VOLTA FINANCE - MAY MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 19 June 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 31.05.12 | At 30.04.12 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 165.6 | 157.1 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 5.30 | 5.03 |
+-------------------------------------+-------------+-------------+
At the end of May 2012, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?165.6 m or ?5.30 per
share, an increase of ?0.27 per share (or 5.4%) from ?5.03 GAV per share at the
end of April 2012.
Year to date 2012 performance, including dividend payments is a positive 26.7%
for the first 5 months.
The May mark-to-market variations* of Volta Finance's asset classes have been:
+54.7% for ABS investments, -1.3% for mezzanine debt of CDO investments, +4.4%
for equity positions in CDO investments and -7.1% for Corporate Credit
investments. The GAV increase in May was mainly due to the sale of one of the
ABS position with a significant gain (see details in Interim Management
Statement published the 1(st) of June) and from the appreciation of USD against
Euro.
Volta's assets generated the equivalent of ?2.8m of cash flows in May 2012 (non-
Euro amounts converted to Euro using end-of-month cross currency rates and
excluding principal payments from debt assets as well as the gain on the ABS
sale) bringing the total cash generated during the last six months to ?16.0m.
It can be compared with ?13.3m for the previous six-month period ended in
November 2011 (the most recent comparable period considering the seasonality of
payments).
In May 2012, the Company purchased, for ?2m, one asset, Alpine-Taurus, a
synthetic corporate transaction arranged by a major European bank under the
supervision of AXA Structured Finance.
At the end of May, Volta held ?13.7m in cash, including ?1.5m posted in respect
of the currency hedge transactions and net of the most recent sale and purchase
which have not as yet settled. Considering the pace at which cash flows are
generated, Volta's capacity for new investments amounts to ?13m.
MARKET ENVIRONMENT
In May 2012, credit spreads widened almost every where as a result of the
increasing uncertainties brought about by the renewed Euozone sovereign crisis
and with some modest deterioration in the overall economic situation. The spread
of the 5 year European iTraxx index and of the 5 year iTraxx European Crossover
Index (series 17) went respectively, from 140 and 650 bps at the end of April
2012 to 180 and 720 bps at the end of May 2012. During the same period, credit
spreads in the US, as illustrated by the 5y CDX main index (series 18), also
widened from 95 to 123 bps at the end of May 2012. According to the CSFB
Leverage Loan Index, the average price for USA liquid first lien loans decreased
from 94.76% at the end of April 2012 to 93.77% at the end of May 2012.**
VOLTA FINANCE PORTFOLIO
In May 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 May 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. Again, Volta received from one of its original
Euro BB tranche of CLO an earlier repayment of principal. With this new payment,
Volta cumulatively received, years in advance, in excess of 30% of the original
par amount of this deal that was purchased mid-2008 at 55% of par.
As regards the Company's ABS investments, at the end of May 2012, nothing
special affected the largest position (Promise Mobility). Regarding the other
investments in this bucket (UK non-conforming residual positions), as already
disclosed in the latest Interim Management Statement, one of these positions
have been sold with a ?5.4m gain to its end of April valuation. Most of the 5
other transactions paid some form of cash flows in June. The valuation of these
deals has not as yet been revised since the end of March revision (following
March cash flows) as we await to receive the after-payment trustee report to
reassess the situation of each deal separately.
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|28,8 42,7% 43,7% |
| | |
|CDO Equities USD |45,7 74,4% 74,0% |
| | |
|CDO Equities EUR |3,0 33,3% 35,3% |
| | |
|CDO Debts USD |38,2 73,1% 74,9% |
| | |
|CDO Debts EUR |30,0 55,8% 57,1% |
+-----------------+------------------------------------------------------------+
The significant widening of credit spreads modestly affected the average price
of Volta assets.
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.
*****
May Monthly Report:
http://hugin.info/137695/R/1620781/517872.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#1620781]
Unternehmensinformation / Kurzprofil:
Datum: 19.06.2012 - 19:04 Uhr
Sprache: Deutsch
News-ID 157936
Anzahl Zeichen: 14637
contact information:
Town:
Guernsey
Kategorie:
Business News
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