AXA IM has published the Volta Finance Ltd (LON:VTA) monthly report for December 2024. The full report is attached to this release.
Performance and Portfolio Activity
Dear Investors,
Volta Finance achieved a net performance of +0.3% in the final month of the calendar year – including a dividend payment of 15 cents per share – , bringing the return of the portfolio to +21.2% for the full calendar year 2024. While our CLO Debt investments performed favourably, CLO Equity valuations were slightly down on the month amid increased volatility into year-end.
The Federal Open Market Committee (FOMC) meeting in December gave contradictory signals. They reduced interest rates as expected, but they also indicated that they might not lower rates in the future due to inflation staying above 2%. This caused 10-year U.S. Treasury bond yields to rise above 4.5% and led to market volatility worldwide. The VIX, an index that measures expected market volatility, reached its highest level since summer.
In Europe, Moody’s downgraded France’s credit rating to Aa3 due to political instability and President Macron’s struggles to form a stable government. Similarly, German Chancellor Olaf Scholz lost a confidence vote, which could lead to early elections in 2025.
