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Volta Finance Ltd.
Earnings Release • Aug 21, 2025
9950_rns_2025-08-21_29abda6d-559d-4c5d-b4ef-5824c4511fa0.pdf
Earnings Release
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Volta Finance Ltd
Monthly Report - July 2025
| €280.7m |
|---|
| €274.2m |
| €7.49 |
| 36.6m |
| €6.80 |
| €6.90 |
Share Price (LSE)* €6.90 VTA.NA
Tickers VTA.LN
VTAS.LN ISIN GG00B1GHHH78
| ISIN | GG00B1GHHH78 |
|---|---|
| Fund Facts | |
| Launch Date | Dec-2006 |
| Fund Domicile | Guernsey |
| Listing and Trading | AEX LSE |
| Type of Fund | Closed-ended |
| Dividend | Quarterly |
| Dividend Cover 4 | 2.6 times |
| Base currency | EUR |
| Asset types | Corporate Credit and ABS |
Background and Investment Objective
AXA Investment Managers Paris ("AXA IM") has been the Investment Manager of Volta Finance Limited ("Volta") since inception. Volta's investment objectives are to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends. For this purpose, Volta pursues a multi-asset investment strategy on deals, vehicles and arrangements that provide leveraged exposure to target Underlying Assets (including corporate credit, residential and commercial mortgages, auto and student loans, credit card and lease receivables).
Fund Performance
| 9.7% | 20.6% | 2.5% |
|---|---|---|
| Annualised since inception 1 | Annualised over 5 years 1 | 1 month 2 |
€274.2m
8.9%
NAV as of July 2025 Trailing 12-month Div. Yield3
| Returns | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 1.7% | 1.6% | -2.9% | -2.4% | 3.3% | 0.4% | 2.5% | 4.1% | |||||
| 2024 | 2.8% | 1.0% | 2.3% | 1.3% | 1.7% | 0.3% | 0.9% | 0.1% | 2.3% | 4.3% | 2.1% | 0.3% | 21.2% |
| 2023 | 5.5% | 1.7% | -1.5% | 3.0% | 1.9% | 0.0% | 3.8% | 1.3% | 1.6% | 0.5% | 1.8% | 2.6% | 24.5% |
| 2022 | 1.7% | -3.9% | 1.5% | 2.3% | -11.8% | -4.6% | 4.5% | 2.8% | -7.2% | -2.6% | 6.3% | -0.9% | -12.7% |
| 2021 | 3.9% | 1.0% | 1.1% | 2.1% | 0.4% | 2.2% | 1.9% | -0.5% | 1.9% | 1.2% | 1.0% | 0.3% | 17.9% |
| 2020 | 1.1% | -2.6% | -32.4% | 5.7% | 4.5% | 6.9% | -1.2% | 1.9% | 4.8% | 1.6% | 7.2% | 4.3% | -5.7% |
<sup>1 Share (VTA.NA) performance (annualised figures with dividends re-invested). Source: Bbg (TRA function)
Asset Breakdown
As a % of Gross Assets Value
- USD CLO Equity 19.7%
- USD CLO Debt 13.9%
- EUR CLO Equity 28.9%
- EUR CLO Debt 16.9%
- CMV 3.8%
- CLO Warehouse 0.0%
- Bank Balance Sheet Transactions 0.0%
- Cash Corporate Credit Equity 0.1%
- ABS Residual Positions 0.0%
- Cash or equivalent 16.7%
- Others 0.0%
Top 10 Underlying Exposures
| Virgin Media Secured Finance PLC | 0.6% | Media | ||
|---|---|---|---|---|
| Virgin Media Secured Finance FLC | 0.0% | iviedia | ||
| Action Holding BV | 0.5% | Retail | ||
| Masorange Finco PLC | 0.5% | Telecommunications | ||
| Nidda Healthcare Holding GmbH | 0.5% | Pharmaceuticals | ||
| BMC Software Finance Inc | 0.5% | Software | ||
| Clarios | 0.4% | Telecommunications | ||
| INEOS Group Holdings SA | 0.4% | Chemicals | ||
| McAfee LLC | 0.4% | Computers | ||
| Panaleo HoldCo GmbH | Panaleo HoldCo GmbH 0.4% | |||
| Ahlsell AB | 0.4% | Distribution/Wholesale |
Source: Intex, Bloomberg, AXA IM Paris as of July 2025 – unaudited figures - not accounting for unsettled trades Figures expressed in % of the NAV
Historical Performance
Portfolio Rating Breakdown
<sup>2 Performance of published NAV (including dividend payments).
<sup>3 Calculated as the most recent annual dividend payments versus the month-end share price (VTA.NA).
<sup>4 Calculated as total income divided by the most recent annual dividend payments.
Volta Finance Ltd
Monthly Report - July 2025
Monthly Commentary
In July, Volta Finance achieved a net performance of +2.48% (including a dividend payment of 15.5 cents per share), bringing the Financial Year net performance to +13.9% (August 2024 to July 2025). To frame this performance in perspective with the broader Credit markets, US High Yield returned +8.6% between August 2024 and July 2025, while Euro High Yield returned +8.1% in that same period.
Markets recorded another solid month this July as encouraging developments in trade negotiations, resilient economic indicators and strong corporate earnings fuelled investors optimism. For instance, the United States secured several commercial agreements with key trading partners, easing tariff-related pressures and bolstering expectations for global trade stability. Although initial market reactions were subdued, these agreements helped reduce uncertainty and provided support for risky assets. Nonetheless, caution persisted ahead of the August 1 tariff deadline, particularly given the lack of resolution in negotiations with China
Economic data presented a mixed yet generally constructive outlook. U.S. labor market conditions remained robust, with declining jobless claims and a rebound in consumer spending during June. Corporate earnings further contributed to the positive sentiment with technology companies reporting strong quarterly results and lifting Equity markets altogether. Inflationary pressures, however, continued to build. The core Personal Consumption Expenditures (PCE) index rose 2.8% year-over-year, highlighting the Federal Reserve's ongoing challenges. Chair Jerome Powell reaffirmed a data-dependent approach, tempering expectations for imminent rate cuts. Meanwhile, the European Central Bank signalled a more hawkish stance, suggesting its easing cycle may be approaching its conclusion while the Bank of England readied to cut rates further.
Looking closer into Volta's market technicals, despite very low M&A volumes, loan and CLO issuance kept on being very active throughout the month of July. Repricings surged in the loan market and loan indices recorded strong performance compared to prior months (+0.88% for the US loan market and +0.55% for the European market). This led to inflated secondary loan trading prices and an increase in early redemptions of post-reinvestment period CLO. CLO debt tranches also traded tighter with US CLO BB tranches getting below the 500bps spread. At the opposite, fundamentals remained stable through the month.
As a result of these strong technicals, Volta received some early redemptions both from CLO debts (c.€5m) and CLO Equities (c.€2m equivalent). The Portfolio Management team has actively been looking at re-investing the proceeds with a bias towards the Primary market. In the context of relatively tight CLO markets and well bid Secondary due to reduced supply, cash stood at 17% at the end of the month. This shall give Volta some dry powder to pick-up risk at attractive entry points should volatility rise. Volta Finance's cashflow generation was stable at €28m equivalent in interest and coupons over the last six months, representing close to 21% of July's NAV on an annualized basis.
Over the month, Volta's CLO Equity tranches returned +5.2%** while CLO Debt tranches returned +0.6% performance**. The EUR/USD move to 1.1423 had an impact on our long dollar exposure in terms of performance (+0.46%).
As of end of July 2025, Volta's NAV* was €274.2m, i.e. €7.49 per share, up 36 cents from July 2024.
*It should be noted that approximately 0.14% of Volta's GAV comprises investments for which the relevant NAVs as at the month-end date are normally available only after Volta's NAV has already been published. Volta's policy is to publish its NAV on as timely a basis as possible to provide shareholders with Volta's appropriately up-to-date NAV information. Consequently, such investments are valued using the most recently available NAV for each fund or quoted price for such subordinated notes. The most recently available fund NAV or quoted price was 0.14% as at 30 June 2025.
** "performances" of asset classes are calculated as the Dietz-performance of the assets in each bucket, taking into account the Mark-to-Market of the assets at period ends, payments received from the assets over the period, and ignoring changes in cross-currency rates. Nevertheless, some residual currency effects could impact the aggregate value of the portfolio when aggregating each bucket.
Currency and Geography exposures (%)
Source: Intex, Bloomberg, AXA IM Paris as of July 2025 – unaudited figures - not accounting for unsettled trades Figures expressed in % of the NAV
Portfolio Composition by Asset Type
| Market Valu | e (€m) | Breakdown (% GAV) | |
|---|---|---|---|
| USD CLO Equity | 19.7% | ||
| CLO | USD CLO Debt | 13.9% | |
| 233.4 | EUR CLO Equity | 28.9% | |
| 233.4 | EUR CLO Debt | 16.9% | |
| CMV | 3.8% | ||
| CLO Warehouse | 0.0% | ||
| Synthetic Credit | Synthetic Corporate Credit Equity | 0.0% | |
| 0.1 | Synthetic Corporate Credit Debt | 0.0% | |
| Bank Balance Sheet Transactions | 0.0% | ||
| Cash Corporate 0. | Cash Corporate Credit Equity | 0.1% | |
| Credit | 0.4 | Cash Corporate Credit Debt | 0.0% |
| ABS - | ABS Residual Positions | 0.0% | |
| ABS | ABS Debt | 0.0% | |
| Cash or equivalent | 46.8 | Cash or equivalent | 16.7% |
| GAV | 280.7 | · | |
| Liability | - | Debt from Repurchase Agreement | 0.0% |
| Payables | (6.5) | Fees, dividend and other payables | (2.3)% |
| Estimated NAV | 274.2 | Per Share | 7.49 |
Last Eighteen Months Performance Attribution
Volta Finance Ltd
Monthly Report - July 2025
Important Information
This monthly report is published by AXA Investment Managers Paris ("AXA IM"), in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the "AIFM Directive") of Volta Finance Limited (the «Company») whose portfolio is managed by AXA IM. This monthly report is intended only for the person to whom it has been delivered. By obtaining access to and reviewing this monthly report, you acknowledge and agree to be bound by the following: No part of this document may be reproduced in any manner without the prior written permission of AXA IM. This monthly report does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of the Company whose portfolio is managed by AXA IM, or securities of any other entity (together, the "Securities"). The Securities described in this monthly report may not be eligible for sale in some states or countries and may not be suitable for all types of investors. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Securities in the Company may not be offered or sold directly or indirectly into the United States or to U.S. Persons. Nor shall this monthly report or any part of it nor the fact of its distribution or publication (on the Company's website or otherwise) form the basis of, or be relied on in connection with, any contract or investment decision in relation to the Securities. This monthly report does not constitute a recommendation to buy, sell or hold the Securities. The information contained herein is for information purposes only, does not purport to contain all the information that may be required to evaluate the Company or any other entity or their respective financial positions. This monthly report speaks only as of its date and neither AXA IM nor the Company is under any obligation to update the information contained herein. Certain information and estimates contained herein are originated by or derived from third parties and the accu- racy and completeness of such information and estimates has not been verified. It should also be noted that the financial information contained herein has not been audited. No representation or warranty whatsoever, whether express or implied, is given by or on behalf of AXA IM, the Company, their affiliates, or their respective directors, officers or employees or any other person as to (a) the accuracy or completeness of the information or (b) the opinions contained in this monthly report. None of AXA IM, the Company, any of their affiliates, or their respective direc- tors, officers or employees or any other person accepts any liability whatsoever for any such information or opinions. Nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance of the Company, any other entity, any Securities or any asset class in the Company's portfolio. The figures provided that relate to past months or years and past performance cannot be relied on as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of the investment methodologies and philosophies of the Company, as implemented by AXA IM. The historical success or AXA IM's belief in the future success, of any of these trades or strategies is not indicative of, and has no bearing on, future results. No statement in this monthly report is intended to be nor may be construed as a profit forecast and there can be no assurance that the assumptions described herein, the returns and targets (including without limitation target portfolio composition) indicated herein will be achieved. The views and opinions expressed herein include forward-looking statements which may or may not be accurate. Forward-looking statements can be identified by words like ''believe'', ''expect'', ''anticipate'', or similar expressions. You should not place undue reliance on forward-looking statements, which are current as of the date of this report. AXA IM disclaims any obligation to update or alter any forward- looking statements, whether as a result of new information, future events or otherwise. The valuation of financial assets can vary significantly from the prices that the AXA IM could obtain if it sought to liquidate the positions on behalf of the Company due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such. They follow the valuation policy of the Company as adapted from time to time in the best interests of the shareholders, taking into account the conditions of financial markets at that time. Volta qualifies as an alternative investment fund within the meaning of the AIFM Directive and is notified as such under the license held by AXA IM with the Autorité des Marchés Financiers (the "AMF") in France.
Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6, Place de la Pyramide 92908 Paris – La Défense cedex – France, registered with the Nanterre Trade and Companies Register under number 353 534 506, a Portfolio Management Company, holder of AMF Approval no. GP 92-08, issued on 7 April 1992.
Contact:
For the Investment Manager AXA Investment Managers Paris François Touati [email protected]
+33 (0) 1 44 45 80 22 Company Secretary and Administrator BNP Paribas S.A, Guernsey Branch [email protected] +44 (0) 1481 750 853