades on a 4.7% premium to NAV.

[cerrito] 20/6/2018 08:57

Like Holts, I have no desire at all for a VTA wind up especially if we may lose CIFU and welcome fact that VTA has a slightly different slant than CIFU/FAIR

[cwa1] 20/6/2018 07:43

PERFORMANCE and PORTFOLIO ACTIVITY

In May, Volta's Estimated NAV* performance was +2.4%, a very good
monthly performance in a context of relatively quiet credit markets in
general. This month the dollar exposure of Volta contributed positively
to half of the performance (1.2% impact).

On 28(th) of June Volta will pay a quarterly dividend corresponding to
EUR0.16 per share (ex-dividend date was the 7(th) of June).

[holts] 18/6/2018 13:37

Only bought in just before xd date , not sure I want a wind up with such a reasonable yield , but you have to wonder why it is so large .

[horndean eagle] 18/6/2018 12:47

If you have been in VTA as long as me you will know it come to London to try and narrow the discount. I met with management as part of the roadshow a few years ago and that was their stated aim. More liquidity and narrowing of discount. They have failed on both counts. At some point holders are right to ask whether we might all be better served with a discount control management policy or a wind up. Others in the sector trade around par like FAIR. Its possible to do it. If they need a clean slate then wind this one up and start one with investors who actually want to be there.

[spittingbarrel] 18/6/2018 12:34

I topped up this morning at 6.88

[yieldsearch] 18/6/2018 12:25

VTA has always traded at a discount so whoever bought in the past has not lost value based on change of discount (unlike CIFU) ? on my side i am happy to buy high yielding at a discount, particularly companies involved in highly leveraged position like vta and cifu, discount is providing additional protection in a downturn

[horndean eagle] 18/6/2018 11:37

CIFU look like they have bitten the dust and pressured into a wind up. VTA trading on an even bigger discount than them. I don't think its too long before shareholders start getting restless here. They have had long enough to sort out the discount and it simply hasn't worked. Unfair shareholders are lumbered with it. They alluded to discount and shareholders asking for tenders or buybacks in interims. Might come a little more to the fore now.

[rcturner2] 18/6/2018 10:23

Income investors may be interested in IPE.

This is a bond fund which has dropped from a premium to par recently since the manager resigned. I believe this provides a good opportunity to buy into IPE.

[puffintickler] 13/6/2018 09:14

I've indulged in a bit of discount fishing here to up my stake by 50%.

Not been a great investment so far but the divis have made up for the capital loss so about break-even v money in the bank.

Hope to profit from a halving of the discount over the next year or so.

[davebowler] 12/6/2018 09:43

Liberum;
2.4% NAV increase in May

Event

Volta has released an early NAV estimate for May. NAV per share rose by 2.4% to €8.45 per share at 31 May 2018 (April 2018: €8.25). We estimate US Dollar appreciation added c.1% to NAV performance in the month.

The company's discount to NAV has steadily widened over the past year and now stands at -18.7%. The average discount for the CLO fund peer group is -1.0%.

[rcturner2] 12/6/2018 08:11

Thanks Skyship, pure luck really if does turn out to be a good entry.

[skyship] 12/6/2018 07:32

RCT - congratulations for what looks to have been an excellently timed re-entry...

[rcturner2] 12/6/2018 07:18

So pretty much a 20% discount on the new NAV.

[cwa1] 12/6/2018 07:06

12 June 2018

According to our early computations, the end of May Early Estimated
NAV(*) of Volta is at EUR8.45 per share. Volta's Early Estimated NAV(*)
performance is +2.4% for May 2018.

[rcturner2] 11/6/2018 14:27

I have bought back in today.

[holts] 08/6/2018 10:56

I thought perhaps with the current yield they would not be marked down so heavily xd , you know what thought did ?