Volta Finance Share Discussion Threads

[davebowler] 22/7/2015 08:40

Liberum;
Volta's NAV fell 0.8% in June 2015 to €8.20 per share (May 2015: €8.26) and the YTD NAV total return to the end of June is now +11.0%.

The small NAV movement was due to a widening in credit spreads in the market as a result of the Greek crisis and concerns over emerging markets. Volta's asset classes produced returns averaging around zero for the month and the depreciation of the US Dollar against Euro contributed to the negative monthly performance.

The mark-to-market performance by asset class was CLO equity +0.5%, CLO debt -0.7%, Cash corporate credit -0.3%, synthetic corporate credit -0.5% and ABS -0.3%.

In June, Volta acquired three assets (one bank balance sheet transaction and two CLO debt tranches) for €11.3m. The projected yield for the bank balance sheet transaction is 9% and 7% for the US CLO debt investments. Volta received €22.6m of principal from the closing of the European warehouse that started in November 2014. The company is in the final stage of signing a European CLO warehouse to deploy a significant portion of the current cash balance of €31.8m.

Liberum view
Volta's NAV performance of 11% in H1 2015 is comfortably the highest of the London-listed funds investing in the CLO sector. The share rating (-9.1% discount to NAV) looks particularly anomalous given the company's strong track record, the favourable credit environment the the relatively strong share rating that the majority of specialist credit funds currently enjoy. For example, the average premium to NAV for Volta's London-listed peers is 0.8% and we expect Volta to rerate towards NAV in the near term.

[davebowler] 06/7/2015 15:41

Having sold out a lot of my RECI -a hard act to follow -because of its premium to NAV I have gone for VTA and JPSL as a vaguely similar mix to replicate what I have sold.

[davebowler] 22/6/2015 08:52

Liberum;
Volta Finance (BUY, TP €7.65)
Strong performance continues in May

Event
Volta's NAV rose 1.6% in May 2015 to €8.26 per share (April 2015: €8.13) and the YTD NAV total return to the end of May is now +11.7%.

All of Volta's assets generated positive performance in the month. The mark-to-market performance by asset class was CLO equity +1.0%, CLO debt +1.0%, Cash corporate credit +0.2%, synthetic corporate credit +0.7% and ABS +0.9%. NAV performance also benefited from FX gains in the month (we calculate almost half of the NAV uplift is due to US dollar appreciation).

Liberum view
Volta's YTD NAV uplift of +11.7% is the highest of the listed funds investing in the CLO sector. Part of this uplift is attributable to FX gains (we estimate a NAV uplift of 7.7% after stripping out currency movements). The company's ABS investments have also contributed to outperformance with an estimated mark-to-market uplift of 32% in the five months to May 2015.



Volta trades on the lowest rating in the sector (11.9% discount to NAV compared to an average 1.1% premium for peers). We believe this discount emanates from the Euronext listing and we expect the shares to re-rate now that the London listing has completed.

[ben12358] 17/6/2015 18:34

To be clear, Ranger direct more risky + price ahead of nav,so not as good value as Volta, but projected divs are much higher, in the future, so dyor and take the risk you want to...only suggested because Ranger is denomonated in GBP. ...

[ben12358] 17/6/2015 18:18

HL wont do it because denominated in Euro rather than GBP. Try TD Waterhouse or switch to Ranger Direct ?

[danieldruff2] 17/6/2015 13:49

Has anyone been able to buy this using an execution only broker? Hargreaves and Halifax won't allow it, whereas Selftrade didn't recognise the ticker for a while... now does... but you can't buy online without going to negotiated.

[tiltonboy] 02/6/2015 21:54

Topped up with a few more today.

[badtime] 02/6/2015 19:58

Well....spread has narrowed as i thought it might ..but after my nibble :(

[davebowler] 02/6/2015 12:34

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 12:19

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

[wirralowl] 02/6/2015 11:08

Anyone know what the yield is here? TIA

[badtime] 02/6/2015 10:14

Taken a nibble

[davebowler] 02/6/2015 08:55

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 06:46

NAV up to 8.13.RNS

[badtime] 29/5/2015 20:20

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 13:20

Agreed ,its wider than the Amsterdam price spread too.

[badtime] 29/5/2015 09:20

don't like that spread

[davebowler] 28/5/2015 10:48

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

[badtime] 27/5/2015 08:45

Thanks to both

[badtime] 27/5/2015 08:34

Link to it?