Guide

Net Asset Value as at 31 December

Net Asset Value as at 31 December
Written by Publishing Team

Volta Finance Ltd. (VTA / VTAS) tenBer 2021 monthly report

Not for release and distributionAnd or published, in whole or in part, in or within the United States

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Isnsey 12 January 2021

AXA IM has published a monthly report on Volta Finance Limited (the “Company”, “Volta Finance” or “Volta”) for the month of December. The full report is attached to this release and will be available on Volta’s website shortly (www.voltafinance.com).

performance and portfolio activity

Volta performed positive again in December, rising 0.3%, including a dividend of €0.15 per share accounted for in the period. This brings the total return for the entire calendar year to 17.9%. Again this month, Volta’s portfolio performance carried little correlation with the broader markets: loan cash flows remained resilient and no meaningful news emerged to change expectations that defaults would remain low and cash flows strong.

The fundamental performance of the company’s assets, and even the performance of the market brand, was little affected by the new Omicron Covid variant, and for the time being, it did not react to the hawkish tone of US Federal Reserve policy. The market now appreciates that the Fed will act more quickly than it did a few months ago, and we are likely to see more volatility in fixed rate instruments in the coming months.

Volta invests primarily in CLO tranches, the performance of which will not be adversely affected by the projected future course of interest rates as long as these rate increases are not so numerous that they begin to significantly impair companies’ ability to service their debt and refinance on time. a path. When looking at what happened on this front (inflation/monetary policy) in 2021, it worked for Volta’s assets: we had much more inflation than in previous years, and most companies were able to adjust selling prices so that companies could make EBIT and taxes, depreciation, and amortization (EBITDA) and earnings. They have increased significantly (expected to be 10-15% for the whole of 2021) while no interest rate increases have reduced the cost of corporate debt. As a result, the usual measure of default rates in loan markets ended the year at a very low level: 0.3% in the US and 0.6% in Europe (on a last 12-month basis).

For 2022, we expect debt erosion to continue to help companies roll over their debt, and the maturity wall of loan markets to continue to migrate into 2028/2029 so that it is reasonable to expect default rates to remain relatively low in 2022 (and possibly 2023). The result will be that Volta will continue to receive high cash flows from its investments (especially considering that nearly two-thirds of the portfolio are CLOs).

December is generally a relatively low volume month in terms of CLO benefits and coupons with the equivalent of €0.8 million being received. On a rolling basis for 6 months to the end of December, Volta received the equivalent of €23.6 million, representing an annual cash return of 17.7%, based on net asset value at the end of the month.

In December, we took advantage of the modest decline in loan rates to open a new US CLO warehouse. We expect that this warehouse will be transferred to the US CLO Equity Center at the end of the first quarter of 2022. The sooner the CLO manager can purchase loans at a discount, the better for the future CLO equity position.

Turning to detailed asset classes, the monthly performance was**: + 3.5% for bank balance sheet transactions, + 0.4% for CLO equity tranches; + 1.2% for CLO debt; -0.8% for corporate cash credit and ABS (together they represent 3.0% of NAV). Long exposure to the US dollar negatively contributed to the monthly performance by 0.3%.

At the end of December, Volta was fully invested and CLO Debt / Equity / Warehouses represented 90% of the assets. Month by month we are gradually converting the Volta towards being a pure CLO and this process will continue with the remaining non-CLO assets remaining through 2022.

At the end of December 2021, Volta had a net asset value of €265.8 million, or €7.27 per share.

* It should be noted that approximately 7.5Percentage of Volta’s GAV includes investments for which the relevant NAV as at the month-end date is not available until after Volta’s NAV has already been published. It is Volta’s policy to publish its NAV as timely as possible to provide shareholders with appropriately updated NAV value information from Volta. Thus, these investments are valued using the latest available NAV for each fund or the listed price for these subordinated bondss. The last available price for the available fund or the displayed price was 6.9% as in 30 newBer 2021And 0.6% as on September 30, 2021.

** “Offers Asset classes be Calculated as Dietz’s performance of the assets in each group, taking into account the mark-to-market for the assets in period ends, payments received from assets during the period, ignoring changes in intersectionExchange Rates. However, some residual currency effects may affect the total value of the portfolio when each group is compiled.

Contacts

investment manager
Investment Managers AXA Paris
Serge Demay
serge.demay@axa-im.com

+33 (0) 1 44 45 84 47

Company Secretary and Director
BNP Paribas Securities Services SCA, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com
+44 (0) 1481750853

corporate broker
Cenkos Securities plc
Andrew Warren
Daniel Balabanov
+44 (0) 20 7397 8900

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ABOUT VOLTA FINANCE LIMITED

Volta Finance Limited was incorporated in Guernsey under the Companies (Guernsey) Act 2008 (as amended) and is listed on Euronext Amsterdam and the main market of the listed London Stock Exchange. The member country of Volta for the purposes of the European Union Transparency Directive is the Netherlands. As such, Volta is regulated and supervised by the AFM, being the regulator for the financial markets in the Netherlands.

Volta’s investment objectives are to preserve capital across the credit cycle and to provide a steady stream of income to its shareholders through dividends. Volta pursues its investment objectives predominantly through diversified investments in structured finance assets. Assets in which the company may invest directly or indirectly include, but are not limited to: corporate credits; sovereign and quasi-sovereign debt; Residential mortgage loans and auto loans. The Company’s approach is to invest through instruments and arrangements that primarily provide leveraged exposure to portfolios of these underlying assets. The company has appointed AXA Investment Managers Paris, an investment management firm with a division specializing in structured credit, to manage the investment of all of its assets.

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About AXA Investment Managers
AXA Investment Managers (AXA IM) is a multi-professional asset manager within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of Europe’s largest asset managers with 767 investment professionals and €866 billion in assets under management as of the end of June 2021.

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This press release has been published by AXA Investment Managers Paris (“AXA IM”), as an alternative investment fund manager (within the meaning of Directive 2011/61/EU, “AIFM Directive”) to Volta Finance Limited (“Volta Finance”) that manages Her AXA IM portfolio.

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 some jurisdictions and no recipient may distribute copies of this document in violation of such restrictions or limitations. This document is not an offer to sell the securities herein referred to in the United States or to “US Persons” for the purposes of Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such an offer is srestricted by applicable law. These securities may not be sold in the United States without registration or exemption from registration by the Securities Act. Volta Finance It does not intend to register any part of the offer of these securities in the United States or to conduct a public offering of such securities in the United States.

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This communication is to be distributed only and directed only to (i) persons located outside the UK or (ii) investment professionals covered by Section 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Ordinance 2005 (the “Order”) or ( 3) high net worth corporations, and other persons to whom they may lawfully be informed, which fall under Section 49(2)(a) to (d) of the Order (all such persons together are referred to as “the relevant persons”). The securities referred to herein are available only, and any invitation, offer or agreement to subscribe, purchase or otherwise obtain such securities will be dealt with only with the persons concerned. No unrelated person should act or rely on this document or any of its contents. Past performance cannot be relied upon as a guide to future performance.

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This press release contains statements that are or may be considered “forward-looking statements”. These forward-looking statements may be identified through the use of Forward-looking terms, including the terms “believes,” “expects,” “intends,” “expects/expects,” “may,” “will,” or “should.” It includes data on the level of dividends, and the current market Context And its effect on the return of Volta in the long run financeinvestments. By their nature, forward-looking statements involve risks and uncertainties, and readers are cautioned that any forward-looking statements are not guarantees of future performance. Volta Finance’s actual results, portfolio composition and performance could differ materially from the impression given by the forward-looking statements. AXA M It undertakes no obligation to publicly update or revise forward-looking statements.

Any information about the target is based on certain assumptions regarding future events that may not be the case realized. Due to the uncertainty surrounding these future events, objectives are not intended to be and should not be considered earnings, earnings or any other type of forecast. There can be no guarantee that any of these goals will be achieved. In addition, no assurance can be given of the achievement of the investment objective.

The figures provided relating to past months or years and past performance cannot be relied upon or interpreted as a reliable indicator of future performance. Throughout this review, citations of specific deals or strategies are intended to illustrate some of Volta Finance’s investing methodologies and philosophies, as implemented by AXA IM. The historical success or belief of AXA IM in the future success of any such trades or strategies is not indicative and has no bearing on future results.

The valuation of financial assets can differ significantly from the rates that AXA IM would obtain if it sought to liquidate positions on behalf of Volta Finance due to market conditions and the general economic environment. These ratings do not constitute fairness or similar opinion and should not be considered.

Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, whose registered office is located in Tour Majunga6, Place de la pyramid – 92800 Putu. AXA IMP is licensed by Power From markets financiers under registration number GP92008 as an alternate fund manager within the meaning of the AIFM directive.

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  • Monthly Fact Sheet – December 2021

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