Volta Finance Share Discussion Threads

[jaws6] 27/5/2015 06:49

RNS out today

[badtime] 22/5/2015 20:31

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 09:12

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 14:37

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

[jaws6] 07/5/2015 11:58

dave
Thanks for info.
good one

[davebowler] 07/5/2015 11:56

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 06:55

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.

[joan of arc] 21/4/2015 10:56

Good on you DaveB for keeping us posted. Hopefully once they list we will see more interest.

[davebowler] 01/4/2015 08:42

Liberum;
Event
As previously announced, changes must be made to VTA's investment policy in order to comply with the eligibility criteria for listing on the official list of the UKLA. The proposed changes will remove the board's discretion on investment limits in different asset classes and individual assets. VTA has called an EGM for 6 May 2015 to vote on the proposals. Assuming the vote is passed, the admission of the shares to the Main Market is expected to take place in late May 2015.

[davebowler] 26/3/2015 09:41

Liberum;

Volta Finance (BUY, TP €7.65)
YTD NAV rise of 5%

Event
Volta's GAV at Feb-15 was €8.05 per share reflecting an increase of 1.3% in the month (Jan-15: €7.95 restated - previously estimated at €7.92). NAV total return in 2015 to date is +5.0%.

The positive performance was driven by stronger credit markets and further appreciation of the USD against Euro (USD exposure was 43.5% at the end of Jan-15). The portfolio performance breakdown per asset class was CLO equity +4.0%, CLO debt +1.9%, Cash corporate credit -0.3%, synthetic corporate credit +1.4% and ABS +0.3%.

No assets were sold in the month and Volta invested €4.7m in two CLO tranches (B and equity tranche of a new USD CLO). The combined return on these investments is expected to be c10% pa.

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. In future, Volta will produce monthly NAV estimates as the fund is now using leverage.

Liberum view
Volta's impressive GAV performance continues with an uplift of 5.0% in 2015 to date. We estimate the FX gains added 0.35% of the 1.3% increase in the month. The new repo facility will be used to leverage the most stable assets in the portfolio which should help to increase the net return to shareholders.
The expected listing on the London Stock Exchange has been reiterated for May 2015 and we expect the share rating to improve as the date approaches. Volta trades on an average 11% discount to NAV compared to an average 3% premium for peers. Our €7.65 TP implies 15% total shareholder return with upside from NAV performance in excess of our estimates.

[davebowler] 17/3/2015 08:34

Event
VTA has entered a new repurchase agreement with Societe Generale for a total of $30m. The facility will be collateralised against some of the USD CLO assets in the portfolio. VTA intends to use the proceeds to purchase debt tranches of CLOs and intends to increase the amount available in future by another $30m depending on market conditions.

Liberum view;
The investment manager has been examining a way to leverage the most stable assets in the portfolio (CLO debt tranches) over the past year. The term of the facility has not been disclosed but recent indications from the manager suggested it would a mid to long term repo. In terms of size, the new facility is still relatively small in the context of the overall balance sheet at c10% of NAV.

VTA trades on a 9.8% discount to NAV which compares to an average 3.9% premium for peers. Volta's discount to peers has narrowed in 2015 as it has delivered the best YTD shareholder total return (VTA +15.2% vs. +2.6% 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.

[soi] 24/2/2015 12:41

Thanks Dave, yes seems so

I`ll buy some in the near future.

[davebowler] 24/2/2015 11:00

Soi
I think its half yearly.

[davebowler] 24/2/2015 10:59

Liberum;
Volta has made a strong start in 2015, with GAV up 3.3% to €7.92, from €7.67 at the end of Dec-14. There was a significant increase in cashflows during the month, with €5.7m of cash generation, compared to less than €2.5m on average over the preceeding five months. This rise (excluding principle repayment) was due to:

A one-off interest payment in January from the CLO warehouse facility that VTA provided financing for.
Most recent purchases in H1 2014 have now started paying cashflows.
CLO 1.0 equity tranches continue to generate strong cashflows, especially in the US market where prepayment rates have slowed over the past quarter.
the mark-to-market valuations of VTA's portfolio were; -0.9% for Synthetic Corporate Credit deals, -0.4% for CLO Equity tranches; 0.8% for CLO Debt tranches, 1.6% for Cash Corporate Credit deals and 0.2% for ABS.

€6.5m of new capital was committed during the period to two tranches of a US CLO - the single B and equity tranche, with total expected performance of c.10%. At the end of the month, €14.1m was held in cash, but €6m is pledged as margin under VTA's hedging facilities, and a further €6.5m was invested in the month, but not yet settled. As such, VTA is effectively fully invested.

Liberum view
A 3.3% return in the month is a strong start for the year, aided by a material increase in net cash inflows. VTA's ability and nimbleness to undertake transactions such as the recent warehouse facility enables it to enjoy one-off receipts like the opportunities described above. We expect VTA to particiate in a select number of similar transactions in 2015 and the company remains our top pick in the CLO space.

The expected listed on the London Stock Exchange has been reiterated as May 2015 and we expect further discount narrowing in advance of this date. The company has enjoyed a 10% rerating month to date, but VTA still trades on a 13% discount to the Jan-15 GAV, compared to an average 3% premium for peers). Our €7.65 TP implies 18% total shareholder return over the next 12 months, with VTA well on track to beat our FY2015E NAV estimate of €7.91 per share. Strong BUY.

[davebowler] 24/2/2015 10:33

Investec;
¢ Returns: NAV was €289.1 m or €7.92ps, an increase of €0.25ps or 3.3% since the end of December 2014.

¢ Underlying: The January movements were: -0.9% for Synthetic Corporate Credit deals, -0.4% for CLO Equity tranches; +0.8% for CLO Debt tranches, +1.6% for Cash Corporate Credit deals and +0.2% for ABS.

¢ Background: The positive performance of Volta in January is in line with stable credit markets and with the significant appreciation of the USD against Euro. At 31st January 2015 Volta had 43.5% net exposure to the US Dollar, accounting for the impact of currency hedging.

¢ Cash Generation: Volta's assets generated the equivalent of €5.7m cash flows in January 2015 (non-Euro amounts converted to Euro using end-of-month cross currency rates and excluding principal payments from debt assets) bringing the total cash generated during the last six months to €18.1m.

Investec Insight

¢ As we have previously highlighted, and indeed the company goes as far as to so say this in the report, VTA looks attractive at current levels of discount compared to its London listed peers.

¢ Returns have been excellent over the full cycle and AXA, the Paris based manager, has managed to deliver annualised returns of c.11%% over the most volatile period in the history of the asset class.

¢ The fund has been hampered by the poor liquidity on the Euronext and we believe the planned London listing should help with both the profile of the fund and liquidity of its shares going forward. As recently announced, the Company's listing on the London Stock Exchange is anticipated to occur in May 2015

[soi] 24/2/2015 06:11

Hi Dave
yep thanks for starting the thread.I have only just started looking at VTA.

Sorry to ask such a basic question and I am in the process of reading through the information on the company`s web site but if you happen to know, how often do they pay a dividend ? is it every 6 months?

Thank You

soi

[davebowler] 17/2/2015 09:47

Liberum; FAIR raises funds at a premium to NAV
CLOs

Fair Oaks Income Fund (NR)
$40m equity issue

Event
FAIR yesterday announced it had raised $39.7m (before costs) through the issue of 40m new ordinary shares. The company had previously announced that it had received a new investor commitment for at least $21m.

The shares are being issued under the company's existing placing programme and admission is scheduled for 19 February.

Liberum view
The equity issue is a good result for Fair Oaks and will raise the market cap to $165m. The $40m of new proceeds which includes one large investor commitment is a vote of confidence for the company. FAIR's premium to NAV has reduced from 9.4% at the announcement of the intention to raise equity to 5.8% today and the placing programme is likely to put a cap on the premium until it expires in

[davebowler] 16/2/2015 13:43

www.google.co.uk/finance?q=vta.as&ei=C_PhVODRBJHDwAOluYAo

[jaws6] 28/1/2015 09:30

Dave
thanks for starting this thread.
will wait for more info on this.

[davebowler] 26/1/2015 16:38

Euronext quote

[energyi] 26/3/2010 13:41

BVG.v / Bravo Venture.. 145. x $.295 = $42.78mn / 186. = $54.87 mn / $0.50-flo 10/09
DUN.v / Duncastle Gold. 35.9 x $0.07 = $ 2.52mn / 50.1 = $ 3.51 mn / $0.06 03/10
FRX.v / Fortune River R 32.1 x $0.07 = $ 2.25mn / 38.4 = $ 2.69 mn / $0.08 01/10
QTA.v / Quaterra Res... 115. x $1.55 = $ 178.mn / 147. = $ 228. mn / $0.60 10/09
SSV.v / Southern Silver 64.9 x $0.15 = $ 9.74mn / 90.3 = $13.55 mn / $0.10 12/09
VTA.cq/ Valterra Res... 37.7 x $0.02 = $ 0.75mn / 51.8 = $ 1.04 mn / $0.08-flo 12/09