VOLTA FINANCE - INTERIM MANAGEMENT STATEMENT MAY 2012
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
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Guernsey, 1 June 2012 - Volta Finance Limited (the "Company" or "Volta Finance"
or "Volta") has published its Interim Management Statement. The full report is
attached to this release and is available on Volta Finance Limited's financial
website (www.voltafinance.com).
Dear Shareholders and Investors,
Over the quarter, from the end of January 2012 to the end of April 2012, the
Gross Asset Value (the "GAV") of Volta Finance Limited (the "Company" or "Volta
Finance" or "Volta") went from ?140.2m or ?4.53 per share, to ?157.1m or ?5.03
per share. During the same period Volta paid a ?0.22 dividend per share; it
reflects a positive 15.9% quarterly performance in its value.
During the same period, the Companypurchased 2 assets for ?1.2m. Since the end
of the period Volta sold very recently, one ABS for ?8m.
During the quarter, cash flows generated by the Company's assets, excluding
asset sales and principal payments from assets, amounted to ?8.7m (non euro
amounts being translated in euro using the end of month currency rate). This
amount could be compared to ?8.9m for the most recent comparable 3-month period
(from the end of July 2011 to the end of October 2011). The cash generated by
the assets, during the quarter under review, is rather significant, being close
to an annual rate of 25% of Volta's asset valuation, excluding cash, at the
beginning of the period (?136.3m).
The cash position in the Company's accounts went from ?3.8m at the end of
January 2012 to ?5.1m at the end of April 2012, including ?0.3m received in
respect of the currency hedge transactions and excluding ?1.1m due for the
latest purchase. Since the end of April 2012 as a result of some further coupon
payments and after the settlement of the most recent purchase (before the very
recent sale that has not yet settled), the cash position in the Company has
increased to ?6.5m at the time of writing.
The increase in the GAV during the quarter is due to decreases in discount
margins attached to structured credit products as well as to the high level of
cash flows generated by its assets.
At the time of publishing this statement, Volta sold one of its residual
positions in UK non conforming mortgages. This position was sold with a ?5.3m
gain, reflecting dramatic and recent changes in the way market participants
consider these assets. Volta had recently increased the valuation of these
assets. In the March 2012 monthly report, it was stated that the these revised
valuations were conservative.
Considering the pace at which cash flows are generated and the coming settlement
of the very recent sale, Volta's ability to invest is close to ?12m.
MARKET ENVIRONMENT AND LATEST DEVELOPMENTS
From the end of January 2012 to the end of April 2012, the 5y European iTraxx
index (series 16) and the 5y iTraxx European Crossover index (series 16) was
almost unchanged, from respectively 143 and 620 bps to respectively 140 and 615
bps.During the same period, credit spreads in the US, as illustrated by the 5y
CDX main index (series 17), decreased from 103 to 89 bps at the end of April
2012. According to the CSFB Leverage Loan Index, the average price for US liquid
first lien loans increased from 93.60% to 94.76%. *
VOLTA FINANCE PORTFOLIO
Corporate Credit
Over the quarter, the sole material event that affected the Corporate Credit
holdings was the occurrence of the highly expected default of the Republic of
Greece. It had no material impact on the market value of Volta's first-loss
positions (Jazz III and ARIA III) as it has been priced in for months. It should
be noted that the first loss positions remain highly sensitive to any credit
event that could occur. The other positions in this bucket are senior positions
that are either far from being concerned by this default thanks to their high
level of subordination to losses or were not impacted at all by the Greek
default.
Over the quarter, the value of the first loss positions went from ?6.9m to
?6.7m. However they generated ?1.6m of interest or coupons during the quarter.
The value of the debt tranches in the Corporate Credit bucket went from ?20.4m
to ?21.4m (?23.2m of principal amount) and generated ?0.2m of coupons during the
quarter.
The last position, a recent investment in regulatory capital trades saw its
value moving from ?5m to ?5.1m at the end of April 2012.
CDO
This bucket that accounted, at the end of April 2012 for 72.4% of the GAV, is
comprised of equity and debt tranches of CLOs. During the quarter, on average,
defaults and downgrades in the underlying loan portfolios continued to occur,
albeit at a slower pace than in the more recent quarters which remained low
compared to historical average
At the end of April 2012, the 11 USD equity positions were valued at ?42.7m (at
74% of par on average, from 65% of par at the end of January 2012). During the
quarter they generated ?3.7m of cash flows.
At the end of April 2012, the 2 euro equity positions were valued at ?3.2m (at
35% of par on average, from 37% of par at the end of January 2012). During the
quarter they generated ?0.5m of cash flows.
At the end of April 2012, the 23 USD debt positions were valued at ?36.9m (at
74% of par on average, from 71% of par at the end of January 2012). During the
quarter they generated ?0.5m of cash flows.
At the end of April 2012, the 19 euro debt positions were valued at ?30.9m (at
57% of par on average, from 53% of par at the end of January 2012). During the
quarter they generated ?0.7m of cash flows.
ABS
At the end of April, this bucket comprises of two different kind of assets:
Promise Mobility, a residual position on a very largely diversified portfolio of
small and medium German companies and 6 residual positions in UK non-conforming
mortgage deals.
Nothing material affected Promise Mobility during the quarter. Its value went
from ?5m to ?5.4m and it generated a coupon of ?0.3m.
During the quarter, the value of the residual positions in UK non-conforming
mortgage deals went from ?0.1m to ?4.9m (please refer to details on the reason
of such change in the March monthly report). This revision which was considered
conservative in the March monthly report proved to be so as one of these 6
positions has been recently sold with a significant gain. Most of these deals
are going to pay some cash flows in June. Depending on the level of such
payments a revision of their value may be appropriate.
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 or US 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 is
also in the position to take 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, a better opportunity for the Company.
Unless stated otherwise, the figures in this Interim Management Statement are as
at end of April 2012 as valuations are available only on a monthly basis with
some delays. Between the end of April 2012 and 30 May 2012, the date of
publication of this Interim Management Statement, the Company is not aware of
any significant event, materially affecting the Company's financial position or
the Company's controlled undertaking except the ?5m gain realized through the
sale of one of its positions..
* Index data source: Markit, Bloomberg.
(Full Interim Management Statement attachment on www.voltafinance.com)
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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
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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.
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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.
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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.
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Interim Management Statement May 2012:
http://hugin.info/137695/R/1616861/515732.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#1616861]
Unternehmensinformation / Kurzprofil:
Datum: 01.06.2012 - 16:39 Uhr
Sprache: Deutsch
News-ID 152364
Anzahl Zeichen: 15033
contact information:
Town:
Guernsey
Kategorie:
Business News
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