VOLTA FINANCE - APRIL MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 22 May 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 30.04.12|At 30.03.12|At 30.03.12|
+-----------------------------------+-----------+-----------+-----------+
|Gross Asset Value (GAV / ? million)| 157.1 | | 159.1 |
+-----------------------------------+-----------+-----------+-----------+
|GAV per share (?) | 5.03 | 4.92 * | 5.14 |
+-----------------------------------+-----------+-----------+-----------+
* subtracting the dividend payment that was scheduled for 19(th) April
At the end of April 2012, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?157.1 m or ?5.03 per
share, an increase of ?0.11 per share (or 2.2%) from ?4.92 GAV per share at the
end of March 2012 (subtracting from the end of March GAV the dividend payment
that was scheduled on 19(th) April).
Year to date 2012 performance, including dividend payments is a positive 20.8%
for the first 4 months.
The April mark-to-market variations* of Volta Finance's asset classes have been:
+1.5% for ABS investments, +1.1% for mezzanine of CDO investments, +3.8% for
residuals of CDO investments and +2.2% for Corporate Credit investments. The GAV
increase in April was mainly due to the cash flows received from assets. Prices
were almost unchanged..
Volta's assets generated the equivalent of ?2.9m of cash flows in April 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 ?15.0m. This amount can be compared with ?13.6m
for the previous six-month period ended in October 2011 (the most recent
comparable period considering the seasonality of payments).
In April 2012, the Company purchased one asset (Duane Street 2006 3X - E) for
?1.1m.
At the end of April, Volta held ?5.1m in cash, including ?0.3m received in
respect of the currency hedge transactions and net of the ?1.1m due to the
broker for the purchase of Duane Street debt tranches (settlement the 2(nd) of
May). Considering the pace at which cash flows are generated, Volta's capacity
for new investments amounts to ?4m.
MARKET ENVIRONMENT
In April 2012, credit spreads widened in Europe and were almost unchanged in
the USA reflecting very modest changes in the overall economic situation
however there was some resumption of uncertainties in the Euro zone. The spread
of the 5 year European iTraxx index and of the 5 year iTraxx European Crossover
Index (series 16) went respectively, from 124 and 576 bps at the end of March
2012 to 140 and 615 bps at the end of April 2012. During the same period, credit
spreads in the US, as illustrated by the 5y CDX main index (series 17), were
almost unchanged from 87 to 89 bps at the end of April 2012. According to the
CSFB Leverage Loan Index, the average price for USA liquid first lien loans
increased from 94.41% at the end of March 2012 to 94.76% at the end of April
2012.**
VOLTA FINANCE PORTFOLIO
In April 2012, no particular event materially affected the situation of the
Corporate Credit holdings. However, the first loss positions in this bucket
(ARIA III and the residual positions in JAZZ III) remain highly sensitive to any
new credit event, especially to debt of financial institutions considering the
significant exposures to banks held through these positions.
As regards the Company's investments in residual and mezzanine debt of CDOs, at
the end of April 2012, all 54 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 March 2012, nothing
special affected the main position (Promise Mobility) and 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 comprised of different asset
types and its average price is meaningless):
+------------------------------------------------------------+
|Market Value (?m) Current Average Price Last Month Average |
| Price |
+-----------------+------------------------------------------------------------+
|Corporate Credits| 28.2 43.7% 44.2% |
| | |
|CDO Equities USD | 42.7 74.0% 73.7% |
| | |
|CDO Equities EUR | 3.2 35.3% 36.7% |
| | |
|CDO Debts USD | 36.9 74.9% 74.6% |
| | |
|CDO Debts EUR | 30.9 57.2% 56.6% |
+-----------------+------------------------------------------------------------+
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 or US ABS as well as tranches of Corporate
Credit portfolios could be considered for investment. 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 to take advantage of the 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 Mark-to-Market 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.
*****
April Monthly Report:
http://hugin.info/137695/R/1614199/514204.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#1614199]
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