Volta Finance 10.8% YTD 2024 return more than doubles broader credit markets

AXA IM has published the Volta Finance Ltd (LON:VTA) monthly report for July 2024.

PERFORMANCE and PORTFOLIO ACTIVITY

Dear investors,

Volta Finance continued to perform with a net performance of +0.9% in July (including a dividend payment of 14.5 cents per share), bringing the year-to-date return at +10.8% and the Financial Year performance at 19.7% (July 2023 to July 2024). This is to be put in perspective with broader Credit markets, especially since both US and Euro High Yield returned circa +4.50% since January 1st, 2024.

After a turbulent June, the financial markets regained some strength due to positive results from the French snap elections and various US political news about the upcoming presidential race. The PMI (Purchasing Managers’ Index) readings, especially in Europe, suggested that the European Central Bank might cut interest rates, and a similar process might start in the US in September. Regarding company earnings, early data indicated a slowdown in sales and revenues in the US, possibly leading to an Equity market correction. The interest rates fluctuated, with US 10-year treasuries settling just below 4.1% at the end of the month. During the month, High Yield indices tightened from +319bps (end-of-June) to +294bps in Europe (Xover) and from +345bps to +331bps in the US. Loan markets were also stronger with Morningstar European Leveraged Loan Index moving from 97.60px to 98.95px, while its US counterpart was unchanged at c. 96.60px.

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