(Alliance News) - Volta Finance Ltd on Friday said it swung to a high positive total return and increased its net asset value in its latest financial year.

The Guernsey-incorporated investment company, which specialises in collateralised loan obligations and similar asset classes, said its NAV at July 31 was EUR6.45, up from EUR6.22 at the same time one year prior.

Volta Finance shares were untraded at EUR4.99 each in London on Friday.

The investor's NAV total return for the year ended July 31 was positive 12.7%, compared with the negative 7.3% delivered the year before.

Volta Finance said its total dividend for financial 2023 was 51 euro cents per share, down from 57 cents. This consisted of three quarterly dividends of 13 cents per share, and one of 12 cents. For financial 2022 it had paid two dividends of 15 cents, one of 14 cents and one of 13 cents.

Looking ahead, Volta Finance noted that the likelihood of the US falling into a recession has decreased and that energy prices are "cooling". It expects "higher for longer" rates, which "should benefit our floating rate assets", and said its portfolio has a slightly better position compared to market averages.

Chair Dagmar Kershaw commented that "whilst we have the benefit of a sparklingly clear view on the past year, it feels as if the markets are having plenty of fun in throwing mud at our forward-facing windscreen."

However, she added: "I remain excited about the strong cashflows that Volta generates and the high cash dividends that it pays, the inherent structure and strength of the CLO asset class, and the diversification and asset picking skill that our manager brings.

"In an economic environment where most mainstream asset classes are under pressure, our belief in Volta as an access vehicle to this alternative asset class remains robust."

By Emma Curzon, Alliance News reporter

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