REG-Volta Finance Limited - Net Asset Value(s) as at 30 April 2025

Volta FinanceAnnouncement

23/05/2025 17:15

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Volta Finance Limited (VTA / VTAS)
April 2025 monthly report


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

Guernsey, May 23(rd), 2025

AXA IM has published the Volta Finance Limited (the “Company” or “Volta
Finance” or “Volta”) monthly report for April 2025. The full report is
attached to this release and will be available on Volta’s website shortly
(www.voltafinance.com).

Performance and Portfolio Activity

Dear Investors,

Volta Finance’s net performance for the month of April was negative -2.4%,
taking the Aug 2024-to-date performance to +7.1%. Both our investments in CLO
Debt and CLO Equity have experienced volatility post-liberation day, reflected
in the valuation of the underlying assets of the fund.

April was dominated by highly volatile markets driven by a confluence of
macroeconomic and geopolitical events. On April 2, 2025, President Trump
announced aggressive tariff policies aimed at addressing trade imbalances and
bolstering U.S. economic sovereignty. Key measures included a 10% baseline
tariff on all countries, with higher reciprocal tariffs on countries with
significant trade deficits. These tariffs prompted swift responses from
trading partners, notably escalating tensions with China, leading the U.S. to
further increase tariffs on Chinese products to 145%.

These announcements triggered immediate market reactions, causing U.S. and
European stock indices to experience sharp declines amid fears of disrupted
supply chains and higher costs. Markets partially recovered by month's end as
the Trump administration declared a 90-day tariffs pause on all countries that
did not retaliate. From a macroeconomic perspective, sentiment was mixed. The
April U.S. jobs report indicated resilience, with 177,000 jobs
added—surpassing expectations—and the unemployment rate holding steady at
4.2%. However, GDP data painted a less optimistic picture, with a -0.3%
annualized contraction in Q1 2025, sharply down from the previous quarter's
2.4% growth. Increased imports and reduced government spending drove this
decline, prompting the IMF to revise recession risks upward from 25% to 40%,
while the Federal Reserve lowered its 2025 GDP growth forecast to 1.7%. In
Europe, the ECB cut interest rates by 25 basis points to 2.25% amid weakening
growth prospects and tariff-related uncertainties, also revising the bloc's
2025 growth forecast down to 0.9% from 1.1%.

Market-wise, the European High Yield index (Xover) closed around 40bps wider
while Euro Loans lost 1pt at 97.80px (Morningstar European Leveraged Loan
Index). US Loans were down as well (-85cts) at 96.30px. Primary CLO markets
remained busy as many transactions had secured orders, while levels moved
wider across the capital structure, notably with BBs north of +600bps and
single-Bs above +900bps. In terms of performance, CLO BB tranches total
returns reached -1.5%. This is to be put in perspective with US High Yield
returning -1.07% in the same period and Euro High Yield -1%.

In terms of defaults, Liability Management Exercises (aka ‘LME’) are now
the norm in the US market. Default rate in the US is standing at c.4.3% (0.8%
excluding LME) according to Morningstar LL Index while the default rate in
Europe is kept at 0.3% at the end of March in terms of principal amount. This
is resulting into some par erosion and some pressure on CCC headroom for
amortizing CLO.

In front of these uncertainties, we decided to increase our cash up to c.16%
of NAV at the end of the month through active management in addition to strong
CLO Equity distributions: we received €7.5m coming from called CLO Equities,
sold European CLO single B and redeemed US CLO debt. At the opposite, we
invested into our US and European CLO warehouses €1.9m to buy loans at a
discount and €2.3m into CLO debt tranches. In addition, Volta Finance’s
cashflow generation remained stable at €28.5m equivalent of interests and
coupons over the last six months, representing close to 22% of April’s NAV
on an annualized basis.

Over the month, Volta’s CLO Equity tranches returned -3.6%** while CLO Debt
tranches returned -0.9% performance**. This performance is consistent –
although better - with the total returns of the product as mentioned above,
especially when considering that Volta Finance is exposed to both BB and
single-B tranches.

Through the month, the dollar volatility had again a meaningful impact on the
overall funds’ performance (-0.64%). In the second half of the month,
considering the potential change into the long-term investor view on the
dollar, we decided to lower our exposure to USD to avoid further weakening and
decreased our exposure to c.12%.

As of end of April 2025, Volta’s NAV was €262.9m, i.e. €7.19 per share.

*It should be noted that approximately 4.24% 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 4.24% as at 31 March 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.

CONTACTS

For the Investment Manager
AXA Investment Managers Paris
François Touati
francois.touati@axa-im.com
+33 (0) 1 44 45 80 22

Olivier Pons
Olivier.pons@axa-im.com
+33 (0) 1 44 45 87 30

Company Secretary and Administrator
BNP Paribas S.A, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com 
+44 (0) 1481 750 853

Corporate Broker
Cavendish Securities plc
Andrew Worne
Daniel Balabanoff
+44 (0) 20 7397 8900

***** 
ABOUT VOLTA FINANCE LIMITED

Volta Finance Limited is incorporated in Guernsey under The Companies
(Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the
London Stock Exchange's Main Market 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 regulation and supervision by the
AFM, being the regulator for financial markets in the Netherlands.

Volta’s Investment objectives are to preserve its capital across the credit
cycle and to provide a stable stream of income to its Shareholders through
dividends that it expects to distribute on a quarterly basis. The Company
currently seeks to achieve its investment objectives by pursuing exposure
predominantly to CLO’s and similar asset classes. A more diversified
investment strategy across structured finance assets may be pursued
opportunistically. The Company has appointed AXA Investment Managers Paris an
investment management company with a division specialised in structured
credit, for the investment management of all its assets.

*****

ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-expert asset management company
within the AXA Group, a global leader in financial protection and wealth
management. AXA IM is one of the largest European-based asset managers with
2,800 professionals and €859 billion in assets under management as of the
end of June 2024.  

*****

This press release 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 "Volta Finance") whose portfolio is managed by AXA IM.

This press release is for information only and does not constitute an
invitation or inducement to acquire shares in Volta Finance. Its circulation
may be prohibited in certain jurisdictions and no recipient may circulate
copies of this document in breach of such limitations or restrictions. This
document is not an offer for sale of the securities referred to herein in the
United States or to persons who are “U.S. persons” for purposes of
Regulation S under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), or otherwise in circumstances where such offer would be
restricted by applicable law. Such securities may not be sold in the United
States absent registration or an exemption from registration from the
Securities Act. Volta Finance does not intend to register any portion of the
offer of such securities in the United States or to conduct a public offering
of such securities in the United States.

*****

This communication is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) investment professionals
falling within Article 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 lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as “relevant persons”). The securities referred to herein are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents. Past performance cannot be
relied on as a guide to future performance.

*****
This press release contains statements that are, or may deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "anticipated", "expects", "intends", "is/are expected", "may",
"will" or "should". They include the statements regarding the level of the
dividend, the current market context and its impact on the long-term return of
Volta Finance's investments. By their nature, forward-looking statements
involve risks and uncertainties and readers are cautioned that any such
forward-looking statements are not guarantees of future performance. Volta
Finance's actual results, portfolio composition and performance 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.

Any target information is based on certain assumptions as to future events
which may not prove to be realised. Due to the uncertainty surrounding these
future events, the targets are not intended to be and should not be regarded
as profits or earnings or any other type of forecasts. There can be no
assurance that any of these targets will be achieved. In addition, no
assurance can be given that the investment objective will be achieved.

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 Volta Finance, 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.

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 Volta Finance 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.

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 - 92800 Puteaux. AXA IMP is authorized by the Autorité des
Marchés Financiers under registration number GP92008 as an alternative
investment fund manager within the meaning of the AIFM Directive.

*****

Attachment
*     Volta - Monthly report- April 2025
(https://ml-eu.globenewswire.com/Resource/Download/08f528b2-c903-4b3c-be9c-772ccef88246)