Volta Finance: A Rocky November in the Investment World

Market Performance

• Volta Finance:
• Net Return: -0.6%
• Year-to-Date Performance: +2.3%
• US High Yield Bonds: +7.8%
• Euro High Yield Bonds: +4.8%
• Morningstar Leveraged Loan Indices:
• US: +5.2%
• Europe: +3.6%

Market Volatility and Concerns

• Tech Stocks: Increased volatility due to high valuations, especially in AI-related stocks.
• Nvidia's Earnings: Sparked doubts about AI profitability, leading to a tech stock price drop.
• Debt Insurance Costs: Rose for companies with heavy AI exposure, such as Oracle.

Economic Data

• US Economy: Showed strength but weak growth outside tech.
• Job Market: Softened.
• Global Events: Political tensions and government decisions impacted investor confidence.
• Interest Rates: Kept steady by the US central bank, but potential rate cuts hinted due to weakening consumer confidence and retail sales.

Loan Performance

• Morningstar LSTA Leveraged Loan Indices:
• US: +0.32%
• Europe: +0.58%
• European Loans: Flat price performance.
• US Loans: Slightly down, but carry helped smooth out price impacts.
• CLO Tranches:
• Senior Tranches: Spreads stabilized.
• Mezzanine Tranches: Spread widening, especially in Europe.

Volta Finance Investments

• New Investments: €5.5 million in new assets, mostly in new issues.
• Investments: BB-rated and single-B rated tranches in US and European CLOs.
• Cash Position: Decreased to 13% of assets.
• Cash Flow: Generated €26 million, about 20% of November’s NAV on an annualized basis.

Performance Breakdown

• CLO Equity Tranches: -1.5%
• CLO Debt Tranches: +0.8%
• NAV as of November 2025: €263.6 million (€7.21 per share).

Additional Notes

• Unavailable NAVs: 0.14% of Volta’s NAV from investments without immediate month-end NAVs.
• Valuation Method: Most recently available NAV or quoted price.
• Performance Calculation: Dietz-performance method, considering mark-to-market value and payments received, ignoring cross-currency rate changes.