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Volta Finance Limited Net Asset Value(s) as at 31 October 2025
Dear Investors,
In October, Volta Finance posted a net return of -0.6%, taking the year-to-date performance to +2.9%. For context, US High Yield bonds returned +7.3%*** and Euro High Yield bonds achieved +4.7% over the same period, while the Morningstar Leveraged Loan indices were up +4.9%*** in the US and +3.2% in Europe.
Market activity this month was shaped by political events, central bank decisions and company earnings reports. Early optimism, driven by strong AI-related revenues and high valuations in the tech sector, quickly turned to volatility as renewed trade tensions emerged. The announcement of fresh tariffs triggered the sharpest single-day fall in the S&P 500 since April. With little economic data available due to the US government shutdown, investors looked to central banks for direction. The US Federal Reserve responded by cutting interest rates by 25 basis points, as widely expected. Meanwhile, US corporate earnings were strong, with around 85% of S&P 500 companies beating expectations, which helped fuel a late rally and push US equities to new record highs.
In the credit markets, the Morningstar LSTA Leveraged Loan Indices recorded returns of +0.22% in the US*** and -0.27% in Europe. Both indices experienced some decline in price, but the high yields offered by these loans helped cushion the impact. CLOs saw spreads stabilise for senior and investment grade tranches, with AAA-rated CLOs trading around 120 basis points in the US and 130 basis points in Europe. However, deeper mezzanine tranches, particularly BB-rated CLOs, saw spreads widen modestly, especially in Europe, where levels moved towards 575 basis points depending on the deal. In the CLO Equity market, negative headlines—such as concerns around First Brands—and tighter spreads in the underlying loan portfolios (with compression of 10–30 basis points in Europe and 30–40 basis points in the US for CLOs in their reinvestment periods) led to softer prices in secondary trading.
During the month, Volta invested c. EUR 5m into 6 unique trades focusing on BB-rated and single-B rated tranches of European CLOs. BBs were sourced in the +560bps context while single-Bs were sourced in the +850bps context, i.e slightly wider than September prints for similar risk profiles. The company’s cash position consequently continued to decrease and moved sub 16% while the cash-flow generation reached c. EUR 26m equivalent, or 20% of October’s NAV on an annualized basis.
In terms of performance breakdown, Volta’s CLO Equity tranches returned -1.9%** while CLO Debt tranches returned +0.1% performance**. The EUR/USD move from 1.1757 to 1.1537 had a +0.3% positive impact on Volta performance given the long dollar exposure (13%).
As of end of October 2025, Volta’s NAV was €265.3m, i.e. €7.25 per share.
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
BNP Paribas S.A, Guernsey Branch
guernsey.bp2s.volta.cosec@bnpparibas.com
+44 (0) 1481 750 853
Cavendish Securities plc
Andrew Worne
Daniel Balabanoff
+44 (0) 20 7397 8900
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.
AXA Investment Managers (AXA IM) is a multi-expert asset management company within the BNP Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with more than 3,000 professionals and €879 billion in assets under management as of the end of June 2025.
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