Research from Hardman & Co, Hardman & Co

Hardman & Co

Research from Hardman & Co

Investment research on quoted companies and funds

Hardman & Co is a multi-disciplinary financial consultancy and investment research firm, employing highly experienced analysts and professionals with a broad range of capital markets expertise. Our clients are public and private businesses as well as fund managers, ranging from start-ups to £1 billion+ market capitalisations. Hardman & Co offers corporate research & consultancy, serving the needs of both public and private companies. We produce gold-standard research with a global reach for trading and investment companies, as well as providing market commentary and analysis. In addition, we carry out a number of bespoke investment-related assignments, including due diligence on bond listings, assessments of private company valuations and other corporate advisory services. We engage with the market through traditional and digital media, offering illuminating video content on corporate management strategy, results communication, interviews and in-house sector discussion.

Equity Bottom-Up

<ul>
<li>In this report we review Volta’s volatility during recent “crisis” periods (2025 tariff uncertainty, Russia’s 2022 invasion of Ukraine, early COVID-19 experience).</li>
<li>In one of these events, Volta’s share price showed more volatility than that of equity markets, in one it was broadly in line, and in one it displayed less volatility.</li>
<li>There is insufficient evidence to say Volta is more or less volatile than equity markets in risk-off periods, which may come as a surprise to some investors.</li>
</ul>


In this report we review Volta’s volatility during recent “crisis” periods (2025 tariff uncertainty, Russia’s 2022 invasion of Ukraine, early COVID-19 experience).
In one of these events, Volta’s share price showed more volatility than that of equity markets, in one it was broadly in line, and in one it displayed less volatility.
There is insufficient evidence to say Volta is more or less volatile than equity markets in risk-off periods, which may come as a surprise to some investors.


Volta Finance Limited (VTAS): Volatility put into context

<ul>
<li>Volta has delivered +21.2% 2024 total NAV return, outperforming i) B-rated CLO tranches (+19.2%), ii) US high yield (+8.2%), iii) Euro high yield (+8.6%), and iv) global loans (+7.3%).</li>
<li>Its performance reflects positive markets and the incremental value added by the manager through its asset selection and portfolio management.</li>
<li>Looking into 2025, we expect another strong year from CLOs: more market growth (partially driven by loans issued to fund greater PE activity), and stable, if not falling, defaults offsetting some spread tightening and fewer pull to par benefits from loans restructuring.</li>
</ul>


Volta has delivered +21.2% 2024 total NAV return, outperforming i) B-rated CLO tranches (+19.2%), ii) US high yield (+8.2%), iii) Euro high yield (+8.6%), and iv) global loans (+7.3%).
Its performance reflects positive markets and the incremental value added by the manager through its asset selection and portfolio management.
Looking into 2025, we expect another strong year from CLOs: more market growth (partially driven by loans issued to fund greater PE activity), and stable, if not falling, defaults offsetting some spread tightening and fewer pull to par benefits from loans restructuring.


Volta Finance Limited (VTAS): 2024 experience bodes well for 2025

<ul>
<li>Volta’s monthly to its FY-end of July reported an NAV total return of 19.7% while annualised cash receipts are 22% of the July NAV, consistent with levels seen since mid’22.</li>
<li>For 16 consecutive months, it has generated positive NAV returns.</li>
<li>In this note, we detail the different elements that have driven this performance.</li>
</ul>


Volta’s monthly to its FY-end of July reported an NAV total return of 19.7% while annualised cash receipts are 22% of the July NAV, consistent with levels seen since mid’22.
For 16 consecutive months, it has generated positive NAV returns.
In this note, we detail the different elements that have driven this performance.


Volta Finance Limited (VTAS): FY’24 - another year of outperformance

<ul>
<li>Volta’s share price discount to NAV (26%) is now back to the levels seen in the early stages of the pandemic.</li>
<li>This appears anomalous with 6.3% total shareholder return in 1Q’24, the annualised cashflows in excess of 20%, the consensus outlook, as well as the structured debt finance and all investment company averages (11% and 6%, respectively).</li>
<li>In our view, any discount reflects investor concerns that either the current NAV is unrealistic or that it cannot be achieved in the future.</li>
</ul>


Volta’s share price discount to NAV (26%) is now back to the levels seen in the early stages of the pandemic.
This appears anomalous with 6.3% total shareholder return in 1Q’24, the annualised cashflows in excess of 20%, the consensus outlook, as well as the structured debt finance and all investment company averages (11% and 6%, respectively).
In our view, any discount reflects investor concerns that either the current NAV is unrealistic or that it cannot be achieved in the future.


Volta Finance Limited (VTAS): Putting the discount into perspective

United Kingdom

Volta Finance Ltd. is a closed-ended investment company managed by AXA Investment Managers Paris.  The Company seeks to preserve capital and to provide a stable stream of income to its shareholders through annual dividends. Volta Finance invests in corporate credits, collateralized debt obligations, other asset backed securities, leveraged loans, and infrastructure assets.

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Volta Finance (VTAS LN)

Volta Finance Limited (VTAS): Volatility put into context

In this report we review Volta’s volatility during recent “crisis” periods (2025 tariff uncertainty, Russia’s 2022 invasion of Ukraine, early COVID...

Hardman & Co

Volta Finance Limited (VTAS): 2024 experience bodes well for 2025

Volta has delivered +21.2% 2024 total NAV return, outperforming i) B-rated CLO tranches (+19.2%), ii) US high yield (+8.2%), iii) Euro high yield...

Hardman & Co

Volta Finance Limited (VTAS): FY’24 - another year of outperformance

Volta’s monthly to its FY-end of July reported an NAV total return of 19.7% while annualised cash receipts are 22% of the July NAV, consistent...

Hardman & Co

Volta Finance Limited (VTAS): Putting the discount into perspective

Volta’s share price discount to NAV (26%) is now back to the levels seen in the early stages of the pandemic. This appears anomalous with 6.3%...

Hardman & Co

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