VOLTA FINANCE - FEBRUARY MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 19 March 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 29.02.12 | At 31.01.12 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 148.2 | 139.8 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 4.79 | 4.52 |
+-------------------------------------+-------------+-------------+
At the end of February 2012, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?148.2 m or ?4.79 per
share, an increase of ?0.27 per share (or 6.0%) from ?4.52 GAV per share at the
end of January 2012.
After a 2011 +10.3% annual performance of Volta's assets reflecting a decrease
in prices more than compensated by actual cash flows received from the assets,
2012 starts the year with a positive 11.1% increase in two months.
The February mark-to-market variations* of Volta Finance's asset classes have
been: +2% for ABS investments, +3.9% for mezzanine of CDO investments, +15.6%
for residuals of CDO investments and +4.5% for Corporate Credit investments. The
GAV increase in February was in line with the positive stance, overall, on
credit markets.
Volta's assets generated the equivalent of ?2.4m of cash flows in February 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 ?15.1m. This amount can be compared with ?12.4m
for the previous six-month period ended in August 2011 (the most recent
comparable period considering the seasonality of payments).
In February 2012, the Company did not purchase or sell any asset.
At the end of February, Volta held ?5.8m in cash, net of ?0.3m of margin calls
received in respect of the currency hedge. Considering the pace at which cash
flows are generated and the need to keep cash available for the next dividend
payment in April, Volta's capacity for new investments is limited.
MARKET ENVIRONMENT
In February 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 143 and 620 bps at the end of January 2012 to 129
and 563 bps at the end of February 2012. During the same period, credit spreads
in the US, as illustrated by the 5y CDX main index (series 17), went from 103 to
93 bps at the end of February 2012. According to the CSFB Leverage Loan Index,
the average price for USA liquid first lien loans increased from 93.60% to
93.96% at the end of February 2012.**
The February 2012 increase in prices have reversed the decrease in prices seen
between May and November 2011 which reflected the various tensions and
uncertainties that weighted on most of risky assets during that period. Any
continuation in the easing in tensions and uncertainties should continue to
benefit Volta's asset values.
VOLTA FINANCE PORTFOLIO
In February 2012, no particular event materially affected the situation of the
Corporate Credit holdings. However, since then, and in line with previous
disclosures Jazz III and ARIA III suffered the triggering of a credit event of
the Hellenic Republic (0.5% in their respective underlying portfolio). Such
event was priced in for months and should have no material impact on Volta's GAV
in March. These two transactions remain highly sensitive to any new credit
event, especially to financial debts considering the significant exposures to
bank debt held through these positions.
As regards the Company's investments in residual and mezzanine debt of CDOs, at
the end of February 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.
As regards the Company's ABS investments, at the end of February 2012, nothing
special affected the main position (Promise Mobility) or the other investments
in this bucket (6 UK non-conforming residual positions).
Please find in the table below the market value and average prices of Volta's
main buckets (the ABS bucket is excluded as it is constituted of different asset
types and its average price is meaningless):
+------------------------------------------------------------+
|Market Value (?m) Current Average Price Last Month Average |
| Price |
+-----------------+------------------------------------------------------------+
|Corporate Credits| 28.2 44.0% 42.2% |
| | |
|CDO Equities USD | 40.7 71.9% 64.5% |
| | |
|CDO Equities EUR | 3.4 37.3% 37.3% |
| | |
|CDO Debts USD | 34.5 72.8% 70.6% |
| | |
|CDO Debts EUR | 29.8 55.1% 53.5% |
+-----------------+------------------------------------------------------------+
The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine or
senior tranches of CLOs, 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. 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 ?512
billion in assets under management as of the end of December 2011. AXA IM
employs approximately 2,367 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.
*****
February Monthly Report:
http://hugin.info/137695/R/1595576/502459.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#1595576]
Unternehmensinformation / Kurzprofil:
Datum: 19.03.2012 - 19:31 Uhr
Sprache: Deutsch
News-ID 126184
Anzahl Zeichen: 14072
contact information:
Town:
Guernsey
Kategorie:
Business News
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