×

THIS DOCUMENT IS NOT AVAILABLE TO ‘U.S. PERSONS’, NOR TO PARTIES WHO ARE NOT CONSIDERED ‘RELEVANT PERSONS’ IN THE UNITED KINGDOM, NOR SHOULD IT BE TAKEN, TRANSMITTED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, TO EITHER OF THESE CATEGORIES.

Volta invests in a broad portfolio of structured finance assets, maintaining flexibility to optimise long-term returns in highly dynamic markets. Its five-year 12.9% p.a. shareholder return has been generated by predictable coupons and dividends, and not from capital gains. Volta’s long-term NAV returns have beaten those of peers for an in-line volatility. Its deep market understanding has identified assets mis-priced for risk. Economic downturns create opportunities, as well as threats.

  • Volta monthly report: In August Volta’s NAV rose 1.2%, taking it to €8.46 and the year-to-date (YTD) performance to +5.4%. The five-year performance has been +12.9% p.a. The overall portfolio mix was largely unchanged by asset class. The top five underlying exposures remain under 2.5% of NAV.
  • Peers’ monthly reports: Carador reported a 0.25% rise in its $ NAV (YTD 2.79%). Fair Oaks Income reported that its NAV was down 0.09% in August. Blackstone GSO Loan Financing reported that its € NAV rose 1.46% in the month (YTD 4.45%). TwentyFour Income Fund reported a 0.5% rise in NAV (YTD 2.96%).
  • Valuation: Volta trades at a 15% discount to NAV. Peer-structured finance funds, and a range of other debt funds, on average, trade at small premia. In the medium term, Volta has delivered faster NAV growth than its immediate peers and an in-line volatility, making this discount an anomaly.
  • Risks: Credit risk is a key sensitivity (Volta has a widely-diversified portfolio). We examine the valuation of assets, highlighting the multiple controls to ensure its validity. NAV is affected by sentiment towards its own and underlying markets. Volta’s long $ position is only partially hedged.
  • Investment summary: Volta is an investment for sophisticated investors, as there may be sentiment-driven, share-price volatility. However, long-term returns have been good: 12.9% p.a. returns (dividend re-invested basis) over five years. The current portfolio expected NAV return is similar. The yield is 8.6%, and we believe it will be covered by predictable income streams.
Download the full report

Request a meeting

If you'd like to be introduced to the team at Volta Finance, get in touch.

Request a meeting