Volta Finance Ltd (LON:VTA) monthly report for October 2023, published by AXA IM.
PERFORMANCE and PORTFOLIO ACTIVITY
Volta Finance posted another positive monthly performance in October 2023 (+0.5%) bringing the YTD performance to 19.1%.
As Portfolio Managers, we always try to think outside the box and implement our views in order to optimize returns whilst keeping enough flexibility to face “exogenous shocks” should they arise. The breakout of an unexpected full-blown conflict in the Middle-East had – and still has – grounds to embody such an event as its implications may send shockwaves far beyond the peninsula. In the meantime, we were also conscious of the mixed economic indicators released worldwide as on one side the US and China displayed favorable GDP growth numbers hinting to a recovery in terms of consumer spending while on the other side Europe was facing stagnant growth outlooks amid fiscal concerns. The trajectory of the Leveraged Loan Index (ELLI) was dictated by those elements, it peaked at 96.7% in late September then retraced to 95.0% by mid-October. Following the dovish stance from the Fed post data release, it rebounded and closed at 95.4% on the 1st of November. The price moves on CLO debt tranches were down, unsurprisingly: the average USD CLO BB tranche price moved from 88.9% in September to 87.7% in October (JPM CLO Index).