VOLTA FINANCE - JANUARY MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 21 February 2012 - Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") has published its December 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 31.01.12 | At 30.12.11 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 139.8 | 139.1 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 4.52 | 4.51 |
+-------------------------------------+-------------+-------------+
At the end of January 2012, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?139.8 m or ?4.52 per
share, an increase of ?0.01 per share from ?4.51 GAV per share at the end of
December 2011. Taking into account the ?22 cents per share dividend paid in
January, the GAV increased by ?0.23 in January 2012.
After a 2011 +10.3% annual performance of Volta's assets mostly due to the
actual cash flows received from the assets, 2012 starts the year with a positive
4.2% increase.
The January mark-to-market variations* of Volta Finance's asset classes have
been: +2.3% for ABS investments, +6.0% for mezzanine of CDO investments, +4.4%
for residuals of CDO investments and +8.8% for Corporate Credit investments. The
GAV increase in January was in line with positive credit markets in January.
Volta's assets generated the equivalent of ?2.2m of cash flows in January 2012
(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 ?15.4m. This amount can be compared with ?11.9m
for the previous six-month period ended in July 2011 (the most recent comparable
period considering the seasonality of payments).
In January 2012, two assets were sold (Hermes 17-E and most of the Start
2010-6X position) by the Company for a combined amount equivalent to ?2.5m.
At the end of January, Volta held ?3.8m in cash, including ?1.2m 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
in April, Volta's capacity for new investments is limited to a few million
euros.
MARKET ENVIRONMENT
In January 2012, credit spreads tightened significantly in Europe and in the USA
reflecting some improvement regarding the economic situation in the US and less
uncertainties regarding the Euro sovereign crisis. The spread of the 5y European
iTraxx index and of the 5y iTraxx European Crossover Index (series 16)
decreased, respectively, from 173 and 755 bps at the end of December 2011 to
143 and 620 bps at the end of January 2012. During the same period, credit
spreads in the US, as illustrated by the 5y CDX main index (series 17), went
from 120 to 103 bps at the end of January 2012. According to the CSFB Leverage
Loan Index, the average price for USA liquid first lien loans modestly increased
from 92.19% to 93.60% at the end of January 2012.**
Overall, with the various tensions and uncertainties that weighted on risky
assets over the last 12 months, Volta's prices are slightly below what they were
one year ago. At the same time 6-month rolling cash flows received from our
assets increased from ?10.3m to ?15.4m (close to one euro per share on an annual
basis). Any easing in tensions and uncertainties should benefit Volta's assets
valorisation as has been the case in this first month of the year.
VOLTA FINANCE PORTFOLIO
In January 2012, 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,
especially to financial debts considering the significant exposures to bank debt
held through these positions. As already mentioned, both assets are exposed to
the Hellenic Republic through CDS.
However, a default of Greece would have a limited direct impact on Volta's GAV
as such default has been priced in for months (Indirect consequences on the rest
of the portfolio however are difficult to quantify).
At the end of January, the average price of the assets in Corporate Credits
(using end of period numbers) increased from 38.8% to 42.2% in line with the
tightening observed in credit markets.
As regards the Company's investments in residual and mezzanine debt of CDOs, at
the end of January 2012, all 53 positions in residual or mezzanine debt of CDOs
are currently paying their coupons. No particular event materially affected the
situation of these positions.
At the end of January 2012 the 40 mezzanine debt tranches of CDOs (38 tranches
of CLOs, 1 tranche of Emerging Debt CDO and 1 tranche of CDO of ABS), were
valued at an average price of 62% of par against 59% at the end of December
2011; the 12 classic residual tranches of CLOs were valued at an average price
of 62% against 59% one month earlier; the remaining asset, the Tennenbaum loan
fund was valued at 77% of par.
As regards the Company's ABS investments, at the end of January 2012, nothing
special affected the main position (Promise Mobility) or the other investments
in this bucket (6 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 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 considers 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.
*****
January Monthly Report:
http://hugin.info/137695/R/1588017/498219.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#1588017]
Unternehmensinformation / Kurzprofil:
Datum: 21.02.2012 - 18:41 Uhr
Sprache: Deutsch
News-ID 116941
Anzahl Zeichen: 13588
contact information:
Town:
Guernsey
Kategorie:
Business News
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