Volta Finance: A Rocky November in the Investment World

In November 2025, Volta Finance saw a slight dip in returns, with a net return of -0. 6%. This brought their year-to-date performance to +2. 3%. Meanwhile, other investments like US High Yield bonds and Euro High Yield bonds performed much better, with returns of +7. 8% and +4. 8% respectively. The Morningstar Leveraged Loan indices also showed gains, with the US up +5. 2% and Europe up +3. 6%. The month was marked by increased market volatility. Investors grew concerned about the high valuations of technology stocks, especially those tied to artificial intelligence (AI). After Nvidia's earnings report, doubts arose about the profitability of AI investments, leading to a sharp drop in tech stock prices. Companies with heavy AI exposure, like Oracle, saw the cost of insuring their debt rise. Economic data was mixed. The US economy showed some strength, but growth outside the tech sector was weak, and the job market softened. Global events, such as political tensions and government decisions, also impacted investor confidence. The US central bank kept interest rates steady, but weakening consumer confidence and retail sales hinted at possible rate cuts in the future.Loans had a mixed performance. The Morningstar LSTA Leveraged Loan Indices recorded returns of +0. 32% in the US and +0. 58% in Europe. While European loans had a flat price performance, US loans were slightly down, though carry helped smooth out price impacts. CLO tranches saw spreads stabilize for senior tranches, while mezzanine tranches experienced spread widening, especially in Europe. Volta Finance remained active, investing about €5. 5 million in new assets, mostly in new issues. They invested in BB-rated and single-B rated tranches in both US and European CLOs. The fund's cash position decreased to 13% of its assets, and it generated about €26 million in cash flow, which is about 20% of November’s NAV on an annualized basis. In terms of performance breakdown, Volta’s CLO Equity tranches returned -1. 5%, while CLO Debt tranches returned +0. 8%. As of the end of November 2025, Volta’s NAV was €263. 6 million, or €7. 21 per share. It's important to note that about 0. 14% of Volta’s NAV comes from investments for which month-end NAVs are not immediately available. These are valued using the most recently available NAV or quoted price. The performance of asset classes is calculated using the Dietz-performance method, which considers the mark-to-market value of assets and payments received, but ignores changes in cross-currency rates.