VOLTA FINANCE - JULY MONTHLY REPORT
(Thomson Reuters ONE) -
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
*****
Guernsey, 23 August 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 31.07.12 | At 29.06.12 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 173.2 | 165.6 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 5.52 | 5.30 |
+-------------------------------------+-------------+-------------+
At the end of July 2012, the Gross Asset Value (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?173.2 m or ?5.52 per
share, an increase of ?0.22 (4.1%) since the end of June 2012.
Year to date 2012 performance including dividend payments is + 31.6% for the
first 7 months.
The July mark-to-market variations* of Volta Finance's asset classes have been:
+3.9% for Synthetic Corporate Credit deals, +2.8% for CLO Equity tranches;
+0.9% for CLO Debt tranches, +1.5% for Cash Corporate Credit deals and +61.8%
for ABS. The GAV increase in July reflects a positive July credit market but
mostly the upward revision, following the receipt of June payments and reports,
in the value of the UK non-conforming residual positions (ABS) held by the
Company.
Volta's assets generated the equivalent of ?2.2m cash flows in July 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 ?15.1m. It
can be compared with ?15.3m for the previous six-month period which ended in
January 2012.
In July the company made no new investment.
At the end of July, Volta held ?6.4m in cash, including ?2.5m posted in respect
to the currency hedge transactions. Considering the pace at which cash flows are
generated, Volta's current capacity for new investments amounts to ?4m.
MARKET ENVIRONMENT
In July 2012, credit spreads modestly tightened. The 5 year iTraxx European Main
index and 5 year iTraxx European Crossover Index (series 17) spreads went
respectively, from 166 and 661 bps at the end of June 2012 to 160 and 633 bps at
the end of July 2012. During the same period, credit spreads in the US, as
illustrated by the 5y CDX main index (series 18), also tightened from 112 to
107 bps at the end of July 2012. According to the CSFB Leverage Loan Index, the
average price for USA liquid first lien loans increased from 94.29% at the end
of June 2012 to 94.80% at the end of July 2012.**
VOLTA FINANCE PORTFOLIO
In July 2012, no particular event materially affected the situation of the
Synthetic Corporate Credit deals. 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.
Regarding the Cash Corporate Credit Deals, no particular event materially
affected the situation of the 3 positions in this bucket.
Regarding the Company's investments in Equity or Debt tranches of CLOs, at the
end of July 2012, all 54 positions are currently paying their coupons. No
particular event materially affected the situation of these positions.
Regarding the Company's ABS investments, following the receipt of the June
reports on the UK non-conforming residual positions held by Volta, the Company
decided to revise the value of 3 of them from ?1.9m at the end of June to ?5.3m
at the end of July. These positions resumed paying some significant cash flows
in September 2011 after more than 2 years of interruption. Since then we
regularly revised their value to take into account the possibility that further
payments could come. The July revision, following the March one, took into
account the possibility of receiving regular payments for the next two years
reflecting the very special situation of these assets. Considering the 20% rate
at which projected cash flows from these assets are discounted, this last
valuation exercise could still be considered conservative. These valuations,
being part of the end-of-year closing process for Volta, have been approved by a
third party specialised in this investment area.
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 Cash or
Synthetic Corporate Credit portfolios could be considered for investment.
Potential investments could be done 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, those which 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.
*****
July Monthly Report:
http://hugin.info/137695/R/1635954/525616.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#1635954]
Unternehmensinformation / Kurzprofil:
Datum: 23.08.2012 - 16:00 Uhr
Sprache: Deutsch
News-ID 177258
Anzahl Zeichen: 12709
contact information:
Town:
Guernsey
Kategorie:
Business News
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