Volta Finance Limited – Net asset value (s) as at October 31

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Volta Finance Limited (VTA / VTAS) – October 2020 Monthly Report

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

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Guernsey, November 10, 2020

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

PERFORMANCE and PORTFOLIO ACTIVITY

In October, including the dividend of € 0.11 per share paid, Volta’s monthly performance was + 1.6%, a relatively good performance for a month that was characterized by the resumption of the COVID crisis in Europe and growing uncertainties ahead of the US election.

The monthly performances of the asset classes ** are in local currency: -1.9% for bank balance sheet transactions, + 2.9% for CLO Equity tranches; -0.4% for the CLO debt; -0.1% for Cash Corporate Credit transactions (this category includes funds that are one month late in publishing their NAV); and -0.1% for ABS.

As we noted earlier, the CLO’s quarterly cash flows are focused primarily on one month. In the third quarter, that is to say in October. This month, interest and coupons received by Volta amounted to the equivalent of € 8.1 million. This amount is significantly higher than the July level of 5.3 M € when the equity payments of the CLOs were negatively affected by technical problems (fall in the American Libor rate and many European companies which chose to pay their debts in the spring. interest on a 6 month basis). It should be noted that this amount was also higher than pre-COVID levels; the equivalent of 7.8 million euros was received in April 2020 before the pandemic affected the CLO waterfalls.

Over 6 rolling months, Volta received the equivalent of € 16.8 million at the end of October, i.e. an annualized return of 15.1%, based on the NAV at the end of October.

At the time of writing, Pfizer, in partnership with BioNTech, announced that it has successfully completed clinical trials for a COVID vaccine. The market reaction was strong, for example, US CCC loans fell from around 68% to 72% on the day of the announcement. US CLO BB tranches are up 3%. While there are still unresolved issues with this pandemic, it is good news for credit. If there is a positive outcome on the vaccine front, with more drug companies sharing similar positive news in the coming weeks, the future of lending and credit in general would look less worrisome.

For Volta’s CLO positions, this is clearly not the end of the story, but this type of information reduces the risk of suffering disruption or misappropriation of payments. The performance from November to date for CLO Equity and Debt has been strong.

In October, the Euro CLO warehouse owned by Volta was transformed into a performing CLO and we also invested in a new USD CLO Equity position (managed by Symphony) for $ 4.4 million. Most of the latter position’s loan pool was increased before and during the US election at some discount.

At the end of October 2020, Volta’s NAV was € 221.9 million, or € 6.07 per share.

Cash available at the end of the month amounted to € 7.8 million.

* It should be noted that approximately 11.9% of Volta’s NAV 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 disclose 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 subordinate note. The last net asset value or quoted price of the fund was 5.8% as of September 30, 2020 and 6.1% as of June 30, 2020.

** The “performances” of the asset classes are calculated as the Dietz performance of the assets in each sub-fund, taking into account the market value of the assets at the end of the period, of the payments received from the assets during the period and ignoring changes in cross exchange rates. 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
Rob naylor
+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. Volta’s home member state 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 753 investment professionals and € 815 billion in assets under management at the end of June 2020.

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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 offering would be restricted 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 these securities in the United States or to make a public offer of these securities in the United States.

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This communication is only distributed to and is intended for (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 legally disclosed, falling under section 49 (2) (a) to (d) of the Order (all these 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. Anyone who is not a Data Subject should not act or trust this document or any of its contents. Past performance cannot be taken 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 by the use of forward-looking terminology, including the terms “believes”, “anticipates”, “expects”, “intends”, “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 return on Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties, and readers are cautioned that such forward-looking statements are not guarantees of future performance. The actual results, the composition of the portfolio and the performance of Volta Finance may differ materially from the impression created by the forward-looking statements. AXA IM does not undertake any obligation to publicly update or revise 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 kind 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.

The figures provided which relate to past months or years and to 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. The historical success or conviction of AXA IM in the future success of any of these transactions or strategies is not indicative of future results and has no impact on them.

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 the registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM directive.

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