REG-Volta Finance Limited - Net Asset Value(s) as at 31 May 2025

Volta FinanceAnnouncement

24/06/2025 12:15

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


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

Guernsey, June 24, 2025

AXA IM has published the Volta Finance Limited (the “Company” or “Volta
Finance” or “Volta”) monthly report for May 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,

In May, Volta Finance’s net performance reached +3.3% bringing the
performance from August 2024 to date to +10.7%. Our investments in CLO Debt
and CLO Equity recovered some of their post-liberation day volatility due to
improved market sentiment.

May saw a more positive macroeconomic environment, helping markets recover
most of the losses from the previous month. The 90-day tariff rollback from
Washington towards China signaled a pause in the U.S. Both European and US
Equity markets rose sharply, while credit indices showed a V-shaped recovery.
U.S. 30-year Treasury yields rose above 5% for the first time since October
2023 after Moody’s downgraded the U.S. credit rating. Although yields fell
back later in the month, this jump reminded investors of ongoing worries about
fiscal health.

In terms of macroeconomic data, US inflation was encouraging as CPIs cooled to
2.3 % year-on-year while the euro-area inflation held at 2.2 %. Impacted by
tariffs, the U.S. Q1 GDP contracted by an annualized 0.3 % due to pre-tariff
stockpiling, while the Eurozone experienced growth of +0.3%
quarter-on-quarter, supported by resilient demand in the Services industry.
Labor markets also showed positive figures on both sides of the Atlantic, with
the euro-area unemployment rate reaching a record-low of 6.2 % notably.

Credit markets performed strongly in May. The European High Yield index
(Xover) was around 50bps tighter and closed 300bps. On the Loan side, Euro
Loans closed almost 1pt up at 97.80px (Morningstar European Leveraged Loan
Index) while US Loans closed c. 1 pt up at 96.70px. The primary CLO markets
were active again, with levels tightening across the capital structure,
notably with BBs in the Mid +500bps. In terms of performance, US BBs total
returned +3% on the month. For comparison, US High Yield returned +1.7% in the
same period while Euro High Yield was down +1.3% and Global Loans up +1.5%.

In terms of loan fundamentals, default rates remained steady at 4.4% in the US
(including Liability Management Exercises) but we noticed an uptick in
downgrades with 12% of B- exposures downgraded down to CCC category by S&P in
the US loan market.

Due to ongoing uncertainties, we consciously decided not to fully reinvest our
16% cash position at the end of April. We ended May with c.10% of Volta’s
NAV in cash, with capital deployment into €10.7m of CLO debt tranches as
well as into our 2 warehouses. Our European CLO warehouse was converted into
an effective CLO Equity at the end of the month. In addition, Volta
Finance’s cashflow generation remained stable at €28.1m equivalent in
interests and coupons over the last six months, representing close to 21% of
May’s NAV on an annualized basis.

Over the month, Volta’s CLO Equity tranches returned +5.9%** while CLO Debt
tranches returned +2.8% performance**. The dollar slipped to a six-week low
against the Euro at $1.15 per Euro with very limited impact of our long dollar
exposure in terms of performance (-0.02%). In this uncertain macroeconomic
environment, we have kept our net long USD exposure at c.13% to limit the
potential for margin calls.

As of end of May 2025, Volta’s NAV was €271.8m, i.e. €7.43 per share.

*It should be noted that approximately 0.24% 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 0.17% as at 30 April 2025,
0.07% 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-May 2025
(https://ml-eu.globenewswire.com/Resource/Download/e0a38b9b-f7c8-4368-b127-7d5087e94a3b)