VOLTA FINANCE - DECEMBER MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 17 January 2012 - Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") has published its monthly report. The full report is
attached to this release and is available on Volta Finance Limited's financial
website (www.voltafinance.com).
Gross Asset Value
+-------------------------------------+-------------+-------------+
| | At 30.12.11 | At 30.11.11 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 139.1 | 135.8 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 4.51 | 4.41 |
+-------------------------------------+-------------+-------------+
At the end of December 2011, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?139.1m or ?4.51 per
share, an increase of ?0.10 per share from ?4.41 GAV per share at the end of
November 2011. The end of December GAV did not take into account the dividend
payment which took place the 16(th) of January.
The 2011 annual performance of Volta's assets, including the April dividend
payment and according to the GAV, is a positive 10.3%.
The December mark-to-market variations* of Volta Finance's asset classes have
been: +26.4% for ABS investments, +0.1% for mezzanine of CDO investments, -0.5%
for residuals of CDO investments and +1.0% for Corporate Credit investments. The
GAV increase in December was in line with slightly positive credit markets in
December.
Volta's assets generated the equivalent of ?2.4m of cash flows in December 2011
(non-Euro amounts converted to Euro using end-of-month cross currency rates and
excluding principal payments from debt assets) bringing the total cash generated
during the last six months to ?14.7m. This amount can be compared with ?11.8m
for the previous six-month period ended in June 2011 (the most recent period
which is comparable considering the seasonality of payments).
In December, no asset was sold or bought by the Company.
At the end of December, Volta held ?6.7m in cash, including ?1m posted in
respect of the currency hedge. Considering the pace at which cash flows are
generated and the necessity to keep cash available for the next dividend
payment, Volta could be considered as fully invested.
MARKET ENVIRONMENT
In December, credit spreads tightened modestly in Europe and in the US
reflecting the remaining uncertainties regarding Europe capability to settle a
comprehensive package to face the Euro sovereign debt crisis. The spread of the
5y European iTraxx index and of the 5y iTraxx European Crossover Index (series
16) decreased, respectively, from 185 and 759 bps at the end of November to 173
and 755 bps at the end of December. During the same period, credit spreads in
the US, as illustrated by the 5y CDX main index (series 17), went from 131 to
120 bps at the end of December 2011. According to the CSFB Leverage Loan Index,
the average price for US liquid first lien loans modestly increased from 91.88%
to 92.19% at the end of December.**
Overall, the tensions that have been present in most markets since March have
affected structured finance markets since June. On average, prices are back to
the end of 2010 levels or slightly lower. The significantly positive 2011
performance of Volta's assets mostly reflects the ability of the Company to
generate cash flows from its asset base.
VOLTA FINANCE PORTFOLIO
In December, no particular event materially affected the situation of the
Corporate Credit holdings. However, it should be remembered that the first-loss
positions in Jazz III and ARIA III remain highly sensitive to any credit event
that could occur, especially to financial debts considering the significant
exposures to bank debt held through these positions.
At the end of December, the average price of the assets in this bucket increased
from 39.6% to 40.2% in line with the modest tightening observed in credit
markets.
As regards the Company's investments in residual and mezzanine debt of CDOs, at
the end of December, all the 53 positions in residual or mezzanine debt of CDOs
are currently paying their coupons. The last one that was unable to do so,
Carlyle IX, resumed paying a coupon in December. No particular event materially
affected the situation of these positions.
At the end of November the 40 mezzanine debt tranches of CDOs (38 tranches of
CLOs, 1 tranche of Emerging Debt CDO and 1 tranche of CDO of ABS), totalling the
equivalent of ?102.9m of principal amount, were valued at an average price of
59% of par; the 12 classic residual tranches of CLOs, totalling the equivalent
of ?54.3m of principal amount, were valued at an average price of 59%; the rest
of the bucket, one loan fund, for the equivalent of ?11.5m of principal amount,
was valued at 75% of par.
As regards the Company's ABS investments, at the end of December, nothing
special affected the main position (Promise Mobility) or the other investments
in this bucket (6 UK non-conforming residual positions). The very good
performance of this bucket in December was due to significant amounts received
from the UK non-conforming residual positions.
The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine
tranches of CLOs and of European ABS as well as tranches of Corporate Credit
portfolios could be considered for investments. Potential investments could be
made depending on the pace at which market opportunities could be seized and
cash is available. The recent widening of discount margins has been seized upon
by the Company to invest most of the cash available. Depending on market
opportunities, the Company may aim at taking advantage of current volatility in
prices to sell some assets in order to reinvest the sale proceeds on assets
representing, at the time of purchase, what the Company can consider a better
opportunity.
* "Mark-to-market variation" is calculated as the Dietz-performance of the
assets in each bucket, taking into account the MtM of the assets at month-end,
payments received from the assets over the period, and ignoring changes in cross
currency rates Nevertheless, some residual currency effects could impact the
aggregate value of the portfolio when aggregating each bucket.
** Index data source: Markit, Bloomberg.
(Full monthly report in attachment or on www.voltafinance.com)
*****
ABOUT VOLTA FINANCE LIMITED
Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey)
Laws, 1994 to 1996 (as amended) and listed on Euronext Amsterdam. Its investment
objectives are to preserve capital and to provide a stable stream of income to
its shareholders through dividends. For this purpose, it pursues a multi-asset
investment strategy targeting various underlying assets. The assets that the
Company may invest in either directly or indirectly include, but are not limited
to: corporate credits; sovereign and quasi-sovereign debt; residential mortgage
loans; automobile loans. Volta Finance Limited's basic approach to its
underlying assets is through vehicles and arrangements that provide leveraged
exposure to some of those underlying assets.
Volta Finance Limited has appointed AXA Investment Managers Paris, an investment
management company with a division specialised in structured credit, for the
investment management of all its assets.
ABOUT AXA INVESTMENT MANAGERS
AXA Investment Managers (AXA IM) is a multi-expert asset management company
within the AXA Group, a global leader in financial protection and wealth
management. AXA IM is one of the largest European-based asset managers with ?514
billion in assets under management as of the end of June 2011. AXA IM employs
approximately 2,389 people around the world and operates out of 21 countries.
CONTACTS
Company Secretary
State Street (Guernsey) Limited
volta.finance(at)ais.statestreet.com
+44 (0) 1481 715601
Portfolio Administrator
Deutsche Bank
voltaadmin(at)list.db.com
For the Investment Manager
AXA Investment Managers Paris
Serge Demay
serge.demay(at)axa-im.com
+33 (0) 1 44 45 84 47
*****
This press release is for information only and does not constitute an invitation
or inducement to acquire shares in Volta Finance. Its circulation may be
prohibited in certain jurisdictions and no recipient may circulate copies of
this document in breach of such limitations or restrictions.
This press release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
with the United States Securities and Exchange Commission or an exemption from
registration under the U.S. Securities Act of 1933, as amended (the "Securities
Act"). Volta Finance has not registered, and does not intend to register, any
portion of any offering of its securities in the United States or to conduct a
public offering of any securities in the United States.
*****
This document is being distributed by Volta Finance Limited in the United
Kingdom only to investment professionals falling within article 19(5) of the
Financial Services and Market Act 2000 (Financial Promotion) Order 2005 (the
"Order") or high net worth companies and other persons to whom it may lawfully
be communicated, falling within article 49(2)(A) to (E) of the Order ("Relevant
persons"). The shares are only available to, and any invitation, offer or
agreement to subscribe, purchase or otherwise acquire the shares will be engaged
only with, relevant persons. Any person who is not a relevant person should not
act or rely on this document or any of its contents. Past performance cannot be
relied on as a guide to future performance.
*****
This press release contains statements that are, or may deemed to be, "forward-
looking statements". These forward-looking statements can be identified by the
use of forward-looking terminology, including the terms "believes",
"anticipated", "expects", "intends", "is/are expected", "may", "will" or
"should". They include the statements regarding the level of the dividend, the
current market context and its impact on the long-term return of Volta's
investments. By their nature, forward-looking statements involve risks and
uncertainties and readers are cautioned that any such forward-looking statements
are not guarantees of future performance. Volta Finance's actual results,
portfolio composition and performance may differ materially from the impression
created by the forward-looking statements. Volta Finance does not undertake any
obligation to publicly update or revise forward-looking statements.
Any target information is based on certain assumptions as to future events which
may not prove to be realised. Due to the uncertainty surrounding these future
events, the targets are not intended to be and should not be regarded as profits
or earnings or any other type of forecasts. There can be no assurance that any
of these targets will be achieved. In addition, no assurance can be given that
the investment objective will be achieved.
*****
December Monthly Report:
http://hugin.info/137695/R/1578301/492293.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Volta Finance Limited via Thomson Reuters ONE
[HUG#1578301]
Unternehmensinformation / Kurzprofil:
Datum: 17.01.2012 - 18:40 Uhr
Sprache: Deutsch
News-ID 105024
Anzahl Zeichen: 13516
contact information:
Town:
Guernsey
Kategorie:
Business News
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