Net asset value of Volta Finance Limited as of August 31, 2021

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Volta Finance Limited (VAT / VTAS) August 2021 monthly report

DO NOT DISTRIBUTE, DISTRIBUTION, OR PUBLICATION, IN WHOLE OR IN PART, IN THE UNITED STATES OR TO THE UNITED STATES

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Fordrnsey, 14 September 2021

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

PERFORMANCE and PORTFOLIO ACTIVITY

August’s performance was slightly negative at -0.5% as some profit taking on European and US CLO stocks pushed prices down slightly. The total return of the company since the beginning of the year is 12.8%.

The monthly performance of the asset classes ** was: + 1.5% for bank balance sheet transactions, -1.3% for CLO equity tranches; + 0.6% for the CLO debt; + 0.7% for Cash Corporate Credit and ABS (together representing 3.3% of GAV).

As usual, August is a low volume month in terms of interest and coupons with the equivalent of 0.8 million euros received.

While this does not have instant and direct implications for Volta, we are delighted to announce that our fellow managers at AXA IM US CLO were named Best US CLO Manager of the Year by Credit Flux earlier this week. . The recognition of the quality of their work should have a positive impact on Volta when refinancing / resetting some of the AXA IM CLO Equity positions we held in the Volta portfolio.

Over 6 rolling months, Volta received the equivalent of € 25.9 million at the end of August, i.e. an annualized cash flow return of 19.6%, based on the month-end NAV.

This high level of interest and coupons received gives us confidence that Volta’s strategy to increase the allocation to the CLO share tranches over the past 3 years was a good decision. The Covid-19 crisis has allowed Volta to receive higher cash flows from its securitized assets, through reinvestment in loans at discounted rates or with higher spreads. These higher cash flows are expected to continue over the medium term.

In August, Volta called a EUR BB tranche (for € 3m) and bought a EUR B CLO tranche for € 0.3m (in addition to an existing position). The forecast yield, in euros, of this tranche B is 9.75% under the standard assumptions.

At the end of August, Volta had nearly 10 million euros of cash available for investment. The primary market pipeline for the CLO issuance, both in the US and in Europe, is so high for September (with unprecedented volume since the start of the year) that we expect to see some widening the gap and thus being able to reinvest this amount at more attractive levels.

At the end of August 2021, Volta’s NAV was € 264.7 million, or € 7.24 per share.

Cash at the end of the month amounted to € 12.8 million.

* It should be noted that approximately 8.3The% of Volta’s GAV includes investments for which the corresponding NAVs at the month-end date are normally only available after the publication of Volta’s NAV. It is Volta’s policy to publish its net asset value as quickly as possible in order to provide shareholders with appropriately updated Volta net asset value information. Therefore, these investments are valued using the last available net asset value for each fund or the quoted price for that subordinated security.s. The fund’s net asset value or the most recent quoted price was 7.3% like a 31 Juis lying 2021 and 1.0% like a 30 June 2021.

** “performances asset classes are calculated as the Dietz performance of the assets in each sub-fund, taking into account the Mark-to-Market of the assets at the period ends, payments received from assets during the period, and ignoring changes in to crosschange rate. However, certain residual currency effects could have an impact on the aggregate value of the portfolio when each sub-fund is aggregated.

CONTACTS

For the investment manager
AXA Investment Managers 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) 1481 750 853

Corporate broker
Cenkos Securities plc
Andrew Worn
Daniel Balabanoff
+44 (0) 20 7397 8900

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ABOUT VOLTA FINANCE LIMITED

Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Act 2008 (as amended) and listed on Euronext Amsterdam and on the main market of the London Stock Exchange for listed securities. The home Member State of the Volta for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to the regulation and supervision of the AFM, being the regulator of the financial markets in the Netherlands.

Volta’s investment objectives are to preserve capital throughout the credit cycle and to provide a stable income stream to its shareholders through dividends. Volta seeks to achieve its investment objectives primarily through diversified investments in structured finance assets. Assets in which the Company may invest directly or indirectly include, but are not limited to: business loans; sovereign and quasi-sovereign debt; residential mortgage loans; and, auto loans. The Company’s approach to investing involves vehicles and arrangements that essentially provide leveraged exposure to the portfolios of these underlying assets. The Company has appointed AXA Investment Managers Paris an investment management company with a division specializing in structured credit, for the investment management of all of its assets.

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ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a world leader in financial protection and wealth management. AXA IM is one of the largest European asset managers with 767 investment professionals and 866 billion euros in assets under management at the end of June 2021.

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This press release is published by AXA Investment Managers Paris (“AXA IM”), in its capacity as manager of alternative investment funds (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 informational purposes only and does not constitute an invitation or an incentive to acquire shares of Volta Finance. Its distribution may be prohibited in certain jurisdictions, and no recipient may distribute copies of this material in violation of these limitations or restrictions. This document is not an offer to sell the securities referred to in the United States or to persons who are “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 would be rrestricted by applicable law. These securities cannot be sold in the United States without registration or an exemption from registration under the Securities Act. Volta Finance does not intend to register any part of the offering of such 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 only distributed to and directed to (i) persons outside the UK or (ii) investment professionals falling under Section 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 be lawfully disclosed, falling under section 49 (2) (a) to (d) of the Order (all such persons being as “concerned persons”). The securities referred to in this document are not available and any invitation, offer or agreement to subscribe, purchase or acquire such securities will only be concluded with the persons concerned. Every person who is not a data subject should not act or trust this document or any of its contents. Past performance cannot be taken as an indicator of 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 by the use of forward-looking terminology, including the terms “believes”, “expected”, “expects”, “intention”, “is / are expected”, “could “,” Will “or” should “. They include statements regarding the level of the dividend, the current market environment and its impact on the long-term performance of Volta. Financeinvestments of. By their nature, forward-looking statements involve risks and uncertainties, and readers are cautioned that these forward-looking statements are not guarantees of future performance. The actual results, portfolio composition and performance of Volta Finance may differ materially from the impression created by forward-looking statements. AXA IM assumes no obligation to publicly update or revise any forward-looking statements.

All target information is based on certain assumptions about future events that may not materialize. Due to the uncertainty surrounding these future events, targets are not intended to be and should not be viewed as profits or profits or any other type of forecast. There can be no assurance that any of these objectives will be achieved. Furthermore, no assurance can be given that the investment objective will be achieved.

Figures provided which relate to past months or years and past performance cannot be taken as a guide to future performance or interpreted as a reliable indicator of future performance. Throughout this review, the citation of specific transactions or strategies is intended to illustrate some of Volta Finance’s investment methodologies and philosophies, as implemented by AXA IM. AXA IM’s historical success or belief in the future success of any of these transactions or strategies is not indicative of and has no bearing on future results.

The valuation of financial assets may differ materially from the prices that AXA IM might obtain if it sought to liquidate positions on behalf of Volta Finance due to market conditions and the general economic environment. Such assessments do not constitute fairness or a similar opinion and should not be taken as such.

Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under French law, whose head office is located at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by the Financial Markets Authority under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM directive.

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  • Volta – August Monthly Report


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