Volta Finance Limited – Net Asset Value as at 31 December 2022

Volta Finance Limited – Net Asset Value as at 31 December 2022

Volta Finance Restricted (VTA / VTAS) December 2022 per month document


Guernsey, 12 January 2023

AXA IM has revealed the Volta Finance Restricted (the “Corporate” or “Volta Finance” or “Volta”) per month document for December 2022. The entire document is hooked up to this liberate and might be to be had on Volta’s site in a while (www.voltafinance.com).


After an excessively sturdy functionality in November (+6.3%), December was once fairly down with -1%, together with the January dividend fee for which the document date was once set in December.

Despite the fact that CLO debt carried out somewhat smartly, Volta suffered from the underperformance of the USD towards the Euro in addition to fairly damaging performances in December on Volta non-CLO exposures.

Volta’s underlying sub asset categories per month performances** have been as observe: -0.3% for Financial institution Stability Sheet transactions, +0.5% for CLO Fairness tranches, +1.3% for CLO Debt tranches; and -3.6% for Money Company Credit score and ABS (which constitute circa 2.3% of the fund’s NAV).

December normally is a somewhat quiet month when it comes to CLO Fairness distributions. Over the month, Volta gained the similar of €0.3m of pursuits and coupons. Over the standard 6-month-basis time period Volta gained €22.5m of pursuits and coupons, ie. a 21.1% annualized money drift to NAV.

We bought two Ecu CLO Fairness positions from the secondary marketplace in December for a complete nominal quantity of €2.5m, at a mean acquire value of 59.75%. The projected yield of stated purchases is – underneath cheap assumptions relating to long run underlying losses – within the 22% context.

Basics-wise, December noticed considerably extra downgrades than upgrades particularly in the United States Mortgage marketplace. Despite the fact that we’re nonetheless looking forward to December trustee reviews, expectancies are that CCC/Caa1 mortgage buckets greater on moderate via 1.5 to two% in the United States throughout the process the month.

In the case of default charges, we’ve the entire record of defaults for 2022. Default charges have been nonetheless very low, at 0.4% for Ecu Loans and zero.7% for US loans. After the invasion of Ukraine, score companies have been forecasting 2022 default charges to achieve between 2% and a couple of.5% for the United States and Ecu mortgage markets… We closed the yr a ways from the ones ranges.

As we ceaselessly spotlight on this document, the primary explanation why for such low default charges is the advantage of inflation, regardless of the commercial slowdown. When firms’ revenues are rising rapid, despite the fact that stated firms be afflicted by margins drive, earnings and EBITDA nonetheless set up to develop (at a decrease tempo than revenues however they nonetheless do develop on moderate).

When taking into account score companies and maximum banks’ analysis, default charges are anticipated to achieve 3.5% to five.5% for 2023. Our default charges view for 2023 nonetheless lands within the 3% house for each US and Ecu Loans as we nonetheless imagine that debt erosion (because of inflation) and demanding building up in revenues will lend a hand warding off some defaults ; even though margins are already underneath drive and that they will have to stay underneath drive for a couple of extra quarters. Because the overwhelming majority of loans are covenant lite, the deterioration of pastime protection ratios – whilst being a supply of rigidity – don’t robotically result in a default. It’s the degree of EBITDA and the place charges might be when firms wish to refinance their debt that may in reality subject. We don’t see many firms that experience to refinance in 2023.

Such roughly default development will have to no longer materially have an effect on the distribution of pursuits of Volta’s belongings within the close to time period. We imagine that we will take care of a top degree of coupons within the coming quarters and are actively searching to take hold of funding alternatives with the additional money this is being generated.

As on the finish of December 2022, Volta’s NAV was once €213.5m or €5.84 according to percentage.

*It will have to be famous that roughly 6.6% of Volta’s GAV accommodates investments for which the related NAVs as on the month-end date are generally to be had most effective after Volta’s NAV has already been revealed. Volta’s coverage is to post its NAV on as well timed a foundation as conceivable to supply shareholders with Volta’s accurately up-to-date NAV knowledge. As a result, such investments are valued the usage of probably the most lately to be had NAV for every fund or quoted value for such subordinated be awares. Essentially the most lately to be had fund NAV or quoted value was once 1.3% as at 30 November 2022, 4.7% was once at 30 October 2022, 0.6% was once at 30 September 2022.

** “performances of asset categories are calculated because the Dietz-performance of the belongings in every bucket, making an allowance for the Mark-to-Marketplace of the belongings at duration ends, bills gained from the belongings over the duration, and ignoring adjustments in goforex charges. Nonetheless, some residual forex results may have an effect on the combination worth of the portfolio when aggregating every bucket.


For the Funding Supervisor
AXA Funding Managers ParisSerge Demay[email protected]
+33 (0) 1 44 45 84 47

Corporate Secretary and Administrator
BNP Paribas S.A, Guernsey Department
[email protected] 
+44 (0) 1481 750 853

Company Dealer
Cenkos Securities %Andrew WorneDaniel Balabanoff+44 (0) 20 7397 8900


Volta Finance Restricted is integrated in Guernsey underneath The Firms (Guernsey) Regulation, 2008 (as amended) and indexed on Euronext Amsterdam and the London Inventory Alternate’s Primary Marketplace for indexed securities. Volta’s house member state for the needs of the EU Transparency Directive is the Netherlands. As such, Volta is matter to legislation and supervision via the AFM, being the regulator for monetary markets in the Netherlands.

Volta’s funding goals are to maintain capital around the credit score cycle and to supply a strong movement of source of revenue to its shareholders thru dividends. Volta seeks to score its funding goals predominantly thru assorted investments in structured finance belongings. The belongings that the Corporate would possibly spend money on both immediately or not directly come with, however don’t seem to be restricted to: company credit; sovereign and quasi-sovereign debt; residential loan loans; and, car loans. The Corporate’s option to funding is thru automobiles and preparations that necessarily supply leveraged publicity to portfolios of such underlying belongings. The Corporate has appointed AXA Funding Managers Paris an funding control corporate with a department specialized in structured credit score, for the funding control of all its belongings.


AXA Funding Managers (AXA IM) is a multi-expert asset control corporate inside the AXA Staff, a world chief in monetary coverage and wealth control. AXA IM is without doubt one of the biggest Ecu-based asset managers with 2,460 pros and €887 billion in belongings underneath control as of the tip of December 2021.


This press liberate is revealed via AXA Funding Managers Paris (“AXA IM”), in its capability as choice funding fund supervisor (inside the which means of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Restricted (the “Volta Finance”) whose portfolio is controlled via AXA IM.

This press liberate is for info most effective and does no longer represent a call for participation or inducement to procure stocks in Volta Finance. Its stream is also prohibited in positive jurisdictions and no recipient would possibly flow into copies of this file in breach of such barriers or restrictions. This file isn’t an be offering on the market of the securities referred to herein in america or to individuals who’re “U.S. individuals” for functions of Law S underneath the U.S. Securities Act of 1933, as amended (the “Securities Act”), or in a different way in instances the place such be offering could be restricted via acceptable regulation. Such securities is probably not bought in america absent registration or an exemption from registration from the Securities Act. Volta Finance does no longer intend to check in any portion of the be offering of such securities in america or to habits a public providing of such securities in america.


This conversation is most effective being allotted to and is most effective directed at (i) individuals who’re out of doors the United Kingdom or (ii) funding pros falling inside of Article 19(5) of the Monetary Services and products and Markets Act 2000 (Monetary Promotion) Order 2005 (the “Order”) or (iii) top web price firms, and different individuals to whom it should lawfully be communicated, falling inside of Article 49(2)(a) to (d) of the Order (all such individuals in combination being known as “related individuals”). The securities referred to herein are most effective to be had to, and any invitation, be offering or settlement to subscribe, acquire or in a different way gain such securities might be engaged in most effective with, related individuals. Somebody who isn’t a related individual will have to no longer act or depend on this file or any of its contents. Previous functionality can’t be trusted as a information to long run functionality.

This press liberate incorporates statements which can be, or would possibly deemed to be, “forward-looking statements”. Those forward-looking statements will also be known by way of forward-looking terminology, together with the phrases “believes”, “expected”, “expects”, “intends”, “is/are anticipated”, “would possibly”, “will” or “will have to”. They come with the statements in regards to the degree of the dividend, the present marketplace context and its have an effect on at the long-term go back of Volta Finance‘s investments. By way of their nature, forward-looking statements contain dangers and uncertainties and readers are cautioned that one of these forward-looking statements don’t seem to be promises of long run functionality. Volta Finance’s exact effects, portfolio composition and function would possibly vary materially from the influence created via the forward-looking statements. AXA IM does no longer adopt any legal responsibility to publicly replace or revise forward-looking statements.

Any goal knowledge is according to positive assumptions as to long run occasions which would possibly not end up to be realised. Because of the uncertainty surrounding those long run occasions, the objectives don’t seem to be supposed to be and will have to no longer be considered earnings or income or another form of forecasts. There will also be no assurance that any of those objectives might be completed. As well as, no assurance will also be for the reason that the funding function might be completed.

The figures only if relate to previous months or years and previous functionality can’t be trusted as a information to long run functionality or construed as a competent indicator as to long run functionality. All through this overview, the quotation of particular trades or methods is meant let’s say one of the funding methodologies and philosophies of Volta Finance, as carried out via AXA IM. The ancient good fortune or AXA IM’s trust one day good fortune, of any of those trades or methods isn’t indicative of, and has no concerning, long run effects.

The valuation of monetary belongings can range considerably from the costs that the AXA IM may download if it sought to liquidate the positions on behalf of the Volta Finance because of marketplace stipulations and normal financial surroundings. Such valuations don’t represent a equity or an identical opinion and will have to no longer be considered such.

Editor: AXA INVESTMENT MANAGERS PARIS, an organization integrated underneath the rules of France, having its registered administrative center positioned at Excursion Majunga, 6, Position de los angeles Pyramide – 92800 Puteaux. AXA IMP is permitted via the Autorité des Marchés Financiers underneath registration quantity GP92008 instead funding fund supervisor inside the which means of the AIFM Directive.


  • Volta – Per 30 days Document – December 2022
Volta Finance Limited – Net Asset Value as at 31 December 2022

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