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, 21 May 2013 - 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 30.04.13 | At 29.03.13 |
+-------------------------------------+-------------+-------------+
| Gross Asset Value (GAV / ? million) | 212.7 | 221.1 |
+-------------------------------------+-------------+-------------+
| GAV per share (?) | 6.57 | 6.87 |
+-------------------------------------+-------------+-------------+
At the end of April 2013, the Gross Asset Value* (the "GAV") of Volta Finance
Limited (the "Company", "Volta Finance" or "Volta") was ?212.7 m or ?6.57 per
share, an increase of ?0.01 (+0.2%) since the end of March 2013 GAV after taking
into account the 31 cents per share dividend payment that occurred in March.
Year to date 2013 performance is +8.0%.
Note that the Company decided to subtract from the end of April GAV an unsettled
amount corresponding to the Investment Manager's Incentive Fees for the semi-
annual period ended 31 January 2013: ?3.7 million (details can be founded in
the Semi-Annual Report and Accounts of the Company published at the end of
March). This has been done in order to provide investors with a GAV figure that
better reflects the value of assets per share at the end of April 2013.
The April mark-to-market variations** of Volta Finance's asset classes have
been: +1.8% for Synthetic Corporate Credit deals, -0.1% for CLO Equity tranches;
+1.8% for CLO Debt tranches, +0.3% for Cash Corporate Credit deals and +2.2% for
ABS. The very modest increase of the GAV in April relative to the above mark-to-
market variations is the consequence of the 2.6% depreciation of the USD during
the month.
Volta's assets generated the equivalent of ?2.4m cash flows in April 2013 (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 ?15.6m which can be compared with ?16.5m for the
previous six-month period ended in October 2012.
In April, the company sold 4 positions (3 CLO debt tranches and one ABS) and
purchase one asset (ResLoc 2007-1X E2B, a debt tranche of UK RMBS ABS). The 3
CLO debt tranches were sold due to the tightening of their respective discount
margin. Considering the latest tightening of discount margins in the CLO area,
further sales can be expected in the coming months in order to rotate the
portfolio on higher yielding assets.
At the end of April, taking into account the coming settlement of the incentive
fees to the Investment Manager, Volta held ?0.8m in cash, including ?0.3m in
relation with the Liquidity Enhancement Contract and ?0.5m received in relation
with its currency hedge positions. Considering the recent capital raise and the
pace at which cash flows are generated Volta could be considered as having
roughly ?16m available to invest.
MARKET ENVIRONMENT
In March 2013, credit markets were positive in Europe and in the US. The 5 year
iTraxx European Main index and 5 year iTraxx European Crossover Index (series
19) spreads went respectively, from 126 and 486 bps at the end of March 2013 to
98 and 396 bps at the end of April 2013. During the same period, credit spreads
in the US, as illustrated by the 5y CDX main index (series 20), tightened from
91 to 75 bps. According to the CSFB Leverage Loan Index, the average price for
USA liquid first lien loans increased from 98.14% at the end of March 2013 to
98.43% at the end of April 2013. It was almost similar in Europe: the price of
the S&P European Leveraged Loan Index went from 92.28% to 92.81% at the end of
April 2013.***
VOLTA FINANCE PORTFOLIO
In April 2013, 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.
Regarding the Cash Corporate Credit Deals, no particular event or information
materially affected the situation of the positions in this bucket during the
month.
Regarding the Company's investments in Equity or Debt tranches of CLOs, in April
2013, no particular event materially affected the situation of the positions in
this bucket. All the positions are currently paying their coupons.
Regarding the Company's ABS investments, no particular event materially affected
the situation or the value of the positions in this bucket during the month.
The Company considers that opportunities could arise in several structured
credit sectors in the current market environment. Amongst others, mezzanine or
equity tranches of CLOs 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.
* GAV : In order to give a better indication of the value of assets for
shareholders the GAV has been diminished by Management and Incentive Fees due
for the financial period recently closed but not yet settled at the end of the
reported period
** "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 ?553
billion in assets under management as of the end of December 2012. AXA IM
employs approximately 2,450 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 document is not an offer for sale of the securities referred to herein in
the United States or to persons who are "U.S. persons" for purposes of
Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), or otherwise in circumstances where such offer would be restricted by
applicable law. Such securities may not be sold in the United States absent
registration or an exemption from registration from the Securities Act. The
company does not intend to register any portion of the offer of such securities
in the United States or to conduct a public offering of such securities in the
United States.
*****
This communication is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) investment professionals
falling within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order") or (iii) high net worth
companies, and other persons to whom it may lawfully be communicated, falling
within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The securities referred to herein are only
available to, and any invitation, offer or agreement to subscribe, purchase or
otherwise acquire such securities will be engaged in 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/1703514/563115.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#1703514]
Unternehmensinformation / Kurzprofil:
Datum: 21.05.2013 - 19:20 Uhr
Sprache: Deutsch
News-ID 262169
Anzahl Zeichen: 13428
contact information:
Town:
Guernsey
Kategorie:
Business News
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